This article will reveal why Globacom desperately wants 9mobile but may take a miracle for the nation’s second largest mobile network to gets its wish.
In July 2017, 9mobile owned N541 billion debt to a consortium of 13 banks which made United Arab Emirates – the major investor, to pull out of Etisalat. This made Etisalat changed its name to 9mobile till date.
9mobile is now up for sale and five bidders: MTN, Airtel, Teleology, SMILE, Globacom and Helios Investment Partners LLP and lots more were up to buy 9mobile but Globacom made it up to the top.
An Insider told the TheCable that the major reason Globacom is desperate to buy 9mobile is to claim the bragging rights of the largest telecom company in Nigeria.
According to October 2017 NCC statistics, Glo has 26.8 million subscribers with 37 million voice. Glo is the second largest operator and if it acquires 9mobile, Globacom will automatically become the biggest network in Nigeria by adding 17 million to voice and 11 million subscribers.
Why Globacom may not get 9mobile to fulfill its wish
The transaction is being handled by NCC – the telecom regulator and Central Bank of Nigeria (CBN) – the banking watchdog, which are from the arm of Barclays Group, Barclays Africa.
The involvement of CBN and NCC will not likely do Globacom no favours because they had previously complained about “lack of transparency” in the transaction.
Not only that, NCC controls 9mobile operating license while CBN regulates the bank and both of them intervened when 9mobile was going down.
Since Globacom was given the second national operator (SNO) in 2003 and licensed to provide national backbone for other networks as well as roll out landlines across the country.
It’s 14 years and counting, Globacom hasn’t done anything. Recently, it was kicked out of Republic of Benin for failing to to meet conditions for the renewal of its license. Even the telecom company’s services in Ghana is not well rated.
Well, Globacom is not the most financially bouyant to revive 9mobile, neither does it have the best-practice governance culture that 9mobile requires.
Upon all, Globacom is never tired of pushing for improvement and it still have the confident that it would win the bid.
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