Tag: Etisalat Group

  • Etisalat Nigeria changes brand name to 9Mobile

    Following the tales and woes of Etisalat Nigeria’s $1.2 billion loan owned a consortium of 13 Nigerian banks, finally, the troubled telecoms firm has changed its brand name to 9Mobile.

    TheNewsGuru reports the new brand name, 9Mobile, was adopted by a sitting of the executives of the telecoms firms today in Lagos after due deliberation.

    This is coming after Emerging Markets Telecommunication Services (EMTS) trading as Etisalat Nigeria was given an ultimatum by its Abu Dhabi-based mother firm, Etisalat Group to change brand name in three weeks after the $1.2 billion loan restructuring plan failed, which left chairman Hakeem Belo-Osagie resigning, and a resultant new management board.

    Formerly, following customers’ apprehension, the Vice President, Regulatory and Corporate Affairs of Etisalat Nigeria, Ibrahim Dikko had said subsisting agreement means the firm can continue to retain the brand name.

    “EMTS is here to stay and we wish to assure our esteemed customers that our core values of youthfulness, customer-centricity and innovation will remain the pillars on which we operate,” he said.

    Dikko further said in the statement that “EMTS launched in Nigeria in 2008 with ‘0809ja’ to affirm the ‘Nigerianness’ of our origin and sphere of influence. In our nine years of operation, we have remained a prime driver and avid supporter of the Nigerian spirit of excellence, and we will continue to stay true to our ‘Naijacentric identity”.

    The telecoms firm has most probably retained the ‘9janess’ of the firm by invariably deciding on ‘9’ in 9Mobile – of course, its a mobile network.

    In retaining its Nigerianness, the telecoms firm had assured its more than 20 million subscribers that a change of brand name will not in any way affect service delivery.

    “What is most important now is to… ensure that the business runs and meets its obligations,” the company’s new chief executive Boye Olusanya said on Tuesday.

    The telecoms company is, however, yet to make an official statement on the development.

     

  • Job loss: NCC addresses Etisalat Group 3 weeks ultimatum to EMTS

    …allays fears of operation disruption

    The Nigerian Communications Commission (NCC) has addressed the Etisalat Group three weeks ultimatum given Emerging Markets Telecommunication Services (EMTS) for it to change brand.

    The telecoms regulator vowed to protect the company from possible collapse in its operations, and assured there would be no job loss.

    The Commission allayed the fear yesterday during the 80th edition of Telecom Consumer Parliament, TCP held at Yar’ Adua Centre, Abuja.

    Prof. Umar Dambatta, Executive Vice Chairman of the Commission, gave the assurance while delivering his opening address at the event.

    Prof. Dambatta, who was represented by Mr. Sunday Dare, said the Commission wasn’t unaware of the current challenge facing Etisalat Nigeria following the recent report about its mother company withdrawal from Nigerian market but had waded into the matter to save the jobs of the staff and interest of the 21 million subscribers at stake.

    The EVC said though the Commission never anticipated the crisis would befall Etisalat, it was resolute in ensuring that it does not jeopardize the interest of the consumers.

    ‘‘This year 2017 is a year of the consumer. We never anticipated the challenge Etisalat is currently facing and because of the lives of the 21 million consumers at stake, NCC and the CBN came in to intervene.

    ‘‘As I speak, Etisalat is still running, despite the proposed plan to change the name. In spite of the challenges, we have kept it running for the sake of the consumers. I can assure you that no single staff of Etisalat has been fired, we will make sure all of them are protected and the services not disrupted.’’

    Also speaking on the matter, the Director, Consumer Care at Etisalat, Mr. Plato Syrimis, also dismissed the fear of the staff and subscriber of Etisalat, saying that the change of name would have no impact on the operation and service delivery of the company, insisting that no consumer would lose his line.

    ‘‘Don’t expect any dare consequences because of the proposed change of name. The truth is that Etisalat has been operating from the Middle East shareholder until it pulled out of Nigeria two weeks ago.

    ‘‘We have been operating and still running. That will not affect our services. It is unfortunate that this happened but will not affect the market, which had been in operation for many years.

    ‘‘Airtel changed name six times and that did not make it lose its market that is what is expected to happen in Etisalat. It is only the brand name that is going to change, all our services , innovations, staff are not going to be lost. You are not going to wake up one day and lose your line.

    ‘‘What is happening for the past 24 hours is not going to affect Etsalat services, what happened two weeks ago is only going to affect the brand name, that is what is likely to change, if it does change.

    The name on the door will change but the services, innovation, customer focus, customer services will always be there,’’ he further explained.

    On the TCP, the EVC said the event was unique and remarkable because the Commission had decided to celebrate the consumer of the Nigerian telecom industry this year in consistent with the 8 Point Agenda of his administration. He commended the consumers for consistently spending a significant portion of their disposable income on telecommunication services, even as it continues to improve the quality of life, businesses and social engagements.

    In recognition of the consumers’ contribution to the industry, Dambatta promised to strive further in ensuring improved quality of service, ubiquitous and affordable services to the consumers.

    He also assured that the Commission would entrench a consumer-centric regulatory governance and policy administration and also ensure consumer information flow and education as well as ensure consumer satisfaction by supporting better access to life changing and improvement opportunities and social engagement.

    ‘‘We are however grateful to consumers for responding positively to the telecommunications revolution. It is really the investment of the consumer through patronage of services that has encouraged build out and supported services provision. There is need to celebrate and recognize the consumer as the Boss of the industry and as Boss he who pays the piper dictates the tune.

    ‘‘The Commission has taken steps to ensure that the telecommunications sector remain vibrant and has carried out its regulatory functions to ensure that the companies operating in the industry are healthy.

    Where necessary, NCC has made interventions to prevent disruptions to consumer experience,’’ he added.

     

  • EMTS says Etisalat Nigeria Experience Centres still in full operation

    EMTS says Etisalat Nigeria Experience Centres still in full operation

    Emerging Markets Telecommunication Services Ltd. (EMTS), trading as Etisalat Nigeria, on Tuesday said its Experience Centres were still in full operation.

    Mr. Ibrahim Dikko, the Vice-President, Regulatory and Corporate Affairs of EMTS, made this known in a statement in Lagos.

    Dikko said: “We wish to state that all Etisalat offices, Experience Centres and outlets across Nigeria, are in full operation.

    “They are providing services including customer care services on 24/7 basis.”

    He reiterated that Etisalat Group has withdrawn the right given to EMTS on the continued use of Etisalat brand in Nigeria.

    “EMTS hereby assures its customers and other stakeholders that such withdrawal does not in any way imply discontinuation of our business as Nigeria’s fourth largest mobile service provider.

    “Etisalat Nigeria will not relent in its unwavering commitment to delivery of quality services.

    “We are committed to continuously empowering all segments of Nigeria.

    “This is through the development and roll-out of innovative products, services and solutions that help individuals, businesses and organisations solve their everyday problems,” he said.

    Dikko said that the telecommunications company was intensifying efforts aimed at reaching full closure on the ongoing discussions with regards to the transition phase.

    He said that customers and stakeholders would be duly informed, as soon as discussions were concluded, especially on details of a rebranding.

    Dikko commended the customers, stakeholders and the media for their unalloyed support to the company.

     

  • Etisalat Nigeria: Subscribers apprehensive as firm’s crisis deepens

    Etisalat Nigeria: Subscribers apprehensive as firm’s crisis deepens

    Subscribers on the Etisalat network have become apprehensive as the crisis rocking the “Not Just a Network, It’s an Attitude!” telecoms firm shows no signs of an end.

    The protracted $1.2 billion debt crisis has left UAE-based Etisalat Group, which gave Emerging Markets Telecommunication Services (EMTS) the right to operate in Nigeria as Etisalat Nigeria, to withdraw its brand name, giving the new management board an ultimatum of 3 weeks.

    The continued crisis has left subscribers on the network worried as to what will become of their beloved network.

    “I’ve been burying my head in the sand over this Etisalat Nigeria thing. What does all this mean for people that have Etisalat lines?” Jollz queried on Twitter.

    The Nigerian Communications Communication (NCC) has for the umpteenth time issued press releases trying to allude the fears of subscribers on the network; but the telecoms regulators has been mute in the face of the new development.

    And although the management of EMTS has come out to say subsisting agreements mean the firm is allowed to continue using the brand name, and that even a change of brand would not affect network integrity, customers are not convinced.

    >>Also read: Etisalat Nigeria: Change of name essential – Telecoms association

    “Nnaa, me I have dumped my Etisalat SIM card since this issue started o,” Nnamdi told TheNewsGuru tech editor at a Sweet Sensation outlet in Lagos state.

    One thing that is certain is that, since Etisalat Nigeria isn’t folding up, and that Airtel still exist till date, subscribers on the network have nothing to worry about.

    “This Etisalat Nigeria story reminds me of the inconsistent journey of ownership of the Red network. You know the story from Econet to Airtel,” @Iam_Muzzamil tweeted.

     

     

  • We have subsisting agreement to use Etisalat as brand name in Nigeria – EMTS

    We have subsisting agreement to use Etisalat as brand name in Nigeria – EMTS

    The management of Emerging Markets Telecommunication Services, EMTS trading in the country as Etisalat Nigeria has said it has a subsisting agreement for the continued usage of the brand name.

    The management of the company said this in reaction to the three weeks ultimatum given it by United Arabs Emirate-based Etisalat Group to stop the usage of the brand name.

    The working relationship between the two broke down after Etisalat Nigeria was unable to restructure a $1.2 billion loan it took from a consortium of banks.

    This led to the Etisalat Group withdrawing from Etisalat Nigeria on Monday and issuing the three weeks ultimatum for the stoppage of the usage of the brand in Nigeria.

    But reacting to the development, the Vice President, Regulatory and Corporate Affairs of Etisalat Nigeria, Ibrahim Dikko, said EMTS has a valid and subsisting agreement with the Etisalat Group, which entitles it to use the Etisalat brand, notwithstanding the recent changes within the company.

    Dikko said discussions are ongoing between EMTS and the Etisalat Group pertaining to the continued use of the brand.

    He said EMTS will issue a formal statement once discussions are concluded.

    He said the final outcome on the use of the brand name will in no way affect the operations of the business as its full range of services remain available to its customers.

    Dikko added in the statement: “EMTS launched in Nigeria in 2008 with ‘0809ja’ to affirm the ‘Nigerianness’ of our origin and sphere of influence.

    “In our nine years of operation, we have remained a prime driver and avid supporter of the Nigerian spirit of excellence, and we will continue to stay true to our ‘Naijacentric identity.

    “This notion is strongly reflected in our core messages and depicted in major projects and initiatives which we have been known to support.

    “All these initiatives have their foundation embedded in supporting key aspects of the Nigerian fabric: building Nigerian businesses and empowering Nigerian’s with a focus on the youth.

    “Nigeria remains the soul of EMTS’ business and we have made the brand alluring to our teeming subscribers who see a piece of the spirit and character of Nigeria in everything we do.

    “EMTS is here to stay and we wish to assure our esteemed customers that our core values of youthfulness, customer-centricity and innovation will remain the pillars on which we operate.

    “We thank our esteemed customers for their abiding faith in us,” the Etisalat Nigeria boss stated.

     

  • Etisalat debt predicament: 13 Banks’ shareholders mount huge pressure

    …ask telecoms firm to clear debt

    Shareholders of the 13 banks involved in the N1.2 billion loan for Etisalat Nigeria have asked the telecoms company to pay up its debt in order to guarantee the payment of annual dividends.

    The shareholder group told the News Agency of Nigeria in Lagos on Tuesday that the company risks legal action by the banks if it failed to settle its outstanding loan obligation.

    The National Coordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie, said the affected banks should approach the court for receivership if Etisalat failed to settle the debt.

    Mr. Okezie said in view of the obligations the banks have to their shareholders, in terms of dividend payment at the end of the financial year, it was incumbent on Etisalat to pay the debt.

    On his part, the Chairman of Nigeria Professional Shareholders Association, Godwin Anono, said the company was under obligation to settle the debt, since the transaction was in line with the customer-bank relationship, involving terms and conditions that must be obeyed.‎

    Mr. Anono said the shareholders were in support of the banks’ move to acquire the company if it failed to settle the loan.

    “This is like any other transaction. It’s not government business. I stand on existing protocol to say that the banks should acquire the company if it fails to settle the debt,” he said.

    The Head Research, SCM Capital Ltd, Sewa Wusu, said where there was any breach of the terms and conditions of the loan between Etisalat and the consortium of banks, then the normal legal process should be followed.‎

    Mr. Wusu said the issue was beginning to elicit concerns in the banking industry considering the amount involved and its potential impact on the balance sheets of the banks banks.

    “Since the monetary authority is also involved in the negotiation, I am sure this will ensure prompt settlement of the situation among the parties,” he said.

    Etisalat had obtained a $1.2 billion (N377.4 billion) syndicated loan in 2013, from a consortium of 13 Nigerian banks, to finance a major network rehabilitation, upgrade and expansion of its operational base in Nigeria.

    The consortium of banks include Access Bank, Zenith Bank Plc, Guaranty Trust Bank Plc, First Bank Limited, Fidelity Bank Plc, First City Monument Bank (FCMB), Stanbic IBTC, Ecobank, United Bank for Africa (UBA) Plc and Union Bank of Nigeria Plc.

    Zenith Bank, Guaranty Trust Bank and Access Bank have the top three exposures of the total loan – N80 billion, N42 billion and N40 billion respectively.

    Etisalat Nigeria said last week it had paid about half of the initial loan (about N504billion), leaving a total outstanding sum of about $574 million.

    >>Also read: United Arab Emirates-based Etisalat Group says willingness to release its brand name is conditional

     

  • Etisalat Group willingness to release brand name conditional

    United Arab Emirates-based Emirates Telecommunications Group Company (Etisalat Group) might be unwilling to release the Etisalat brand to the consortium of banks, except the banks are prepared to fulfill certain conditions.

    Emerging Markets Telecommunication Services Limited (EMTS), operating as Etisalat Nigeria, is using the brand name after a contractual agreement with the UAE-based telecoms giant, TheNewsGuru findings reveal.

    TheNewsGuru reports Etisalat Group released the brand name to EMTS to operate in Nigeria after securing 45% and 25% ordinary and preference shares respectively. Etisalat Group is holding the shares in Etisalat Nigeria through EMTS Holding BV established in the Netherlands.

    After Etisalat Nigeria defaulted on a loan facility agreement with a consortium of Nigerian banks, the Security Trustee of the banks issued a Default and Security Enforcement Notice requesting EMTS Holding BV — established in the Netherlands, and through which Etisalat Group holds its interest in Etisalat Nigeria — to relinquish 100% of its shares.

    This is after subsequent discussions between Etisalat Nigeria and the lender banks failed to produce an agreement on restructuring the loan agreement.

    Etisalat Nigeria had obtained the $1.2 billion (N377.4 billion) loan in 2013 from the consortium of banks to finance a major network rehabilitation, upgrade and expansion of its operational base. The firm said last week it had paid about half (about N504 billion) of the initial loan leaving a total outstanding sum of about $574 million.

    Etisalat Group is saying the 45% ordinary and 25% preference shares it is having in EMTS Holding BV that permits it to operate as Etisalat Nigeria has a quantity of no importance.

    “The carrying value of these shares in Etisalat Group’s books is nil,” according to a letter signed by Etisalat Group Chief Financial Officer, Serkan Okandan, addressed to the Abu Dhabi Securities Exchange, and made available to TheNewsGuru.

    “The remaining financial exposure from the Company is related to operational services (such as international roaming) provided by Etisalat Group to EMTS, and management and technical and IP related agreements,” it added.

    Etisalat Group did not however overtly state in the letter that it had transferred 100% of its shares in Etisalat Nigeria to United Capital Trustees Limited, the Security Trustee of the banks, but it did confirmed the lenders extended the deadline from 9 June 2017 to 23 June 2017 5:00 pm Lagos time.

    Etisalat Group said the operational services, such as the international roaming, provided to EMTS, and the management and technical and IP related agreements is limited to an amount of AED 191 million (about N16.3 billion) as of March 31 2017, stressing this is the subject of ongoing discussions with EMTS and the EMTS lenders.

    “Should there be any material developments on this subject, a further announcement would be made in accordance with applicable Securities and Exchange rules and regulations,” the letter concluded.

    Meanwhile, the Nigerian Communications Commission (NCC), in a statement by its Director of Public Affairs, Tony Ojobo, has said “The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sub licensed or transferred to another party unless the prior written approval of the commission has been granted;” quoting Section 38 and Sub-section 1 of the Nigerian Communications Act (NCA) 2003.

    According to the NCC, Sub Section 2 of the same provision equally states that, “A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation”.

    >>Also read: $1.2bn loan: Banks refute takeover of Etisalat Nigeria

    The consortium of banks include Access Bank, Zenith Bank Plc, Guaranty Trust Bank Plc, First Bank Limited, Fidelity Bank Plc, First City Monument Bank (FCMB), Stanbic IBTC, Ecobank, United Bank for Africa (UBA) Plc and Union Bank of Nigeria Plc.

    Zenith Bank, Guaranty Trust Bank and Access Bank have the top three exposures of the total loan – N80 billion, N42 billion and N40 billion respectively.

    Whatever becomes of EMTS’s Etisalat Nigeria, the NCC has assured and reassured the over 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat subscribers continue to enjoy the services provided by the operator.

    >>Trending: Etisalat debt predicament: 13 Banks’ shareholders mount huge pressure

     

  • Consortium of banks takes over Etisalat Nigeria

    After talks of Etisalat Nigeria debt restructuring plan reached stalemate, a consortium of banks will effective June 23 take over the business of Etisalat Nigeria.

    The parent company of Etisalat Nigeria, Etisalat Group, announced the takeover on Tuesday in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

    The filing, with reference number Ho/GCFO/152/85, and dated June 20, 2017 signed by Etisalat Group Chief Financial Officber, Serkan Okandan, said efforts by EMTS to restructure the repayment of the syndicated loan by a consortium of banks to Etisalat Nigeria collapsed.

    “Further to our announcement dated 12 February, 2017, Emirates Telecommunications Group Company PJSC, “Etisalat Group” would like to inform you that Emerging Markets Telecommunications Services Limited “EMTS” (“the company), established in Nigeria and an associate of Etisalat Group with effective ownership of 45% and 25% ordinary and preference shares respectively, defaulted on a facility agreement with a syndicate of Nigerian banks (“EMTS Lenders”).

    “Subsequently, discussions between EMTS and the EMTS Lenders did not produce an agreement on a debt restructuring plan.

    “Accordingly, the Company received a default and security Enforcement Notice on 9 June 2017 requesting EMTS Holding BV (EMTS BV) established in the Netherlands, and through which Etisalat Group holds its interest in the company) requiring EMTS BV to transfer 100% of its shares in the company to the United Capital Trustees Limited (the Security Trustee”) of the EMTS Lenders by 15 June 2017.

    “Subsequently the EMTS Lenders extended the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,” the filing said.

    Etisalat has been under pressure since 2016, following the demand notice for the recovery of a $1.72 billion (about N541.8 billion) loan facility it obtained from the consortium of banks, led by Access Bank PLC and other Nigerian and foreign banks, in 2015.

    The loan, which involved a foreign-backed guaranty bond, was for the mobile telephone operator to finance a major network rehabilitation and expansion of its operational base in Nigeria.

    Unable to meet its debt servicing obligations agreed since 2016, the consortium, prodded by their foreign partners, threatened to take over the company and its assets across the country.

    But the intervention of the telecom sector regulator, Nigerian Communications Commission, NCC, and its financial sector counterpart, the Central Bank of Nigeria, CBN, persuaded the banks to rethink their threat and give Etisalat a chance to renegotiate the loan’s repayment schedule.

    However, EMTS Holding BV, established in the Netherlands, has up to June 23 to complete the transfer of 100 percent of the company’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks.

     

     

     

    Source: Premium Times