Reports indicate that we may see wedding solemnization of two Nigeria’s telcos companies Globacom and Etisalat, recently Etisalat has been involved in some issues with 12 Nigerian banks to the point where the banks almost take over Etisalat managements but NCC saved them from the takeover.
Etisalat has also in recent times offered 5% equity stake to the banks in lieu of the loan taken from the banks but they rejected the offer.
According to last data reveled from NCC suggests that MTN has the largest subscribers data base of 60.3 million subscribers, followed by Glo 37.3 million subscribers and Airtel 34.6 million while Etisalat has the lowest base with 18Million subscribers.
Reasons why the rumor might be true – Glo to takeover Etisalat
- Globacom can significantly get the number two position by acquiring etisalat subscribers (37.3M+18M subscribers).
- Glo now currently offers the cheapest data plans, by acquiring Etisalat’s 18m subs instantly increases their avg. revenue per user.
- Revenue been generated from data connections is suddenly beginning to outweigh voice and SMS hence consolidation is expected.
This Might Definitely Happen if This Rumor is Real
- Small data players like Ntel, spectranet, Smile will do all they can to kick against the deal because it will give Globacom undue advantage thereby killing off competition.
- The merger could lead to job loss from Etisalat since it is the smaller firm.
NB:- Take this information as a rumor until when confirmed!