Fledgling telecommunications giant, 9mobile Nigeria, is presently fighting to stay afloat amid crippling operational and financial challenges. Once a major player in the nation’s telecoms sector with over 22.5 million subscribers, the company has lost significant ground to competitors like MTN Nigeria, Globacom, and Airtel Nigeria, which are rapidly snapping up its customers.
The company, formerly owned by United Arab Emirates (UAE)-based Mubadala, entered the Nigerian telecom market in 2008 as Etisalat to compete for the then 64 million subscriber population shared by MTN, Globacom, and Airtel. With its “0809ja for Life” publicity campaign driven by musicians with strong connections to the youth, 9mobile quickly resonated with the Nigerian GSM-hungry population, especially the younger generation.
By mid-2016, 9mobile had reached the peak of its success, controlling 14% of Nigeria’s GSM market share. Unfortunately, the firm could not sustain the growth. By October 2024, the company’s fortunes had drastically declined, with its share of the market dropping to a meager 2.15%.
According to the most recent data from the Nigerian Communications Commission (NCC), 9mobile’s market share dropped to 3.4 million subscribers in October 2024 from its former high of 22.5 million subscribers (14% market share) in August 2016.
Competitors’ Performance
Unlike 9mobile, other competitors in the Nigerian telecommunications sector fared much better within the same period. As of October 2024:
•MTN Nigeria: Largest subscriber base with 80,376,120 subscribers, representing 51.09% of the market.
•Airtel Nigeria: Second-largest with 54,446,118 subscribers, representing 34.61% of the market.
•Globacom: Third with 19,108,272 subscribers, representing 12.15% of the market.
Further analysis shows that while MTN Nigeria gained 2.3 million subscribers (2.9%) month-on-month, Airtel gained 697,000 subscribers during the same period. In contrast, 9mobile lost 245,000 subscribers, while Globacom lost 45,000 subscribers.
Subscriber Porting
In September 2024, 9mobile lost 7,127 subscribers, who ported to other networks. This represents 90% of the total porting movement across networks, with MTN, Airtel, and Globacom accounting for the remaining 10%.
•MTN Nigeria gained 4,987 subscribers (63%) from porting activities.
•Airtel gained 2,205 subscribers.
•Globacom gained 664 subscribers.
9mobile, on the other hand, gained only 30 porting subscribers from other networks in the same period.
Network Downtime and Customer Complaints
The decline in 9mobile’s subscriber base has been worsened by a major network outage that began on December 14, 2024, leaving millions of customers without service. Customers reported their inability to:
•Make or receive calls.
•Send or receive text messages.
•Conduct financial transactions.
Responding to public outcry on December 18, 2024, 9mobile attributed the outage to:
1.A fire outbreak at its Main Data Centre in Lagos, which caused significant disruptions, especially in Lagos and the Southwest region.
2.Vandalism incidents in Lagos and Abuja.
3.A fiber cut on backbone links in Lagos.
The company stated that services had been restored in the North and South-South regions and assured that restoration efforts were ongoing for the remaining affected areas. Despite these assurances, many subscribers, including Business Hallmark’s reporter, remain without service. Attempts to port lines to other networks have also been hindered by 9mobile’s ongoing technical challenges.
Historical Challenges
The trouble for 9mobile began in 2016 when it defaulted on a $1.2 billion loan intended to modernize its network and refinance a $650 million facility provided by a consortium of 13 local banks. The company’s financial instability is attributed to several factors:
•Naira devaluation, which increased the cost of servicing foreign-denominated debt.
•Limited spectrum holdings, including the 1800 MHz and 900 MHz bands for 2G and 4G LTE, and the 2100 MHz band for 3G services.
•Inadequate fiber infrastructure of only 4,620 kilometers, compared to MTN’s 39,972 kilometers.
Ownership Changes
In 2017, following its debt crisis, Mubadala exited the Nigerian market, transferring its 45% majority holding in Etisalat Nigeria to Emerging Markets Telecommunication Services (EMTS). EMTS later rebranded the company as 9mobile.
Ownership changed again in July 2024 when LH Telecommunications Limited acquired the struggling company for $750 million. However, the acquisition has yet to reverse the company’s declining fortunes.
Financial Outlook
9mobile currently generates an Average Revenue Per User (ARPU) of ₦1,616, totaling annual revenue of ₦5.87 billion ($3.5 million). At this rate, it would take over 200 years for the new owners to recoup their $750 million investment unless there is a significant increase in revenue.
Plans for Recovery
Despite its challenges, 9mobile’s CEO, Obafemi Banigbe, has announced a $3 billion investment plan to revamp the company’s weak infrastructure. Speaking via a Zoom call, Banigbe outlined a four-phase recovery strategy:
1.Stabilization
2.Modernization
3.Transformation
4.Growth
The recovery plan aims to:
•Upgrade the company’s network infrastructure.
•Enhance customer experiences to win back lost subscribers.
•Recapture its niche market of Small and Medium Enterprises (SMEs) and the youth demographic.
•Attract investor funding to support its resuscitation efforts.
Banigbe acknowledged that a lack of investment over the past decade had severely degraded service quality. However, he expressed confidence in the company’s ability to regain its footing and achieve stability.
As 9mobile faces increasing competition from better-resourced competitors, its path to recovery remains steep. Whether the announced investments and strategies will be sufficient to revive the struggling telecom giant is uncertain. For now, 9mobile’s challenges highlight the difficulties of operating in Nigeria’s highly competitive telecommunications market.
