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Etisalat: Bello-Osagie Plots Comeback, ‘9Mobile’ A Transitory Name

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The battle for the soul of Etisalat Nigeria (now rebranded 9Mobile) has reached a crescendo as Nigeria CommunicationsWeek investigations showed that Mr. Hakeem Bello-Osagie, former chairman, has launched out in search of investment partners to buy the mega shares in the company.

In May 2013, Emerging Markets Telecommunications Services Limited (EMTS), trading under the name of Etisalat Nigeria, signed a $1.2billion medium-term syndicated loan facility agreement with Zenith Bank Plc, Guaranty Trust Bank Plc, First Bank of Nigeria Limited and 10 other banks.

But, Mr. Osagie who resigned his position on the heat of threats from the banks to take over the Company for failure to pay back the loan, plans to regain his position should he get new investors.

A week ago, Hatem Dowidar, the chief executive of Etisalat International, said Etisalat Group would, in the next three weeks, phase out the brand name in Nigeria.

The decision followed Emirates Telecommunications Group (Etisalat Group) withdrawal of further involvement in the ownership of the Nigerian subsidiary.

Until June 15, the United Arab Emirates, UAE, group was a major shareholder in Etisalat Nigeria, along with United Arab Emirates Sovereign Wealth Fund through Mubadala Development Company, Abu Dhabi.

The two affiliates controlled a combined 85 per cent equity in the telecom firm, with Myacinth holding 15 per cent stake through Emerging Markets Telecommunications Services, EMTS Holding BV, owned by former United Bank for Africa, UBA, Mr Bello-Osagie.

Opting to part ways with the company followed the crisis in the wake of the $1.2billion syndicated loan the telecom firm took in 2013 from a consortium of 13 Nigerian banks, an impeccable source revealed to Nigeria CommunicationsWeek, Mr. Bello-Osagie has vowed to block moves by an influential ‘money bag’ without technical credentials to take over the company.

According to the Source, “Mr. Bello-Osagie, former chairman’s confidence of pulling a surprise comeback is based on the fact that the 13 banks are supposed to take over the mega shares in Etisalat, but they are not interested. They (the banks) are actually shopping for investors to buy over the shares. Presently, the shares are domicile with UBA Capital.

“So, Mr. Osagie is not giving up on the matter. First, his ‘group’ still maintains 15% stake in Etisalat. Remember, they are the owners of the operating licence too. Secondly, he is not comfortable with an influential business mogul who is making moves to take over Etisalat. The potential investor lacks the technical milieu to manage the Company.

“The man roadblock to him (the money bag) is that he possesses an expired operating license. The Communications Acts 2003 makes it impossible for him to buy over the shares. But he views the present circumstances as a golden opportunity to launch fully into the telecommunications business, especially with the potentials 9Mobile has. He might want to buy the Company through other business ventures. So, EMTS is on red alert”. 

The Source also told Nigeria CommunicationsWeek that ‘9Mobile’ is merely a transitory name put forward by EMTS to beat the deadline as Etisalat International, has made intentions know to phase out the brand name in Nigeria by month end.

“Remember, at the launch of EMTS in Nigeria in 2008, “0809ja” was adopted, to affirm the “Nigerianness” of its origin. And it worked. The plan now is such that if EMTS succeeds in buying over the banks’ shares then the name 9Mobile, which is a transitory name, shall be dropped almost immediately. Should they fail to get investors of preference to buy the shares, it means EMTS will remain with 15% stake, but the new investors will come out with a new name. As it stands now, it stands 50-50 for Mr. Osagie to come back to his position”, the source said on Sunday night.

Recall, after the interventions of the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) in the loan feud between Etisalat Nigeria and a consortium of 13 banks, Mr. Osagie, resigned his appointment as part of restructuring plan for the telecommunications firm.

The new board is headed by Dr. Joseph Nnanna, chairman; Mr. Boye Olusanya who replaced Matther Wilshire as CEO; Mr. Oluseyi Bickersteth, non- executive director; Mr. Ken Igbokwe, non-executive director and Mrs. Funke Ighodaro, Chief Finance Officer.

 


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Rewane, Financial Expert Backs Telcos’ Move to Hike Tariff

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Bismarck Rewane, managing director/chief executive officer, Financial Derivatives Company Limited has backed telecommunication companies’ move to increase tariffs.

Rewane, Financial Expert Backs Telcos’ Move to Hike Tariff

Recall that telecom companies recently reiterated calls for an increase in prices of calls, data, and other services.

They argue that current prices are insufficient to maintain their business operations.

This request is contained in a communique signed by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON).

The telecom providers are advocating for cost-reflective tariffs, claiming that adverse economic headwinds are threatening their financial viability.

The operators stated that its general service pricing framework has not been reviewed upward in the last 11 years because of regulatory constraints.

“For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” the telcos said.

The telcos called on the government to facilitate a constructive dialogue with its industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with their financial viability.

This push for higher prices coincides with MTN Nigeria reporting a loss due to foreign exchange losses in 2023 and Airtel experiencing declining profits amid an economic downturn in the country.

While the development has triggered a backlash in some quarters, Rewane said telco pricing needs to reflect current realities.

He was a guest on weekend’s edition of Channels Television’s Politics Today

 

 

 

 


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Africa Data Centres Unveils ADC Channel Programme

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Africa Data Centres, a division of the Cassava Technologies group, is excited to announce the launch of its exclusive channel partner programme, ADC Channel.

Africa Data Centres Unveils ADC Channel Programme

This programme is designed to establish colocation and ecosystem partnerships, empowering members to expand their product portfolio & offerings alongside their market presence including an expanded data centre footprint.

ADC Channel presents a unique opportunity for global carriers, Internet Service Providers (ISPs), system integrators, Data Centres, Mobile Network, Content Developer, telecommunications companies, network infrastructure operators, hyperscalers and others to deliver state-of-the-art, sustainable and cost-effective digital solutions to their clients.

The primary objective of ADC Channel is to foster collaboration amongst partners, facilitating the delivery of optimised solutions and comprehensive support to clients. Partners enrolled in ADC Channel will benefit from a flexible approach that accommodates various partnership and go-to-market (GTM) models.

Finhai Munzara, CFO of Africa Data Centres, emphasises that the benefits of the ADC Channel programme extend to all types of partners.

“Our facilities are designed with the needs of hyper-scale, wholesale & enterprise clients in mind, catering to their technical, operational and commercial requirements. Whether it’s greenfield projects, built-to-suit facilities, powered shells, dedicated halls, or hybrid colocation, we offer flexible, scalable and sustainable solutions that suit partners of every kind.

He elaborates on the advantages of becoming an Africa Data Centres Partner.

Firstly, clients gain an additional product offering & footprint to augment their existing portfolio, enabling them to offer bundled solutions. This not only enhances their current revenue streams but also positions them for further growth & retention with both existing and future customers.

Africa Data Centres has also developed ADC Marketplace, a pioneering platform designed to empower partners and customers across the continent.

This innovative marketplace provides a dynamic space for partners to showcase their services and for customers to explore offerings, fostering collaboration and visibility within the African tech community. Offering unmatched connectivity and growth opportunities, the ADC Marketplace stands as the ultimate platform for African enterprise organisations and tech companies seeking to thrive in today’s digital landscape.

Partners stand to benefit from reduced churn, as colocation is inherently a ‘sticky’ product with minimal price erosion. By offering best-of-breed colocation services from Africa’s leading data centre provider, partners can differentiate themselves from competitors.

Partners will also enjoy seamless access to data centre experts, continuous commercial and technical support, and regular, complimentary training for their sales and product teams.

Furthermore, partners face no financial risk, as participation in the channel programme requires no investment and entails no capital expenditures for building data centres.

Partners can also leverage flexibility in setting their selling prices and receive significant upfront discounts, further bolstering their competitive advantage. Exclusive benefits include competitive pricing, dedicated sales & Presales Teams, Remote Hands support and access to joint marketing resources & activities, enabling partners to thrive in the marketplace.

Munzara emphasised that ADC Channel programme  epitomises Africa Data Centres’ commitment to fostering collaborative growth and innovation. “It serves as a platform for clients to enrich their product portfolios and seamlessly extend their business across diverse ecosystems with openness and transparency.” Africa Data Centres warmly invites partners to embark on this transformative journey towards shaping the future of digital connectivity in Africa.

“The programme prioritises mutual growth, leveraging Africa Data Centres’ profound industry expertise and extensive infrastructure,” Munzara concluded.

 


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Airtel Hosts Interactive Knowledge Session for Secondary School Girls

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As part of its commitment to empowering and mentoring women to become global leaders while breaking stereotypes and closing gender gaps, the Airtel Women Network, a platform comprising female employees of Airtel Nigeria, welcomed girls from Airtel’s adopted school, Alaba Oro Comprehensive Senior High School, Ajegunle, to commemorate International Day of Girls in ICT on Monday.

Led by the telco’s IT Director, Kemi Ariyo, the session emphasized the need for the rise of influential female role models in driving progress within Science, Technology, Engineering, and Mathematics (STEM) careers. It also served as an avenue to inspire young girls about the vast opportunities within the Information and Communication Technology (ICT) field.

During the session, Ogo Ofomata, Director of Enterprise and Airtel Business and President of the Airtel Women Network, shared insights on the significance of the 2024 commemoration with the students.

“Leadership entails leading yourself to do the things you have to do. With regard to the theme of this year’s International Girls in ICT Day, which is Leadership, our goal is to empower young girls and women to become programmers, coders, designers and to pursue careers in the ICT sector, ultimately becoming leaders in the IT sector,” she said.

The highlight of the event was a thought-provoking session led by Kemi Ariyo, IT Director at Airtel Nigeria, emphasizing the importance of technological knowledge in addressing various global challenges.

In her words, “The world revolves around technology and everything we do today has to do with technology. You can get into that space by adopting hard work, smart work, and an active involvement in internship programs. In addition, just as technology can be used in music and other sectors, learning technology can help you achieve your goals of problem- solving in this digital age.”

Also speaking at the event, Phanindra Nichanametla, Chief Financial Officer, Airtel Nigeria, restated Airtel’s tagline ‘A Reason to Imagine’, reassuring the students of Airtel’s commitment to encouraging positive imagination. “A very important note to take home from this event is that Airtel is here to change your imagination and give you opportunities to imagine more,” he said.

Airtel remains committed to promoting initiatives that promote gender equality and diversity in the workplace. By investing in the education and empowerment of young girls in ICT, Airtel Nigeria continues to pave the way for a more inclusive and prosperous future in the world of technology.


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