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Teleology Looks for $50m to Pay Non-Refundable Deposit for 9Mobile

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Teleology, the special purpose firm that reportedly emerged the preferred bidder for the acquisition of 9Mobile has till this week to pay a $50 million non-refundable deposit as the 21-day deadline expires.

 

This is as Smile Telecoms, the reserved bidder for 9mobile is waiting eagerly to step in if Teleology fails to meet the payment deadline.

 

Smile’s US$300 million bid for the country’s fourth largest telecom provider failed to make the cut, leaving Teleology, led by Adrian Wood, pioneer Managing Director of MTN Nigeria to emerge the preferred bidder with its US$500 million bid.

 

Smile says it still has its eyes on 9mobile ifTeleology fails to pay the US$50 million deposit

 

Ahmad Farroukh, executive director, Operations, Smile Communications, a subsidiary of Smile Telecoms Holdings, has stated that Smile has all it takes to reposition 9mobile and make it attractive and competitive again, within a space of 90 days if given the opportunity to acquire it.

 

Farroukh who spoke to journalists in Lagos, argued that 9mobile deserves the best and should be sold to an existing telecoms company with the right technical expertise and financial strength to manage it and turn it around for the highly competitive market within few months.

 

According to Farroukh, Smile will bring three dimensional value to 9mobile once it is allowed to take possession of the company.

 

“The first value is that we are Nigerian company already existing in the Nigerian telecoms space. So we will come up with our existing assets to boost the 9mobile operations. We will seek the permission of NCC to flip our existing 800MHz frequency to 9mobile to enhance its operations. What we are bringing to 9mobile is huge.”

 

“The 800MHz frequency, which Smile Communications currently operates on, will be added to that of 9mobile to achieve the best frequency ever that will serve the customers better and help 9mobile to come out of its current challenges. Without exaggerating, we are sure to add additional 600 Base Transceiver Stations (BTS) of Long Term Evolution (LTE) technology, into the operations of 9mobile within a space of 90 days, if given the opportunity to acquire it.”

 

“We will from day one, integrate our existing facilities with that of 9mobile to get the company back to its old good days, when it was the best voice and data telecoms company in Nigeria. 9mobile currently has 500 BTS across the country, and by the time we add our 400 existing BTS and combine it with the 600 BTS that we can provide within 90 days, 9mobile will be having approximately 1,500 BTS, which will match the number of BTS that the largest telecoms operator in the country currently has. So should we acquire 9mobile, we will make it competitive from day one with unprecedented speed of service delivery.”

 

He added, “The second value that we will bring to 9mobile is the monetary value. We will bring in new investments from foreign financing outside Nigeria, into 9mobile to pay off its indebtedness to the banks and also pay off any other group that the company is indebted to, and we will still have enough to invest in 9mobile and make it competitive. Let me tell you that several countries around the world still believe in the Nigeria story and we will reach out to them to get fresh funds to invest in 9mobile.”

 

The third dimensional value that Smile Telecoms Holdings will bring to 9mobile, according to him, is about the company’s long standing experience in telecoms business.

 

“I have handled telecoms business in Nigeria, including being the CEO of MTN Nigeria from 2006 to 2011, before I was appointed as Director to oversee the MTN West African operations, before joining Smile Communications. Nigeria has made me what I am today and I am grateful to God and to Nigeria. In Smile Communications and Smile Telecoms Holdings, we have seasoned telecoms experts and we are bringing that expertise to 9mobile if given the opportunity to acquire it. We are convinced that our three dimensional values will make 9mobile a successful company if we are allowed to manage it,” Farroukh said.

 

On 9mobile indebtedness to banks, he stated that Smile was very much aware and had a strategy to resolve it. “Yes we are very much aware of the debt profile of 9mobile and we are capable of handling it. What we intend doing if given the opportunity to manage the telecoms company, is to split the debts and give timeframe to offset them. As for the banks who are the biggest creditors to 9mobile, we will ensure that they do not lose any money. We will enter into agreement with them on the modalities of payment and we will surely pay them. We will come up with debt restructuring for both the banks and the vendors and they will get back their money. With 9mobile, we want to be the best data centric operator in Nigeria and we are sure we can achieve it.”

 

Smile Telecoms,  it will be recalled emerged the Reserved Bidder on the sale of 9mobile handled by Barclays. The company has however expressed concerns with the way the transaction was has handled and has since written to Barclays, the financial adviser that handled the sales process on its concerns.

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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PTECSSAN Calls for call for Implementation of Executive Order on Local Contents

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Abdur-Raheem Adebayo Shittu, Minister of Communication

Private Telecommunication and Communications Senior Staff Association of Nigeria (PTECSSAN) has called for the implementation of the President’s Executive Order on local contents.

 

Oladapo Moses, president of PTECSSAN, made the call in an interview with the News Agency of Nigeria (NAN) in Lagos, alleging increase in number of foreigners working in Nigeria.

 

Moses noted that four months after the executive order was signed by President Muhammadu Buhari, there had been no blue print for its implementation.

 

NAN recalls that President Buhari signed the executive order on February 2 to improve local contents in science, engineering and technology components.

 

The order, among others, prohibits the Ministry of Interior from giving visas to foreign workers whose skills are readily available in Nigeria.

 

Moses claimed that since the order was signed, the number of expatriates whose expertise was available in the country had continued to increased.

 

He said that if the trend was allowed to continue, the plans of the current administration to create 740,000 in the country would fail.

 

He said: “The rate at which Ministries, Departments and Agencies grant expatriate quotas to foreign workers is worrisome.

 

“This is a direct abuse of the laws. Imagine an expatriate working in Nigeria as a Security Manager, Fleet Manager, Account Manager and Human Resource Manager. This is sad.”

 

According to him, telecommunication companies keep Nigerian workers as casual or outsource staff while their foreign counterparts, some of who are less qualified, are treated with full benefits.

 

He said: “This is against the laws as no Nigerian worker understudies the expatriates; rather the reverse is the case.

 

“We have companies with 30 per cent locals and 70 per cent foreigners as staff.”

 

Moses said it was wrong to believe that Nigerians in the telecommunication sector “still needed to learn forever, after over a decade of learning and teaching the supposed teachers”.

 

He said that some multi-nationals hid under redundancy policy to terminate employment of the indigenous workers only to bring in foreigners to take over their positions.

 

Moses added: “The result is that Nigerians lose their jobs to foreign workers.

 

“We urge the MDA’s to immediately work with all labour unions in the information sector to nip this development in the bud.”

 

The union leader lamented that the executive order has not been implemented and advised Nigerian telecommunication workers to wake up and be united to be able to tackle the challenge.

 

 

 

 

 

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Internet of Things Spending to Reach $1.2 Trillion in 2022- IDC

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International Data Corporation (IDC) reports on Internet of Things shows that spending will experience a compound annual growth rate (CAGR) of 13.6% over the 2017-2022 forecast period and reach $1.2 trillion in 2022.

 

The forecast is based on the latest research in the burgeoning IoT technology market, which offers business investment opportunities across a spectrum of industries and illuminated through use case implementations.

 

As the diverse IoT market reaches broad-based critical mass, innovative offerings in analytics software, cloud technologies, and business and IT services have expanded rapidly.

 

Carrie MacGillivray, group vice president, Internet of Things and Mobility, said, “The IoT market is at a turning point – projects are moving from proof of concept into commercial deployments.

 

“Organizations are looking to extend their investment as they scale their projects, driving spending for the hardware, software, services, and connectivity required to enable IoT solutions.”

 

The intersection of multiple technology domains is one key to successfully understanding and developing a supply-side product and market development strategy.

 

The IDC IoT Spending Guide is an industry defining market intelligence tool that details end-user adoption and spending across multiple segmentations.

 

Marcus Torchia, research director, Customer Insights & Analysis, said, “The latest IoT Spending Guide release fully aligns to IDC’s Industry Taxonomy.

 

“We now forecast all 20 standard IDC Industries,”

 

“As a result, we are proactively mapping IoT use cases that have segmentations in shared domains, such as in Smart Cities and Digital Transformation investment areas.

 

“As a part of these improvements, IoT supports spending forecasts for 100 use cases.”

 

Forecast highlights show that the consumer sector will lead IoT spending growth with a worldwide CAGR of 19%, followed closely by the insurance and healthcare provider industries.

 

From a total spending perspective, discrete manufacturing and transportation will each exceed $150 billion in spending in 2022, making these the two largest industries for IoT spending.

 

From an enterprise use case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29% CAGR) over the forecast period, followed by traffic management and connected vehicle security.

 

The Worldwide Semiannual Internet of Things Spending Guide forecasts IoT spending for 14 technologies across 20 vertical industries in nine regions and 53 countries through 100 use cases.

 

 

Unlike any other research in the industry, this comprehensive spending guide was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.

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ALTON Seek Policy Breather for Ailing CDMA

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Association of Licensed Telecommunications Operators of Nigeria (ALTON) has called for policy flexibility in favour of Code Division Multiple Access (CDMA) operators.

 

Engr. Gbenga Adebayo, ALTON Chairman, said in Lagos that the federal government should give the operators access to capital and other incentives to survive.

 

“With the declining CDMA operation in Nigeria, there is urgent need to help the operators remain in business in order to allow for the continuity of their operations, which has cheaper tariff than GSM service,” he said.

 

Adebayo called on telecommunications regulators to revisit the interconnect rate model and give preferential treatment to CDMA operators.

 

CDMA is a wireless communication technology that allows multiple people to use a single radio channel at the same time with little interference and very high security.

 

Adebayo said that CDMA operators still existed and had subscribers but were not as prominent as they used to be. “The fact remains that the choice of technology being used now does not favour CDMA operators,’’ he said.

 

The chairman noted that CDMA lines were mostly used in the country in the past.

 

He said that the use of the CDMA lines was reduced as a result of stiff competition with GSM operators.

 

Adebayo said that GSM operators churned out innovative and exciting products for subscribers and lowered call tariffs and SIM cards, causing decline in the number of subscribers on CDMA network.

 

Adebayo said that GSM operators’ subscriber base had continued to rise to the disadvantage of CDMA operators. According to statistics released by the Nigeria Communications Commission for 2018, active mobile telephone lines in Nigeria rose from 149 million in March to 160 million in April.

 

 

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