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9mobile Sale: Why Glo May Finally Lose Out

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By Dipo Olowookere

There are strong indications that Globacom, one of the four GSM service providers in Nigeria, may not be given the nod to acquire the troubled 9mobile, one of the mobile phone operators in the country.

9mobile, formerly Etisalat Nigeria, is desperately in need of a new investor after it was taken over in July 2017 following a N541 billion debt.

The telecoms firm obtained a syndicated loan from 13 Nigerian banks and after it failed its repayment plan, the lenders attempted to take over the company, but the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) prevented this.

After the regulators took over Etisalat Nigeria, Mubadala Group, the major investor from the United Arab Emirates, pulled out of the firm and said its brand name must not be used any longer, leading to the birth of 9mobile weeks later.

Barclays Africa, an arm of the Barclays Group, was appointed to shop for a new buyer of 9mobile and five companies have emerged the top bidders.

The firms are Bharti Airtel, an Indian telco that owns Airtel Nigeria; Globacom, the Nigerian company owned by Mike Adenuga Jnr; Teleology Holdings Limited, promoted by Adrian Wood, the pioneer CEO of MTN Nigeria; Smile Telecoms Holdings, a telco operating in Nigeria, Tanzania, Uganda, Congo DR and South Africa; and Helios Investment Partners LLP, an investment company.

According to a report by The Cable, Globacom desperately wants to acquire 9mobile, but it would take a miracle for this to happen.

This, according to the report, is because Glo does not have the financial muscle to revive 9mobile, which hopes to clear its debt with the banks.

“It is public knowledge that 9mobile is in dire need of real financial injection because of the debts, as well as a strong governance culture in view of its recent history.

“Glo is not the most financially buoyant to revive 9mobile, neither does it have the best-practice governance culture that 9mobile requires. Adenuga runs Glo like a kiosk or corner shop, and this cannot help the situation of 9mobile,” the insider was quoted as saying by TheCable.

However, it was gathered that Mr Adenuga desperately wants to acquire the telco and this is to claim the bragging rights of the largest telecom company in Nigeria.

Glo is currently the second largest operator in Nigeria with 37 million voice and 26.8 million internet subscribers, according to the October 2017 statistics from the NCC.

If it acquires 9mobile, it will automatically become the biggest network in Nigeria by adding 17 million to voice and 11.5 million to internet subscription base, he hopes.

Combined, the new entity’s 54 million voice lines and 38.3 million internet subscriptions will surpass MTN Nigeria’s 50.7 million and 32.5 million respectively.

“This, in sum, is why Adenuga wants 9mobile badly, despite the serious challenges Glo itself is facing in its business model,” the source said.

Glo would move from its 26.4% share of the market to 38.5%, including the benefit of recording more subscribers porting to its network.

Mr Adenuga’s company currently has the lowest number of gains from porting — an average of less than 1,000 per month — while 9mobile recorded a monthly average of 12,000 porting subscribers in 2017, industry’s highest by a distance, the journal reports.

Although the transaction is being handled by Barclays Africa, an arm of the Barclays Group, the telecom regulator, NCC, and the banking watchdog, CBN are expected to play a key role in the final decision.

NCC controls 9mobile’s operating licence while CBN regulates the banks. Both intervened to save 9mobile when it was going down.

The involvement of CBN and NCC, which had previously complained about “lack of transparency” by Barclays in the transaction, is not likely to do Mr Adenuga any favours.

However, Globacom remains confident that it would win the bid.

“Dr Mike Adenuga Jnr is never tired of pushing for improvement. Globacom boasts of arguably the most inspired and most passionate workforce in the industry.

We have the edge,” an insider told TheCable, refusing to be named because of internal rules.

Glo is the second national operator (SNO), licensed to provide national backbone for other networks as well as roll out landlines across the country.

“Since Adenuga got the SNO licence in 2003, he has not yet fulfilled the conditions of the licence. This is 14 years and counting,” a senior government official told TheCable on the condition that he would not be named.

“By now, it should have rolled out landlines nationwide and provided broadband access to millions of homes. The huge benefits to the economy have been lost over time. The notion that Globacom can get such an important licence and refuse to fulfill the conditions is unacceptable.”

Globacom was recently kicked out of the Republic of Benin after failing to meet conditions for the renewal of its licence, despite the fact that it took years for the company to roll out its service as a result of regulatory requirements.

The telecom company’s services in Ghana are also not well rated.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Nigeria to Launch NIGCOMSAT Satellites in 2028, 2029

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NIGCOMSAT Satellites

By Adedapo Adesanya

Nigeria has set 2028 and 2029 as the timeline for the deployment of its new satellites, NIGCOMSAT-2A and 2B, respectively.

The Managing Director of NIGCOMSAT, which is Nigerian Communications Satellite Limited and the premier satellite operator in Nigeria, Mrs Jane Nkechi Egerton-Idehen, disclosed this at the second Nigerian Satellite Week in Abuja on Monday. She noted that the development is expected to boost military intelligence, surveillance, and regional connectivity.

“For 2A and 2B, we have started the process. We have closed the tender and are now back into the financing and implementation stage. 2A is built to come up in 2028, and 2B for 2029.

“When they are up and running, they are expected to provide security within the borders and neighbouring countries. They will support the security agencies because data collection and intelligence in real time is important. Satellites like communication satellites allow that, irrespective of where they are,” she said.

In his remarks, the Minister of Communications and Digital Economy, Mr Bosun Tijani, said the satellites form part of the nation’s strategy to strengthen digital infrastructure.

Mr Tijani explained that the satellites will complement ongoing investments in 90,000 kilometres of fibre-optic cable and nearly 4,000 telecom towers, which are being rolled out nationwide and extended to neighbouring countries, including Cameroon, Niger, Chad, Burkina Faso, and the Republic of Benin.

He stressed that satellite technology is critical for national development, affecting education, agriculture, business, and emergency response.

“The president’s approval of NIGCOMSAT-2A and 2B demonstrates a clear commitment to building the future. These satellites will enhance security, connect remote communities, and extend our fibre-optic network into neighbouring countries,” he said.

“Some of these neighbouring countries pay up to ten times more for internet capacity than Lagos. Extending our fibre network will not only improve connectivity but also enhance border security and regional collaboration.

“Satellite technology affects everything, from how a child in a rural community accesses the internet to how farmers make critical decisions and how businesses operate across distance,” the Minister said.

Also speaking, the Chief of Army Staff (COAS), Lieutenant General Waidi Shaibu, welcomed the development, saying the military will leverage the satellites for operational efficiency.

“The Nigerian Army will continue to use space assets to improve intelligence gathering, surveillance, and operational coordination across all theatres of operation,” he said at the event, represented by Major General Kennedy Osemwegie, Commander of the Nigerian Army Cyber Warfare Command (NACWC).

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Interswitch, KCB Group to Deliver Innovative Financial Solutions in East Africa

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Interswitch KCB group

By Modupe Gbadeyanka

A partnership to advance digital payments and financial inclusion across East Africa has been strengthened between Interswitch and KCB Group.

Both parties have agreed to expand digital payment infrastructure and deliver innovative financial solutions that meet the evolving needs of individuals, businesses, and institutions across the region.

The aim is to accelerate seamless, secure, and inclusive digital payments in East Africa, where the leading Africa-focused integrated payments and digital commerce enabler, Interswitch, recently announced an expansion of Verve card acceptance footprint, leveraging its consolidated partnership with KCB Group, Kenya’s largest financial services group by assets, following a similar move in Uganda through the local KCB Franchise in February 2022.

During a recent executive engagement at KCB Group headquarters in Nairobi, the chief executive of Interswitch, Mr Mitchell Elegbe, held high-level discussions with KCB leadership, including its chief executive, Paul Russo.

At the core of the strengthened collaboration is the integration of Interswitch’s robust payment rails, card scheme, and emerging digital token solutions with KCB Group’s expansive regional footprint and trusted banking franchise.

This integration enables the acceptance of Verve cards and tokenised payment solutions across KCB’s extensive merchant point-of-sale network in Kenya and Uganda, significantly enhancing everyday usability for customers while strengthening KCB’s digitally driven retail payments offering.

The consolidated partnership is expected to drive increased merchant acquisition, improve interoperability across payment ecosystems, and expand access to secure, cashless transactions. It also reinforces both organisations’ shared objective of deepening financial inclusion and accelerating digital commerce across East Africa.

“Our collaboration with KCB Group represents a powerful alignment of vision and capability. By combining our technology-driven payment solutions with KCB’s strong regional presence, we are unlocking new opportunities to scale access, drive innovation, and deliver greater value to customers across East Africa,” Mr Elegbe stated.

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Telcos to Compensate Customers for Service Disruptions—NCC

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NCC

By Adedapo Adesanya

The Nigerian Communications Commission (NCC) has directed Mobile Network Operators (MNOs) to provide compensation to subscribers whose network quality of service experience is below specified targets within specific locations.

In a Sunday statement, the commission noted that its position is that customers should not be made to bear the full burden of service disruptions where operators fail to meet prescribed standards of service delivery.

Under this directive, NCC said erring operators would compensate affected users directly for breaches of Quality of Service (QoS) Key Performance Indicators (KPIs).

Mobile Network Operators (MNOs) will be required to pay these compensations for instances of poor quality of service recorded within specified time frames.

“The compensation will be provided in the form of airtime credits, calculated based on subscribers’ average spending patterns and their presence within Local Government Areas where service failures occur”, according to the statement.

The directive is rooted in the agency’s broader regulatory philosophy that places the consumer at the centre of Nigeria’s telecommunications ecosystem.

“Telecommunications services today underpin economic activity, social interaction, and access to digital opportunities. When service quality is poor, the consequences affect productivity, commercial activities, and even public confidence in our communications system.

“While regulatory fines have traditionally served as a deterrent against poor service delivery, the Commission is adopting a more consumer-focused approach that strengthens accountability within the industry”.

The commission explained that it has designed this measure to complement existing and ongoing efforts to strengthen service quality monitoring and enforce performance standards.

Further to this directive by the commission to MNOs on compensation to consumers, the regulator has mandated Tower Companies that own the critical infrastructure, such as masts, for Quality of Service delivery, to invest in infrastructure with measurable outcomes using sums that it has fined these companies, in addition to other financial fines the Commission will deem appropriate.

“The commission will continue to reinforce the obligation of operators to invest consistently in network resilience, capacity expansion, and infrastructure upgrades to meet the growing demand for telecommunications services.

“At the same time, it will deploy regulatory tools that promote fairness, transparency, and accountability across the sector, ensuring that every subscriber receives the quality of service they deserve while sustaining a telecommunications industry capable of powering Nigeria’s digital future”, the statement added.

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