In the latest developments:
Reports indicate that MTN Nigeria is currently engaged in discussions with Emerging Markets Telecommunications Service Limited (9Mobile) regarding a potential spectrum acquisition.
Speculation surrounds the possibility of MTN assuming control of 9Mobile through this deal, raising concerns about a potential monopoly in the telecom industry.
The spectrum acquisition is seen as a lifeline for 9Mobile, which has faced challenges since the departure of crucial technical partners and investors.
An insider revealed to Punch that the ongoing talks revolve around MTN acquiring 9Mobile’s sole operating spectrum, suggesting that gaining control of the spectrum is akin to taking over the entire company.
Despite these reports, MTN has officially denied any involvement in an acquisition of 9Mobile’s spectrum. An MTN spokesperson clarified that the company is focused on exploring national roaming opportunities in Nigeria as part of its network-as-a-service strategy.
This development follows MTN Nigeria’s recent financial setbacks, with one of the telco’s worst losses in the past four years. Concurrently, MTN is in negotiations with MasterCard to acquire its fintech unit for $5.2 billion.
It’s worth noting that MTN had previously attempted to acquire 9Mobile in 2017, a move triggered by 9Mobile’s default on a $1.2 billion loan repayment scheme, citing economic challenges and a drop in naira valuation.
If successful, acquiring 9Mobile’s 12 million subscribers would significantly bolster MTN’s user base to 89.6 million, representing 76% of Nigeria’s 117 million adult population. This prospect has sparked concerns about potential monopolistic implications in Nigeria’s telecom sector.
Despite the buzz, the Nigerian Communications Commission (NCC) claims to be uninformed about any discussions regarding MTN’s potential acquisition of 9Mobile. Reuben Muoka, NCC’s Director of Public Affairs, stated that they are not confirming awareness of the situation, leaving many eyes on the regulator as this could become one of the most significant acquisitions in Nigeria’s capital market this year.
