The fate of 9mobile still hangs on the balance

by | Apr 17, 2018

The acquisition process of 9mobile is taking a new turn as Teleology Holdings is expected to undergo exercises to test its technical and financial capabilities.

According to the Nigeria Communications Week, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Umar Danbatta said that the commission will look into the technical capacity of Teleology before approving the acquisition.

Umar claims that the technical evaluation would be after the Central Bank of Nigeria CBN) is done appraising the financial standing of the company.

“The license and operational spectrum will not be transferred if a preferred bidder falls short of the technical evaluation of NCC. So far, NCC is yet to conduct the technical evaluation,” Danbatta said.

Advertisement

We recently reported that NCC confirmed the $50 million from Teleology Holdings as down payment to seal the acquisition of 9mobile. An announcement that came as a surprise, because the commission alongside CBN had denied an earlier news about a down payment.

The payment of the remaining $450 million is not all that’s required for Teleology Holdings. The company needs to scale the financial and technical capacity hurdles. It appears both CBN and NCC are putting the cart before the horse. One wonders what would have happened if the preferred bidder had completed the payment few days after the initial down payment.

This reechoes the concern about the Nigerian government’s interest in the entire process. Or we can just conclude that NCC wants 9mobile to be acquired by the reserved bidder — Smile Communications?

Danbatta further claimed that the preferred bidder emerged with the full participation of the commission. But the new development about the evaluation process states otherwise.

Since both government agencies have been a part of the process from the beginning, the question that comes to mind is whether they didn’t do their homework before and during the bidding process

The ground on which NCC can examine the technical capacity after a down payment has been made is that the bidding process was a free-for-all and doesn’t point out the required technical capabilities at the initial stage.

As it stands now, the fate of 9mobile hangs on the outcome of the evaluation process.

Yinka Awosanya
Yinka Awosanya

Mobile & African Tech Enthusiast │ Data Analyst │ Music

Advertisement


Are you in tech and you are looking at getting a foreign remote job or you want to move abroad? Fill this form and you will get the BEST resources to help you get that high paying remote job as well as japa easily! WAGMI!

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

Reclaiming stolen African artefacts

Reclaiming stolen African artefacts

On #TechpointDigest, Victoria Fakiya (@latoria_ria) discusses how Traction wants to stop fake alerts, Canza Finance’s journey, Esaal’s $1.7m seed round, and JABU’s $15m series A.

[PODCAST] Relooting African art with NFTs

[PODCAST] Relooting African art with NFTs

What do you think about an NFT project that wants to reclaim Africa’s lost artefacts? Well, the editorial team had some interesting thoughts, and you can listen to this and other stories on today’s episode of #TechpointAfricaPodcast.

$2 million to drive learning via WhatsApp 

$2 million to drive learning via WhatsApp 

On #TechpointDigest, we discuss how major players in the African mobility space can change the mobility narrative, FoondaMate’s $2 million funding, Twitter Create, and AMP’s $5.6 million seed round.

[PODCAST] Taxing calls to give you healthcare

[PODCAST] Taxing calls to give you healthcare

The Nigerian government wants to tax phone calls to provide better healthcare. In today’s edition of the #TechpointAfricaPodcast, we discuss possible implications and upsides to this.

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Blockchain Explorer

Analysis oninnovation, regulations, and trends inthe blockchain sector, as it concerns Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap