MTN Nigeria is reportedly interested in acquiring a stake in its competitor, 9mobile, according to reports yesterday.
Assuming no unforeseen circumstances arise, the information acquired indicates that MTN Nigeria and Emerging Markets Telecommunications Service Limited (EMTS), which operates as 9mobile in Nigeria, is currently in the advanced stages of negotiations over a spectrum swap, making a telecom agreement a realistic possibility.
According to Technology Times, 9mobile is looking into using the spectrum trade option to get back on its feet after its major investor and technical partner, Mubadala of the United Arab Emirates (UAE), left the company in 2017.
Although Chineze Amanfo, the 9mobile spokesman, did not answer her call at the time of publication to confirm or reject the news, an MTN source told The Guardian that the two telecom companies are seriously engaged in a transaction.
The source claims that “the deal is on between the two firms.” You are aware of the implications when it comes to MTN starting with the spectrum. The lifeline of any telecom company is the spectrum. More revelations will be made public in the upcoming weeks as it continues to unfold.
But according to a close 9mobile source who talked with The Guardian anonymously, there was nothing substantial in the story that was making waves in the media.
“The story on the internet platform is fragmented, as you can see if you read it closely. Spectrum is discussed in one location, followed by MVNO and Globacom COO. I firmly think that 9mobile‘ management would be upfront and honest about any desire to sell shares to MTN. The tale that is currently circulating in the media has no direction at all,” he said.
While The Guardian’s investigation revealed that 9mobile, which celebrated its 15th anniversary in Nigeria last month, presently has 13.8 million users with a 6.28 percent market share, the news has caused anxiety in the industry, particularly over MTN’s potential dominance of the sector. With a market share of 38.5%, MTN serves 85 million users and has controlled Nigeria’s $77 billion telecom industry since the revolutions began more than 20 years ago.
A report claims that during the government of former President Muhammadu Buhari, the option of spectrum trade between MTN Nigeria and 9mobile reportedly reached an advanced stage. However, the transaction was temporarily shelved due to opposition to potential competition.
Remember how The Guardian revealed in May that Buhari supposedly waived 9mobile’s N70 billion spectrum fee? The NCC stated in the letter outlining the waiver that it represented the President’s assent to the Minister of Communications and Digital Economy, Prof. Isah Pantami, for the required measures.
The letter stated the following requests: that EMTS immediately pay the first installment of the outstanding amount (fifty percent) to the Federal Government of Nigeria; that the remaining fifty percent (unwaived) of the outstanding spectrum fees be paid in installments over a ten-year period; and that a complete waiver of the outstanding spectrum fees owed to the Federal Government of Nigeria be granted.
Following these prayers, EMTS was notified that N43, 608,048,767.50 had been waived for the 900/1800MHz frequency, and N29, 329, 977, 600.00 had been waived for the 2100MHz band.
The document also disclosed the annual installment payment of the remaining balance over a ten-year term for the 900/1800 MHz band, which is N4, 360,804,876.75, and for the 2100 MHz band, which is N2, 932,997,760.00.
The amount immediately required for the first installment in the 900/1800 MHz band is N4, 360,804,876.75; for the 2100 MHz band, it is N2, 932,997,760.00. This information was provided to EMTS.
