When Etisalat– now 9mobile– got in the Nigerian telecom market in 2008, the nation’s 64 million overall customer base was controlled by 3 operators: MTN Nigeria, Zain Nigeria (now Airtel), and Globacom. Regardless of the intense competitors, the UAE-based business recognized a space in the market– unserved young customers. To record this audience, Etisalat partnered with Banky W, an increasing Nigerian music star whose appeal had actually escalated after his hit tune Ebute Metta got traction the previous year. The cooperation birthed the renowned “0809ja for Life” project, which resonated deeply with the youth and considerably increased Etisalat’s market existence throughout its peak years. This ingenious method introduced a brand-new age of targeted marketing and customer engagement in Nigeria’s telecom market. In no time, Etisalat ended up being the fourth-largest operator in the market. The brand name likewise got presence through tactical marketing, sponsoring 2 seasons of the popular Nigerian Idol truth program and releasing the “Etisalat Prize for Innovation and Literature.” These efforts linked, and by August 2016, the network had 22.5 million customers and a 14% market share. Almost all telecom operators have actually embraced aggressive marketing and fast facilities implementation as their entry method. While these techniques assist unlock market presence and customer recruitment, financing and marketing need to line up with business governance and regulative compliance to make business sustainable. When it comes to Etisalat, the having a hard time business structure deciphered the business. The collapse of a once-innovative telco In 2016, Etisalat’s fortunes collapsed when it defaulted on a $1.2 billion loan to re-finance a $650 million center and modernise its network. The default was mostly due to the decline of the naira, which considerably increased the expense of servicing its foreign-denominated financial obligation. Unlike its rivals, Etisalat’s income streams were constrained by its restricted spectrum holdings, consisting of the 1800 MHz and 900 MHz bands for 2G and 4G LTE, and the 2100 MHz band for 3G services. In addition, its fiber facilities was insufficient, with just 4,620 kilometres of fiber compared to MTN’s extensive 39,972 kilometres, leaving Etisalat not able to contend efficiently throughout Nigeria. The business likewise lost a crucial income source after offering 2,136 base towers to IHS Towers in 2014 to simplify operations and cut expenses, decreasing its capability to produce earnings from facilities leasing. 9mobile decreased to discuss any part of this story. A single person acquainted with the matter who asked not to be called informed TechCabal that a strategy to raise extra financing in 2018 stopped working after a conference room disagreement. The Hakeem Bello-Osagie-led EMTS disagreed on the structure of the brand-new board. The regulative environment did not likewise assist, as the operators were on edge over the danger of heavy fines. In October 2015, the Nigerian Communications Commission (NCC) fined MTN Nigeria 1.04 trillion ($5.2 billion) for stopping working to shut down 5.1 million unregistered SIM cards on its network. It might have discussed why Etisalat Group did not await the regulator to intervene in the loan settlement or solve the conference room squabbles. The rash shift to 9mobile Etisalat Group in UAE was so scarred by its whole experience with banks, board of directors and regulators in Nigeria that it offered a warning to the Nigerian entity to stop utilizing its name in one month. The given name advanced was 9jamobile, which was declined, and they went for 9mobile, according to 3 individuals acquainted with direct understanding of the matter. In July 2017, Etisalat Group, together with the United Arab Emirates Sovereign Wealth Fund owned by the Mubadala Development Company, deserted its 85% stake and left its Nigerian operations, offering space for Emerging Markets Telecommunications Services, which formerly owned 15% of the business to take control of. Rebranding to 9mobile in July 2017 was expected to be a clean slate for the telco, however the brand-new business dealt with 2 significant obstacles from the start. One was keeping Etisalat’s organization plan with Huawei. The UAE-based business had actually a handled service arrangement with the Chinese innovation business. In telecoms, handled service is when a third-party company runs the operation, management, and upkeep of particular telecom services or facilities. It enables the client, frequently a telecom operator, to concentrate on its core company operations. Etisalat frequently satisfied its monetary responsibilities with Huawei till it left the nation, according to a single person with understanding of the matter. Huawei continued to offer handled services to 9mobile from 2018 to 2021 when it ended the agreement due to installing financial obligation, the exact same individual stated. 9mobile likewise had an internal management crisis. The business’s board and executive supervisors were liquified when Etisalat left and no brand-new visits were made. “The interim executive that 9mobile put to run and handle the relationship with Huawei could not handle it,” one previous staff member stated. A brand-new brand name with old issues In 2018, the NCC actioned in to stabilise the business for acquisition. 2 bidders Globacom and Teleology Holdings were shortlisted. According to 2 individuals acquainted with the matter, Globacom lost to Teleology Holdings since the NCC reasoned it would develop an excessive benefit for the Nigerian-owned telco in the market. Teleology Holdings won the quote in February 2018 however the marital relationship was short-term. 9mobile had actually built up a lot financial obligation that the brand-new owners required to raise financing to keep business afloat. 9mobile likewise owed numerous suppliers, consisting of Huawei. Teleology Holdings might not raise the $500 million required to keep the business running. 9mobile’s service quality suffered since the business might not pay for essential facilities financial investments such as releasing fiber optic cable televisions throughout the nation and structure extra base tower stations. NCC information reveals 9mobile lost roughly 8.6 million customers in between August 2016 and 2023. From January to October 2024, it lost an extra 10.4 million customers following an NCC market audit that got rid of customers without appropriate NIN-SIM registration from the system. The telco presently has a 2.1% share of the marketplace. Management turnover and functional disjoint 9mobile tried to deal with the customer decrease with management modifications hoping the brand-new CEOs would bring fresh concepts to move the business forward. The exit of Etisalat in 2017 and the decrease in facilities financing suggested the CEOs had little to work with. 5 CEOs have actually led 9mobile from late 2017 to 2023, the greatest turnover amongst Nigeria’s leading 4 telecom operators within the duration. The management modifications consist of Boye Onasanya (2017-2018), Stephane Beuvelet (2018-2020), Alan Sinfield (2020-2021), Juergen Peschel (2021-2023), and Obafemi Banigbe (2023-present). “After Etisalat left, there was little bit due diligence,” a single person near to the business informed TechCabal. Another market specialist stated conference room battles that continued after Etisalat’s exit didn’t enable the CEOs to perform their obligations. Thomas Etuh, creator of LightHouse, supposedly satisfied some conference room opposition in obtaining the business. In 2020, 9mobile protected a payment service bank (PSB) licence from the Central Bank of Nigeria (CBN) and introduced 9PSB. It was not the anticipated game-changer thinking about the constraints on what PSBs can provide, such as loaning, insurance coverage, and getting foreign deposits. PSBs can release debit and pre-paid cards in their names and run electronic wallets, provide fundamental monetary advisory services and help with payments and remittance. Before protecting the licence, 9mobile had no footprint in mobile cash service, unlike MTN Nigeria and Airtel Africa which controlled the marketplace in various African nations. The 2 telcos had actually been at the leading edge of pressing the CBN to approve the PSB licence to telcos. The CBN bypassed them and provided the licence to 9mobile and Globacom. MTN Nigeria and Airtel got their licence in 2021 and introduced the service in 2022. The constraints on PSBs likewise tamed the expectations of the 2 most significant telcos. To broaden its scope in the monetary services market, MTN Nigeria looked for 2 extra licences, Payment Solutions Service Provider (PSSP) and Payment Terminal Service Provider (PTSP) in November 2024. New owners and installing expense of operations In June 2023, LightHouse Telecoms settled a $750 million acquisition of 9mobile. The offer, revealed in July 2024, has actually not had the instant effect anticipated to move the business’s trajectory. The telco is yet to reveal any capital costs on facilities, according to someone with understanding of the matter. As the business’s customers constantly remain in decrease, recovering financier capital from users’ profits might not be simple. With a yearly typical income per user (ARPU) of 1,616, the telco creates simply 5.87 billion ($3.5 million) each year; LightHouse Telecoms will require 214 years to recuperate its $750 million from customer profits. Facilities deficits stay a significant issue for 9mobile. With just 4,620 km of fiber compared to MTN’s 39,972 km, the business relies greatly on 48,957 km of microwave links, which are less reliable in metropolitan locations. The sale of its telecom towers to IHS even more restricts versatility. Regular fiber cuts and the failure of 9mobile engineers to efficiently handle the servers acquired from Huawei aggravated service concerns, especially in Lagos. 2 previous staff members informed TechCabal that the fiber cable televisions linking Ajah, Sangotedo, and parts of Epe to the 9mobile network had actually suffered numerous cuts considering that 2022, and absolutely nothing has actually been done to fix the damage. 9mobile customers within the place presently can’t make direct calls utilizing their lines; they can just make WhatsApp calls, stated 3 customers who reside in the location. Fiber cuts are an industry-wide issue that operators need to invest a great deal of cash to fix. In between 2022 and 2023, the Nigerian telecom market apparently invested around 14 billion to deal with 59,000 fiber cuts, balancing around 237,000 per occurrence. Increasing release expenses due to the naira decline likewise added to the issue. “Many telcos have actually stopped briefly releasing fiber in Nigeria due to expenses and naira decline. At one point, releasing fiber expense $7,000 per kilometre, with base stations valued at $200,000,” stated telecom professional Ayoola Oke. 9mobile is likewise losing its physical structures across the country due to an absence of financing. Numerous of its 84 experience centres run out service or offering skeletal services. “I do not believe there are more than 3 9mobile experience centres in the entire of Lagos that are operating to capability. In Abuja, the majority of the experience centres are not going to complete capability,” someone with understanding of the matter informed TechCabal. The business notes 17 experience centres in Lagos and 9 in Abuja. The exact same individual stated some staff members left the business to work for rivals due to an absence of rewards like enhanced incomes from the brand-new owners. 9mobile has 1,948 workers, according to Pitchbook. “The brand-new owners did not increase incomes or offer anything brand-new, so individuals are leaving,” another previous worker informed TechCabal. Some workers started to resign after Huawei cancelled its agreement with 9mobile in 2021 and left engineers handling the telco network, someone acquainted with the matter stated. In the Etisalat days, Huawei was accountable for the engineers– most of whom were on agreement, offering wage, advantages, and training. These engineers ended up being full-time workers of 9mobile. Over time numerous of the engineers have actually been poached by rivals. “In this year (2024) alone, I learn about 10 of them that have actually signed up with Airtel,” one previous worker informed TechCabal. Huawei is presently the handled company of Airtel. The roadway to healing for 9mobile While the marketplace prepares for a substantial capital injection and facilities growth from 9mobile’s brand-new owners, actions are being required to reinforce the business’s management. In August 2023, it designated Obafemi Banigbe as CEO, followed by the visits of John Vasikaran as COO and Ayodeji Adedeji as Chief Technical and Information Officer in July 2024. 9mobile stated in a declaration that these modifications intend to stabilise the business and position it for the future. Among the brand-new management aspirations is to make use of wandering with other network suppliers with an existence in various parts of the nation, stated a single person with understanding of the matter. Wandering will enable customers to make and get calls, send out and get messages, and utilize information beyond 9mobile’s protection locations. The roaming service will assist to increase the reach of the 9mobile network and minimize the expense of facilities release. “They anticipate to introduce the roaming service before completion of next year. They have actually been speaking with other operators for an offer,” stated the very same individual. That conversation is with MTN Nigeria and Airtel Africa. In the meantime, 9mobile still produces earnings from its business consumers who spend for their service wholesale. Gbenga Adebayo, President of the Association of Licenced Telecommunication Operators of Nigeria (ALTON), stated the brand name has huge possible consisting of facilities, customers and other physical properties that the brand-new owners can make use of no matter the business’s decrease. “The business requires to reboot to tap those capacities. It is a recognized brand name; thus rebooting will put it on the trajectory for development,” Adebayo informed TechCabal. With its brand-new owners, a brand-new board of directors, and a brand-new management group in location, 9mobile has a genuine chance to recuperate and recover its competitive position in Nigeria’s telecom market. It will require to take advantage of its monetary strength and take advantage of the history of strong business management throughout several business managed by its freshly designated board members, such as Daisy Danjuma and Gloria Danjuma, both representing the interests of the TY Danjuma Group. The TY Danjuma Group supervises a multi-billion naira portfolio of business covering different sectors, consisting of oil and gas, hospitality, property, farming, and insurance coverage. Cash and business culture alone will not instantly press 9mobile to the top of the telecom market controlled by MTN Nigeria and Airtel. 9mobile requirements to restore its innovative juice and advise countless young customers why it got them “talking.” Get the very best African tech newsletters in your inbox
New owners, brand-new hope? Inside 9mobile’s battle to remain pertinent
