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Tag: 9Mobile

  • 9mobile: Subscribers urge quality of service

    Subscribers of the 9mobile network in Abuja have appealed to the Teleology, the new owner to ensure that it improves the Quality of Service for customers’ satisfaction.

    The subscribers spoke with the News Agency of Nigeria on Tuesday as Teleology Holdings Ltd. emerges the new owner of 9Mobile.

    Mr Alexandar Emmanuel, a civil servant told NAN that he was an Etisalat user and now a 9mobile user and he heard that the network had been sold again.

    “It is okay but what I want them to do is improve on the network and reduce their charges otherwise we will abandon them and go for other networks.

    “I have been using 9mobile and I am being charged a lot any time I load credit and if I am given bonus, before you know it, everything disappears without even using it,’’ he said.

    Emmanuel appealed to Teleology to improve on its network and stop selling the company every year.

    According to him, in less than one year, 9mobile had been sold twice “this is not good for the company and users’’.

    Mr Musa Ahmed, a businessman said the new buyers should look at areas in which the previous owners failed and improve on them.

    Ahmed also called on Teleology to look at the issue of quality of service and endeavour to improve on it as the challenges of drop calls and unclear audio still needed to be tackled.

    “So I want them to look into that and address the issue quickly, ‘’ he said.

    Mrs Shola Ogbodu, another civil servant said that she was surprised that 9mobile had been sold again as she only just read about it in the papers.

    “I am surprised to read that 9mobile was sold again; I don’t know what is happening to that network.

    “But the new buyers should try and improve on the quality of service so that the company’s subscribers can enjoy the services, ‘’ Ogbodu said.

    Mr Micheal Osunde, a mechanic residing in Lugbe told NAN that whether 9mobile was sold every day was not his business, adding that all he was interested in was the quality of service.

    Osunde said he had used the network for close to eight years and he bought it as Etisalat, so 9mobile should improve its services to ensure customers satisfaction.

    Teleology Holdings Ltd. beat the March 22 deadline for transfer of a non-refundable deposit of 50 million dollars for the acquisition of 9mobile.

    Teleology emerged the new owner of 9mobile ahead of Smile Communications, which was the only other firm in the final round of the takeover bid.

    At the beginning of submission of bids, more than 10 bidders indicated interest in acquiring the mobile network, but only five were shortlisted.

    The five firms are Bharti Airtel, Globacom, Helios Investment, Smile Communications and Teleology Holdings.

    The acquisition bid resulted when the largest shareholder, Mubadala Development Company of the United Arab Emirates, (formerly Etisalat), pulled out of the firm.

     

  • Stakeholders appeal to new owner of 9mobile to resolve $1.2b loan owed banks

    Some capital market stakeholders on Monday appealed to Teleology, the new owner of 9mobile, to resolve amicably the 1.2 billion dollars syndicated loan owed some Nigerian banks.

    The stakeholders made the appeal in separate interviews with the News Agency of Nigeria in Lagos, while reacting to the emergence of Teleology as the new owner of the firm.

    Prof. Sheriffdeen Tella, the Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said the new owner should consider the outstanding loan as paramount.

    Tella said that an amicable resolution of the loan would bring stability to the telecom industry.

    He suggested that the laws guiding the establishment, operations and funding in the industry should be reviewed to enthrone an enabling working environment in the sector.

    “There is the need to encourage telecom firms to enlist on the Nigerian capital market to raise funds whenever they are about to run into troubled waters financially.

    “Eventual sale of 9mobile to a new private concern will lead to improvement in the services provided by the telecom firm, build confidence in the telecom industry and create employment,” Tella said.

    Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that if the new service provider settled the debts, it would bring a relief to the indebted banks.

    Kurfi said the restructuring of the loan by Teleology and eventual payment would reduce the banks liabilities.

    “It is a great relief to the Central Bank and particularly to the banks that have huge exposure,” he said.

    Mr Boniface Okezie, the President, Progressive Shareholders Association of Nigeria (PSAN) described the development as good news to the shareholders of indebted banks.

    Okezie said the loan repayment would enable the affected banks to recoup their money as a result of the loan to 9mobile.

    He called on the affected banks to work closely with the new owner to ensure prompt repayment of the loan.

    Teleology Holdings Ltd. beat the March 22 deadline for transfer of a non-refundable deposit of 50 million dollars for the acquisition of 9mobile.

    Teleology emerged the new owner of 9mobile ahead of Smile Communications, which was the only other firm in the final round of the takeover bid.

    At the beginning of submission of bids, more than 10 bidders indicated interest in acquiring the mobile network, but only five were shortlisted.

    The five firms are Bharti Airtel, Globacom, Helios Investment, Smile Communications and Teleology Holdings.

    The acquisition bid resulted when the largest shareholder, Mubadala Development Company of the United Arab Emirates, (formerly Etisalat), pulled out of the firm.

     

  • Teleology finally takes possession of 9mobile

    Teleology Holdings Ltd., says it is transferring a non-refundable completion deposit of 50 million dollars to the trustees of the bank syndicate presently holding ownership of 9Mobile.

    The company made this known in a statement signed by Mr Adrian Wood, Teleology’s Director and pioneer Managing Director of MTN Nigeria.

    Wood said the payment underscored Teleology’s financial capability and readiness to revive the organisation, adding it was set to aggregate a 10-point to turn 9mobile around.

    “The Nigerian telecom sector is set to witness a new era of innovation and vibrancy as Teleology puts finishing touches to its acquisition of 9mobile, Nigeria’s 4th telecom services provider.

    “In the last few days, key executives of the organisation have been deep in meetings with the Nigerian bank syndicate, the regulatory authorities and advisors.

    “These meetings have culminated in the signing of the Share Purchase Agreement (SPA) and other contractual documents pertaining to the acquisition.

    “Ahead of the March 22 deadline set by the Financial Advisers, Teleology has also transferred a non-refundable completion deposit of 50 million dollars to the trustees of the bank syndicate presently holding ownership of 9Mobile.

    “Equally important, Teleology has detailed an ambitious plan of action that will guide its rapid overhaul not only of the network but all aspects of the operations,” he said.

    According to Wood, 9mobile is transiting into a new phase that will be defined by optimal value delivery: value to our employees, value to our customers, value to local communities and indeed to all stakeholders.

    He added that the new organisation to emerge would be “engineering- led and brand-driven”.

    He said in delivering service, it would strive to ensure that 9Mobile operations delivered fulfillment to the customers, empowerment to local communities, protection to the vulnerable, and excellent rewards not only to the shareholders but to all stakeholders.

    Wood said the company planned to double the 9Mobile network with new 3G/4G specific cell sites as well as a several thousands of kilometers of fiber optic cable across the country.

    He said it would drive a special programme of rural internet coverage, focusing on 4G with broadband access planned for all of Nigeria’s 774 local government areas.

    He said youth engagement and employment programmes were also planned with all build contractors, distributors and consultants, while investment in broadband internet access technologies which were completely new to Nigeria was also planned.

    “Very importantly, the 9Mobile network will be optimised for high speed and high capacity data including imaging, video, games, music, IPTV and more.

    “Any three-point plan or three-dimension idea is naïve and completely missing the scope and complexity of the urgent Nigerian need to be brought into the 21st century broadband era.

    “Teleology envisages an increase of 50 per cent in direct employment in the new 9Mobile.

    “There is also an active plan to introduce within the first year, several million 4G-capable premium quality smartphones, at exceedingly affordable pricing.

    “Nigerians should look forward to a new regime of intensely exciting and innovative brand loyalty rewards programmes, from the new 9Mobile,” he said.

    He said that Teleology had entered into an alliance with Safaricom, the largest network operator in East Africa, famous for its global “mpesa” mobile financial services system.

    He said the system advances financial inclusion and supports the network with the highest operating efficiencies in Africa.

    He said that Teleology’s coming at a period when competition in the Nigerian telecom industry had for some years been limited to price wars between the various GSM companies, clearly, would herald a new era of intense competition and market share.

    He said that Teleology was promoted by a group of 12 telecom industry veterans with considerable experience not only in Nigeria and Africa but in the global telecom space as well.

    Wood commended the Barclays Africa, the Financial Advisers to the transaction, the Nigerian bank syndicate, the fulsome backing and support of the Nigeria Communications Commission and CBN which made 9Mobile’s survival possible.

    He also commended the loyal 9Mobile management and staff who carried on in the face of skepticism, doubt and negative market sentiment.

    He assured that additional details including formal relaunch plans would be unveiled in due course.

    Teleology emerged as the new owner of 9mobile ahead of Smile, which had been the only other bidder in the final round of the takeover bid.

    At the beginning of submission of bids, over 10 bidders had indicated interest in acquiring the mobile network, only five were shortlisted.

    These include Bharti Airtel, Globacom, Helios Investment, Smile Communications and Teleology Holdings Ltd.

    The acquisition bid was as a result of the Mubadala Development Company of the United Arab Emirates, 9Mobile (formerly Etisalat) largest shareholder, pulling out its investment out of the country.

    The pullout was over a protracted 1.2 billion dollars syndicated loan alleged to have been mismanaged by the former board of the telecommunications firm.

     

  • NCC board re-assures stakeholders of its commitment on sale of 9Mobile

    The Board of the Nigerian Communications Commission (NCC) has re-assured stakeholders of its commitment to ensure that 9Mobile is taken over by investors with the requisite technical capability and pedigree to manage it.

    Mr Tony Ojobo, NCC Director of Public Affairs made this known in a statement on Friday in Abuja.

    Ojobo said the NCC board took the decision during its meeting in Abuja to establish its determination to avoid the recurrence of missteps that might have led to the current situation in 9Mobile.

    “The board is acting in line with the powers conferred on the commission by the provisions of the Nigerian Communications Act 2003 and other instruments in that regard.

    “The commission will ensure that all relevant statutory and regulatory processes are duly complied with in the process leading up to the emergence of new owners for the company,’’ he said.

    Ojobo said the board also assured all stakeholders that the commission would apply all necessary diligence, to see the ongoing sale process through to its logical conclusion.

    He said this would be done in a manner that would protect the overall national interest and the seamless operation of the national telecommunications network.

     

  • NCC explains how false speculations reduce 9Mobile’s subscribers

    The Nigerian Communications Commission (NCC) has said that false speculations surrounding the sale of 9Mobile has reduced the telecommunications company’s subscriber base from 21 million to 17 million.

    The Executive Commissioner, Stakeholders Management, NCC, Mr Sunday Dare said this during an interview with newsmen on Thursday in Lagos.

    TheNewsGuru reports that the telecommunications operator’s customers, which was 20,521,952 as at January 2017 reduced to 17,075,813 as November 2017.

    Dare said that contrary to reports that Teleology had emerged the preferred bidder for the company, NCC had not been informed of any new owner of 9Mobile.

    He said that the interim board of 9Mobile was yet to communicate to NCC who the winner was and that was because the process was still on going.

    ”There are two regulators involved in the issue, the financial and telecommunications regulators.

    ”Unless the financial process is complete, the licensing process does not really kick in.

    ”Until then and until we have evidence of the final report, these speculations will not do the brand any good, it will not do the subscribers any good.

    ”And because of all the unconfirmed reports, subscriber base of 9Mobile dropped from 21 million to 17 million.

    ”We just need to wait for another 30 to 40 days to have a clarity on true situation,” he said.

    According to him, the CBN and NCC were carrying out their oversight duties in order to make sure that 9Mobile does not sink.

    ”In that process which began several months back, we have saved 4,000 jobs and saved 9mobile from crashing and we kept up other creditors that have been working with them.

    ”Now we have come thus far, and there are several litigations going and we have to be careful,” he said.

    Dare said that Capital Trustees and 9Mobile interim board had the powers to guard the sale processes to a logical conclusion.

     

  • Airtel pulls out of 9Mobile bid

    Indications emerged that Bharti Airtel, one of the top five firms jostling to purchase troubled 9mobile has reportedly pulled out of the race.

    According to a report by TheCable, the company, which already operates in the country as Airtel Nigeria, did not submit a final bid to Barclays Africa.

    9mobile, formerly Etisalat Nigeria, got into trouble when it obtained a syndicated loan of $1.2 billion from 13 banks in the country to expand its operations.

    However, due to the economic crisis in the country in 2016, the management of the company was unable to pay back the loan and the lenders came knocking.

    In order to avert a major crisis, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) took over the firm and appointed an interim board to oversee its sale.

    This was to be concluded before December 31, 2017, but when the deadline was not met, the date was shifted to January 16, 2017.

    However, one of the shareholders of Emerging Markets Telecommunications Service (EMTS), which owns the operating licence of 9mobile, Spectrum Wireless, obtained a court judgment last Friday nullifying the interim board, making the sale of the company void.

    At a press conference in Lagos on Sunday, Spectrum Wireless, warned the intending buyers of 9mobile to stay off or risk losing their investments.

    A report by TheCable on Friday (today) disclosed that apart from Airtel, two of the five potential buyers of 9mobile, Globacom and Helios Investment Partners LLP, submitted bids, but did not make any financial offer.

    Only two companies from the five were said to have made financial offers by the January 16 deadline to the sellers and these, according to the online journal, are Teleology Holdings Limited ($500 million) and Smile Telecoms Holdings ($300 million).

    On why Airtel could have pulled out of the deal, quoting an insider source, TheCable reports that there were “many things are not too plain with the entire process.”

    It said further that, “Airtel believes too many things are hidden about the health of 9mobile, and that it is too risky for anyone to buy the company.

    “Things became compounded with the court case by Spectrum Wireless. Remember, the Strive Masiyiwa case over the ownership of Econet which hurt the company for a long time.”

  • Court sacks 9Mobile’s interim board

    The Federal High Court in Lagos has nullified the appointment of an interim board for mobile telecommunications firm, 9Mobile.

    Justice Ibrahim Buba made the order based on an application by Spectrum Wireless Communication Ltd, which invested $35million in 2009 in Emerging Markets Telecommunications Service (EMTS)/Etisalat, the fourth largest telecommunications service operator in Nigeria.

    The judge ruled: “An order is hereby granted discharging the ex-parte order made by this court in this suit in favour of the respondent on the 3rd day of July 2017.

    “The order made pursuant to motion ex-parte dated 3rd day of July 2017 was a nullity, made without jurisdiction and obtained by misrepresentation of facts. Same be and is hereby discharged and vacated as prayed.

    “The motion for stay is struck out, having set aside the order. The respondent shall reverse all steps taken by it since the order was a nullity.”

    The order nullifies the appointment of Dr Joseph Nnana of the Central Bank of Nigeria (CBN) as chairman, Mr Boye Olusanya as Managing Director, Mrs Funke Ighodaro as Chief Financial Officer, Mr Seyi Bickersthet and Mr Ken Igbokwe on the EMTS board.

    The nullification follows Justice Buba’s dismissal of a preliminary objection filed by United Capital Trustees Ltd in response to the application by Spectrum Wireless, a shareholder of EMTS.

    United Capital comprises a consortium of local banks that provided funding for Etisalat.

    Spectrum Wireless claimed that the order was obtained by misrepresentation of facts that alienated its interests in the company.

    The interim board of EMTS, which has the support of the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC), received bids from five bidders in its intended sale of the company, which was to be concluded by last December 31, but was moved to January 16.

    Spectrum Wireless Communication’s lawyers warned that any institution or company who transacts business for the purpose of sale or acquisition of EMTS or 9Mobile does so at his or her own risk.

    EMTS, popularly known as Etisalat, secured a telecommunications licence in 2007.

    It has equity participation by local and foreign investors. In 2011, it secured N115.6billion and $235million from a consortium of domestic banks under the auspices of United Capital Trustees.

    EMTS’ alleged default to service the facilities led to a recovery by United Capital.

    To avert possible negative impact on the economy and the financial system, the CBN and the Nigerian Communications Commission (NCC) intervened.

    Following the exit of Etisalat and its directors in June 2017 from EMTS, United Capital obtained the ex-parte order of July 3, 2017 to appoint a Transitional Board to superintend over the company’s affairs.

    The Transitional Board rebranded the company 9mobile and announced a bid for its sale to interested investors. Concerned that United Capital’s action did not consider their stake in EMTS, other non-bank investors in EMTS, led by Spectrum Wireless, challenged last December the ex-parte order granted United Capital.

    Justice Buba nullified the order, approved for the board’s appointment on the grounds that it was granted based on misrepresentation of facts.

  • NCC sets new bidding deadline for acquisition of 9mobile

    The Nigerian Communications Commission (NCC) has said that the new deadline to conclude bidding for the acquisition of 9Mobile is Jan. 16, as against Dec. 31, 2017, the former date.

    The Director, Public Affairs of NCC, Mr Tony Ojobo, said that the extension was because there had not been any preferred bidder for the acquisition of 9Mobile in a statement on Friday.

    Ojobo said that an approval of the request for extension of time by the 9Mobile Interim Board was given by the two regulators, NCC and the Central Bank of Nigeria (CBN).

    He said that the approval set the deadline for the receipt of biding offers from the prospective bidders till Jan. 16, 2018.

    “Our attention has been drawn to newspaper publications alleging that a preferred bidder has been anointed to acquire 9Mobile and otherwise speculating on the outcome of the ownership transfer process.

    “For the avoidance of doubt, we wish to provide clarification that Barclays Africa remains in full control of the process leading to the emergence of a new owner for the company.

    “Barclays has not authorised any publication on the matter and is obliged to maintain full confidentiality thereon.

    “Contrary to speculations that a winner will be announced on the same day (Jan.16), we wish to clarify that Barclays is expected to review the bids received by the deadline and to make recommendations to the 9Mobile Interim Board thereafter,’’ Ojobo said.

    He said that the NCC and the CBN would be duly notified once the 9Mobile Interim Board accepted Barclays’ recommendations and a winning bid was determined in accordance with the terms of the exercise.

    According to him, the winner will now apply to NCC, in order to commence the processes for securing the regulatory approvals necessary for full effect of the transfer.

     

  • Court slams N15 million damages against 9mobile over infringement on private property

    A Jos High Court on Tuesday found Etisalat Nigeria (9 Mobile) guilty of trespassing into a personal property and ordered it to pay N15 million damages.

    The judge, R.K. Sha, ordered that the plaintiff be given the property.

    The judgment was based on a suit filed by Christ Best West Africa Ltd, the plaintiff, against Emerging Markets Telecommunication Services Limited (Etisalat Nigeria now 9Mobile).

    Sha said that the act of running and maintaining the mast on the property amounted to trespass and constituted a nuisance to the rights of the plaintiff to exclusively use and enjoy the property.

    The judge ordered that the mast be dismantled and removed and awarded N15 million damages to the plaintiff considering the amount of discomfort and annoyance that must have resulted from the defendant’s act of trespass.

    In the suit filed on October 14, 2013, the plaintiff said that the defendant trespassed into his property on 15 Hausa Road at Ku Mark West of Mines in Jos Local Government Area.

    It urged the court to declare 9Mobile mounting its telecommunication mast, electricity generating sets and the steel perimeter fence on the property illegal.

    The plaintiff also urged the court to declare the entire development of the property a nuisance and order a restoration of the property to him.

    It prayed the court for a mandatory order of injunction directing and compelling Etisalat to dismantle and remove the mast and other installations on the property.

    The plaintiff also prayed the court to award it N50 million as special damages against the defendant.

    The plaintiff’s counsel, A. I. Okafor, told the court that his client acquired the land in 2010, from the Olagbemiro’s family and processed the Right of Occupancy in 2011.

    Okafor said that the defendant entered the land and erected a mast illegally and thereby obstructed movement on the premises.

    “Many tenants refused to pay their rents as a result of the disturbances from the mast and prospective tenants were deprived thereby causing loss of enormous amounts of revenue from the property,” he said.

    Okafor said Nigeria Communications Commission inspected the site and confirmed that the mast was wrongly erected and a nuisance to the people.

    The defendant’s counsel, Great Nnamani, however, said that his client had a lease agreement on the piece of land for the purpose of erecting its telecommunication mast, base station and equipment.

    Nnamani said a search was conducted and it was found that one Mai Iliya, the District Head of Jenta Adamu Village in Jos North Local Government Area, issued a letter confirming ownership of the land.

     

  • Banks remove $1.2b 9Mobile debt from records

    The 12 banks involved in the $1.2 billion 9Mobile loan are setting aside a large part of the debt from their books ahead of the December 31 end-date for the fiscal year.

    The mobile company took the loan four years ago from a consortium of banks. It failed to repay the loan due to a currency crisis and the economic recession.

    In the deal are: Zenith Bank, GTBank, First Bank, United Bank for Africa, Fidelity Bank, Access Bank, Ecobank, First City Monument Bank, Stanbic IBTC and Union Bank.

    TheNewsGuru.com reports that Zenith Bank had on Monday announced that it had made a provision on 30 per cent of its loan to 9Mobile, the country’s fourth largest telecoms group formerly known as Etisalat Nigeria.

    The bank’s Chief Executive Officer, Peter Amangbo, said: “We have taken about 30 per cent … as a provision, which we believe is very prudent as the company is undergoing restructuring … to prepare for a new investor.”

    According to a reliable source, Zenith Bank is the largest lender to 9Mobile. The bank has declined to disclose its exposure to the telecoms group. The Tier-1 lender had last week reported a pre-tax profit of N92.18 billion for its half year against N53.91 billion a year ago.

    TheNewsGuru.com recalls that the Central Bank of Nigeria (CBN) and the Nigerian Communication Commission (NCC) in July saved Etisalat Nigeria from collapse, stopping the company from going into receivership. But the telecom giant witnessed a board, management and name change.

    Former Keystone Bank Executive Director Richard Obire said many other banks were likely to provide for certain percentage of the loans, depending on their profitability positions.

    He said Zenith Bank, being a highly profitable bank, was thinking that it might not be able to recover the full money. “Zenith may be considering that when it gets down to negotiation with 9Mobile, it may end up giving about 30 per cent of the debt. The debtor may ask for more restructuring and loan forgiveness,” Obire said.

    According to him, some banks are conservative and may want to stay within the five per cent regulatory non-performing loan threshold while some may want to exceed the limit. “Banks that are making more money are more likely to provide for their loans than those with less profitability,” he said.

    Obire said by exceeding the 10 per cent peg for sub-standard loans to go for 30 per cent provision, Zenith Bank was indirectly saying that although the loan was not doubtful, but it was more than sub-standard. “If the bank does 30 per cent provision on the loan in 2017, it may do 50 per cent in 2018 while considering the variables surrounding the loans,” he said.

    Head Treasuries at Ecobank Nigeria Olakunle Ezun said it is expected that the banks will provide for the loan, which he described as a bad debt. “For now, 9Mobile loan is like a non-performing loan for the banks. I understand that the banks are trying to restructure the loan. If they succeed, it will become a performing loan; otherwise it will have to be provided for in their books,” he said.

    He said more banks may provide for the loan by year-end, but such a decision will be determined by the boards and their interpretation of the future of 9Mobile.

    According to CBN Prudential Guidelines, banks are expected to review their credit portfolio continuously (at least once in a quarter) with a view to recognising any deterioration in credit quality. Such reviews should systematically and realistically classify banks’ credit exposures based on the perceived risks of default.

    To facilitate comparability of banks’ classification of their credit portfolios, the guidelines said assessment of risk of default should be based on criteria, which should include, but are not limited to, repayment performance, borrower’s repayment capacity on the basis of current financial condition and net realisable value of collateral.

    The CBN prudential guidelines stipulate that a credit facility should be deemed as non-performing when interest or principal is due and unpaid for 90 days or more; interest payments equal to 90 days interest or more have been capitalized, rescheduled or rolled over into a new loan.

    The guideline said a loan can be substandard, doubtful or lost. A loan is subs-standard when unpaid principal and/or interest remain outstanding for more than 90 days but less than 180 days. Credit facilities which display well defined weaknesses which could affect the ability of borrowers to repay, such as inadequate cash flow to service debt, undercapitalisation or insufficient working capital, absence of adequate financial information or collateral documentation, among others, are said to be sub-standard.

    According to the CBN guidelines, a loan is classified as doubtful when unpaid principal and/or interest remain outstanding for at least 180 days but less than 360 days and in addition to the weaknesses associated with sub-standard credit facilities reflect that full repayment of the debt is not certain or that realisable collateral values will be insufficient to cover bank’s exposure.

    A loan is classified as lost when unpaid principal and/or interest remain outstanding for 360 days or more and in addition to the weaknesses associated with doubtful credit facilities, are considered uncollectible and are of such little value that continuation as a bankable asset is unrealistic.