When Etisalat – now 9mobile – entered the Nigerian telecom market in 2008, the nation’s 64 million complete subscriber base was dominated by three operators: MTN Nigeria, Zain Nigeria (now Airtel), and Globacom. Regardless of the fierce competitors, the UAE-based firm recognized a niche out there—unserved younger subscribers. To seize this viewers, Etisalat partnered with Banky W, a rising Nigerian music star whose reputation had skyrocketed after his hit track Ebute Metta gained traction the earlier yr.
The collaboration birthed the enduring “0809ja for Life” marketing campaign, which resonated deeply with the youth and considerably boosted Etisalat’s market presence throughout its peak years. This progressive strategy ushered in a brand new period of focused advertising and shopper engagement in Nigeria’s telecom {industry}.
Very quickly, Etisalat turned the fourth-largest operator out there. The model additionally gained visibility by strategic advertising, sponsoring two seasons of the favored Nigerian Idol actuality present and launching the “Etisalat Prize for Innovation and Literature.”
These initiatives related, and by August 2016, the community had 22.5 million subscribers and a 14% market share.
Almost all telecom operators have adopted aggressive advertising and speedy infrastructure deployment as their entry technique. Whereas these methods assist unlock market visibility and subscriber recruitment, funding and advertising should align with company governance and regulatory compliance to make the enterprise sustainable. Within the case of Etisalat, the struggling company construction unravelled the corporate.
The collapse of a once-innovative telco
In 2016, Etisalat’s fortunes collapsed when it defaulted on a $1.2 billion mortgage to refinance a $650 million facility and modernise its community. The default was largely because of the devaluation of the naira, which considerably elevated the price of servicing its foreign-denominated debt.
In contrast to its opponents, Etisalat’s income streams had been constrained by its restricted spectrum holdings, together with the 1800 MHz and 900 MHz bands for 2G and 4G LTE, and the 2100 MHz band for 3G providers. Moreover, its fibre infrastructure was insufficient, with solely 4,620 kilometres of fibre in comparison with MTN’s expansive 39,972 kilometres, leaving Etisalat unable to compete successfully throughout Nigeria.
The corporate additionally misplaced a key income supply after promoting 2,136 base towers to IHS Towers in 2014 to streamline operations and minimize prices, lowering its capability to generate earnings from infrastructure leasing.
9mobile declined to touch upon any a part of this story.
One particular person acquainted with the matter who requested to not be named informed TechCabal {that a} plan to lift extra funding in 2018 failed after a boardroom dispute. The Hakeem Bello-Osagie-led EMTS disagreed on the construction of the brand new board.
The regulatory atmosphere didn’t additionally assist, because the operators had been on edge over the specter of heavy fines. In October 2015, the Nigerian Communications Fee (NCC) fined MTN Nigeria ₦1.04 trillion ($5.2 billion) for failing to deactivate 5.1 million unregistered SIM playing cards on its community. It might have defined why Etisalat Group didn’t anticipate the regulator to intervene within the mortgage negotiation or resolve the boardroom squabbles.
The hasty transition to 9mobile
Etisalat Group in UAE was so scarred by its whole expertise with banks, board of administrators and regulators in Nigeria that it gave an ultimatum to the Nigerian entity to stop utilizing its title in a single month. The primary title put ahead was 9jamobile, which was rejected, and so they settled for 9mobile, in line with three folks acquainted with direct data of the matter.
In July 2017, Etisalat Group, together with the United Arab Emirates Sovereign Wealth Fund owned by the Mubadala Improvement Firm, deserted its 85% stake and exited its Nigerian operations, giving room for Rising Markets Telecommunications Providers, which beforehand owned 15% of the corporate to take over.
Rebranding to 9mobile in July 2017 was purported to be a contemporary begin for the telco, however the brand new firm confronted two main challenges from the start. One was retaining Etisalat’s enterprise association with Huawei.
The UAE-based firm had a managed service settlement with the Chinese language expertise firm. In telecommunications, managed service is when a third-party supplier runs the operation, administration, and upkeep of particular telecom providers or infrastructure. It permits the client, usually a telecom operator, to give attention to its core enterprise operations.
Etisalat repeatedly met its monetary obligations with Huawei till it left the nation, in line with one particular person with data of the matter. Huawei continued to supply managed providers to 9mobile from 2018 to 2021 when it ended the contract as a result of mounting debt, the identical particular person stated.
9mobile additionally had an inside administration disaster. The corporate’s board and govt managers had been dissolved when Etisalat left and no new appointments had been made.
“The interim govt that 9mobile put to run and handle the connection with Huawei couldn’t handle it,” one former worker stated.
A brand new model with outdated issues
In 2018, the NCC stepped in to stabilise the corporate for acquisition. Two bidders Globacom and Teleology Holdings had been shortlisted. In keeping with two folks acquainted with the matter, Globacom misplaced out to Teleology Holdings as a result of the NCC reasoned it will create an undue benefit for the Nigerian-owned telco within the {industry}. Teleology Holdings gained the bid in February 2018 however the marriage was short-lived. 9mobile had amassed a lot debt that the brand new house owners wanted to lift funding to maintain the enterprise afloat. 9mobile additionally owed a number of distributors, together with Huawei.
Teleology Holdings couldn’t elevate the $500 million wanted to maintain the corporate working. 9mobile’s service high quality suffered as a result of the corporate couldn’t afford essential infrastructure investments resembling deploying fibre optic cables throughout the nation and constructing extra base tower stations.
NCC information reveals 9mobile misplaced roughly 8.6 million subscribers between August 2016 and 2023. From January to October 2024, it misplaced a further 10.4 million subscribers following an NCC {industry} audit that eliminated subscribers with out correct NIN-SIM registration from the system. The telco at the moment has a 2.1% share of the market.
Management turnover and operational disjoint
9mobile tried to deal with the subscriber decline with management modifications hoping the brand new CEOs would carry contemporary concepts to maneuver the corporate ahead. Nevertheless, the exit of Etisalat in 2017 and the discount in infrastructure funding meant the CEOs had little to work with. 5 CEOs have led 9mobile from late 2017 to 2023, the best turnover amongst Nigeria’s prime 4 telecom operators inside the interval. The management modifications embrace 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 due diligence,” one particular person near the corporate informed TechCabal.
One other {industry} skilled stated boardroom fights that continued after Etisalat’s exit didn’t permit the CEOs to hold out their duties. Thomas Etuh, founding father of LightHouse, reportedly met some boardroom opposition in buying the corporate.
In 2020, 9mobile secured a fee service financial institution (PSB) licence from the Central Financial institution of Nigeria (CBN) and launched 9PSB. It was not the anticipated game-changer contemplating the restrictions on what PSBs can supply, resembling lending, insurance coverage, and receiving overseas deposits. PSBs can concern debit and pay as you go playing cards of their names and function digital wallets, supply primary monetary advisory providers and facilitate funds and remittance.
Earlier than securing the licence, 9mobile had no footprint in cellular cash service, not like MTN Nigeria and Airtel Africa which dominated the market in numerous African international locations. The 2 telcos had been on the forefront of pushing the CBN to grant the PSB licence to telcos. The CBN bypassed them and issued the licence to 9mobile and Globacom. MTN Nigeria and Airtel bought their licence in 2021 and launched the service in 2022.
The restrictions on PSBs additionally tamed the expectations of the 2 largest telcos. To develop its scope within the monetary providers {industry}, MTN Nigeria utilized for 2 extra licences, Fee Options Service Supplier (PSSP) and Fee Terminal Service Supplier (PTSP) in November 2024.
New house owners and mounting price of operations
In June 2023, LightHouse Telecoms finalised a $750 million acquisition of 9mobile. The deal, introduced in July 2024, has not had the instant influence anticipated to shift the corporate’s trajectory. The telco is but to announce any capital spending on infrastructure, in line with one particular person with data of the matter. Additionally, as the corporate’s subscribers constantly keep in decline, recouping investor capital from customers’ income will not be straightforward. With an annual common income per consumer (ARPU) of ₦1,616, the telco generates simply ₦5.87 billion ($3.5 million) yearly; LightHouse Telecoms will want 214 years to get well its $750 million from subscriber income.
Infrastructure deficits stay a serious downside for 9mobile. With solely 4,620 km of fibre in comparison with MTN’s 39,972 km, the corporate depends closely on 48,957 km of microwave hyperlinks, that are much less efficient in city areas. The sale of its telecom towers to IHS additional limits flexibility. Frequent fiber cuts and the lack of 9mobile engineers to successfully handle the servers inherited from Huawei worsened service points, notably in Lagos.
Two former staff informed TechCabal that the fibre cables connecting Ajah, Sangotedo, and components of Epe to the 9mobile community had suffered a number of cuts since 2022, and nothing has been carried out to restore the harm. 9mobile subscribers inside the location at the moment can’t make direct calls utilizing their traces; they’ll solely make WhatsApp calls, stated three subscribers who stay within the space.
Fibre cuts are an industry-wide downside that operators should spend some huge cash to restore. Between 2022 and 2023, the Nigerian telecom {industry} reportedly spent roughly ₦14 billion to deal with 59,000 fiber cuts, averaging round ₦237,000 per incident. Rising deployment prices because of the naira devaluation additionally contributed to the issue.
“Many telcos have paused deploying fibre in Nigeria as a result of prices and naira devaluation. At one level, deploying fibre price $7,000 per kilometre, with base stations valued at $200,000,” stated telecom skilled Ayoola Oke.
9mobile can be shedding its bodily constructions nationwide as a result of an absence of funding. A number of of its 84 expertise centres are out of service or offering skeletal providers.
“I don’t suppose there are greater than three 9mobile expertise centres in the entire of Lagos which might be functioning to capability. In Abuja, many of the expertise centres should not working to full capability,” one particular person with data of the matter informed TechCabal. The corporate lists 17 expertise centres in Lagos and 9 in Abuja.
The identical particular person stated some staff left the corporate to work for opponents as a result of an absence of incentives like improved salaries from the brand new house owners. 9mobile has 1,948 staff, in line with Pitchbook.
“The brand new house owners didn’t improve salaries or present something new, so individuals are leaving,” one other former worker informed TechCabal.
Some staff started to resign after Huawei cancelled its contract with 9mobile in 2021 and left behind engineers managing the telco community, one particular person acquainted with the matter stated.
Within the Etisalat days, Huawei was accountable for the engineers – the vast majority of whom had been on contract, offering wage, advantages, and coaching. These engineers turned full-time staff of 9mobile. Nevertheless, over time most of the engineers have been poached by opponents.
“On this yr (2024) alone, I find out about 10 of them which have joined Airtel,” one former worker informed TechCabal. Huawei is at the moment the managed service supplier of Airtel.
The highway to restoration for 9mobile
Whereas the market anticipates a major capital injection and infrastructure enlargement from 9mobile’s new house owners, steps are being taken to strengthen the corporate’s management. In August 2023, it appointed Obafemi Banigbe as CEO, adopted by the appointments of John Vasikaran as COO and Ayodeji Adedeji as Chief Technical and Info Officer in July 2024. 9mobile stated in a press release that these modifications intention to stabilise the corporate and place it for the longer term.
One of many new management ambitions is to utilise roaming with different community suppliers with a presence in numerous components of the nation, stated one particular person with data of the matter. Roaming will permit subscribers to make and obtain calls, ship and obtain messages, and use information exterior of 9mobile’s protection areas. The roaming service will assist to extend the attain of the 9mobile community and scale back the price of infrastructure deployment.
“They count on to launch the roaming service earlier than the tip of subsequent yr. They’ve been speaking to different operators for a deal,” stated the identical particular person. That dialogue is with MTN Nigeria and Airtel Africa.
Within the meantime, 9mobile nonetheless generates income from its enterprise prospects who pay for his or her service in bulk.
Gbenga Adebayo, President of the Affiliation of Licenced Telecommunication Operators of Nigeria (ALTON), stated the model has huge potential together with infrastructure, subscribers and different bodily belongings that the brand new house owners can exploit whatever the firm’s decline.
“The corporate must restart to faucet these potentials. It’s a recognized model; therefore restarting will put it on the trajectory for development,” Adebayo informed TechCabal.
With its new house owners, a brand new board of administrators, and a brand new administration staff in place, 9mobile has an actual alternative to get well and reclaim its aggressive place in Nigeria’s telecom market. It might want to leverage its monetary energy and faucet into the historical past of robust company management throughout a number of firms overseen by its newly appointed board members, resembling Daisy Danjuma and Gloria Danjuma, each representing the pursuits of the TY Danjuma Group. The TY Danjuma Group oversees a multi-billion naira portfolio of firms spanning numerous sectors, together with oil and fuel, hospitality, actual property, agriculture, and insurance coverage.
However cash and company tradition alone is not going to instantly push 9mobile to the highest of the telecom {industry} dominated by MTN Nigeria and Airtel. 9mobile must carry again its artistic juice and remind tens of millions of younger subscribers why it bought them “speaking.”