“We Have Taken Over” MTN Moves to Buy Stake in Competitor After Declaring N147bn in Profit

“We Have Taken Over” MTN Moves to Buy Stake in Competitor After Declaring N147bn in Profit

  • MTN Nigeria is planning to acquire a stake in its competitor, 9mobile
  • This came after the exit of 9mobile's key technical partner and investors in 2017
  • A source confirmed that both parties engaged in intense discussions on the deal

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market

MTN Nigeria is eyeing stakes in its competitor, 9mobile. The Nigerian telecommunication giant plans to acquire 9mobile’s operating spectrum.

The option to sell its spectrum became necessary after 9mobile firm fell on hard times upon the exit of its key technical partner and investors, Mubadala of United Arab Emirates (UAE) in 2017, according to a Technology Times report.

MTN Move to Buy Stake in Competitor After Declaring N147bn in Profit
A source from MTN said there are ongoing conversations for the acquisition of 9mobile’s operating spectrum. Photo Credit: MTN Group
Source: UGC

Conversation on going

A source from MTN told Punch that there are ongoing conversations for the acquisition of 9mobile’s operating spectrum.

Read also

Minister breaks silence on calls to increase MTN, Airtel, Glo, 9mobile data, call rates

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

“Once we have the spectrum, it is more like we have taken over the company. The spectrum is what they use to operate, once they don’t have it again, they can’t. I can’t confirm how much is being discussed yet,” the source said.

Reuben Muoka, the Director of Public Affairs, at NCC, however, said it is not aware of such a conversation.

He said:

“We are not aware. It is not for us to confirm. We are the regulator. It is two organizations that are discussing commercial relationships until they tell us. We are not going to confirm whether we are aware or not. We are also reading that they are having discussions. I am sure they know the appropriate thing to do.”

Read also

“Accept our apologies”: MTN sends important message as subscribers celebrate debt cancellations

MTN boosts revenue but declines in profit

This comes after the telecommunications company declared a massive boost in revenue by 21.76% to N1.77 trillion in nine months ended 30th September 2023 as contained in its financial report.

However, the profit for the period declined by 45.22% to reach N147 billion from N269 billion in the corresponding period of the previous year.

MTN Nigeria’s CEO, Karl Toriola, said that factors such as persistent inflation and tough operating conditions affected consumer spending. Earlier, Legit.ng reported how the current economic hardship triggered millions of Nigerians to drop the use of multiple phone networks.

Toriola, however, revealed that the telco would expand its quota of 4G and 5G data subscribers.

He said, that the company plan to plan to roll out capex during the fourth quarter to reach 83% 4G and 10% 5G population coverage by year-end. In addition, he said that MTN Nigeria will leverage the additional 2.6GHz spectrum to enhance network capacity.

Read also

New report, expert predict naira will continue to fall in official market until 2025

According to the CEO, this will help to sustain growth in data traffic and further drive its 'Own the Home' strategy by leveraging the 5G fixed wireless access devices, mobile broadband solutions, and fiber-to-the-home connectivity.

Minister breaks silence on calls to increase MTN, Airtel, Glo, 9Mobile data, call rates

Earlier, Legit.ng reported that Bosun Tijani, the minister of communications, innovation, and digital economy, reacted to the reported plan to increase the cost of data on telecommunication lines in Nigeria.

His reaction followed a controversial report based on his interview with AriseTV.

Source: Legit.ng

Tags:
Online view pixel