NATCOMS Opposes MTN’s Bid to Acquire 9Mobile

The National Association of Telecoms Subscribers, NATCOMS, has urged the Nigerian Communications Commission (NCC) to intervene and prevent MTN from acquiring 9Mobile. The association expresses concerns that such a move could lead to the creation of an oligopoly, potentially stifling competition in the industry.

Deolu Ogunbanjo, the President of NATCOMS, argued that with MTN already holding close to 50% of the country’s telecom market, allowing the acquisition of 9Mobile would consolidate an unprecedented level of control in the hands of one company. The call for regulatory intervention raises questions about the balance of power and competitiveness within Nigeria’s telecom sector.

Despite the concerns raised by NATCOMS, reports suggest that MTN Nigeria’s strategic acquisition of 9Mobile is progressing to an advanced stage. This move brings to light the complex dynamics at play in the telecom industry and the intricacies involved in business transactions of this magnitude.

To understand why 9Mobile is willing to be acquired, we need to look back to 2017 when the company faced financial challenges following the departure of its primary technical partner and investor, Mubadala of the United Arab Emirates (UAE). Struggling with a loan repayment scheme of $1.2 billion, 9Mobile decided to sell its spectrum to mitigate its financial woes. The company cited an economic downturn and a drop in the valuation of the naira as contributing factors to its inability to meet its financial obligations.

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Interestingly, this isn’t the first attempt by MTN to acquire 9Mobile. A similar effort was made in 2017, highlighting the persistent interest of MTN in expanding its presence in the Nigerian telecom market.

The big question now is the fate of this acquisition bid. Will the telecoms regulator heed the call from NATCOMS and intervene, or will the deal proceed as planned? The industry and stakeholders eagerly await the decision of the NCC, as it holds the key to shaping the future landscape of telecommunications in Nigeria. As the saga unfolds, all eyes are on the regulatory authorities to determine whether the acquisition aligns with the principles of fair competition and consumer welfare or if measures need to be taken to safeguard the industry’s dynamics. The unfolding chapters will undoubtedly provide valuable insights into the trajectory of Nigeria’s telecom sector.