Tensions have risen in the telecoms sector, as industry watchers are fixated on the declaration of a winner to take over ownership of 9mobile, as offer submission ends tomorrow, January 16, 2018.
BusinessDay finds that industry players are preparing for the changes and a slight shakeup in the sector as a result of a new market leader, if any of the already existing operators in the running, acquires 9mobile.
According to Subomi Sodipo, telecoms industry analyst; “there is tension because there is a fair chance for either Globacom, with already about 37.4 million subscribers or Airtel with almost 36 million subscribers to add 9mobile’s 17 million subscribers and become the clear market lead by subscriber numbers, beating MTN’s 51.4 million subscriber number by a huge gap.
“Even if Smile Telecoms Holdings, Helios Investment Partners LLP or Teleology Holdings wins the bid to take ownership of 9mobile, there will still be a slight shakeup as they would be somewhat regarded as new players in the industry under new management, and that will take some getting used to. However, we remain hopeful about a smooth handover,” Sodipo told BusinessDay.
Tony Ojobo, Director, Public Affairs, Nigeria Communication Commission (NCC) on Thursday last week that Barclays Africa, the financial adviser to the 13 lender banks of the sale of 9mobile will review the bids received up on till tomorrow, January 16 and make recommendations to the 9mobile Interim Board. The winner will be announced after the Interim Board accepts recommendations made by Barclays.
“The NCC and Central Bank of Nigeria (CBN) will be duly notified once the 9Mobile Interim Board accepts Barclays’ recommendations and a winning bid is determined in accordance with the terms of the exercise.
“The winner will now apply to NCC in order to commence the processes for securing the regulatory approvals from the Board of the NCC necessary to give full effect to the transfer,” Ojobo said.
The December 31, 2017 deadline for the handover of 9mobile, was postponed to January after the two regulators approved the request for extension of time by the 9Mobile Interim Board.
Bharti Airtel, Smile Telecoms Holdings, Helios Investment Partners LLP, Teleology Holdings Limited and Globacom were in December 2017, shortlisted as the five bidders still in the running to take over ownership of 9mobile, after rescheduled bidding process took place with the approval of both regulators and lender banks involved.
Market analysts are of the view that the results of the bidding process will make an interesting turn in the industry as all operators are currently trying to mitigate the current challenges related to squeezed margins, and in other cases generated losses, and lack of direct access to foreign currencies.
Although analysts say that reduced competition will be a lose-lose situation for all operators, and the public as a whole, experts suggest that for there to be healthy competition in the market, smaller operators may have to be consolidated.
However, there can be no clear predictions as, according to the NCC, the “outcome of the ownership transfer process cannot be speculated because Barclays Africa remains in full control of the process leading to the emergence of a new owner for 9mobile and Barclays has not authorised any publication on the matter and is obliged to maintain full confidentiality thereon.”
Jumoke Akiyode-Lawanson
