Wednesday, June 14, 2017

Rumor: Glo to Acquire Etisalat

This may not be sounding nice but we are about to conduct a wedding solemnization of two Telco’s Globacom and Etisalat.
Though Etisalat has been involved in some earlier saga with 12 banks in Nigeria to the point where the banks almost take over Etisalat managements but NCC came to their rescue. Etisalat recently offered 5% equity stake to the banks in lieu of the loan but the banks rejected it.

Remember that
Last month Data from NCC revealed 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. Etisalat been the nicher has 18Million subscribers data base.
This is Why Glo Might be Interested in Acquiring Etisalat
1. Globacom can significantly get the number two position by acquiring etisalat subscribers (37.3M+18M subscribers).
2. Revenue generated from data is suddenly beginning to outweigh voice and SMS hence consolidation is expected. Also remember that Etisalat has a competitive advantage in its data services and a possible merger with Globacom, would enable the company to offer cheaper data services.
Glo currently offers the cheapest data plans in the country per GB, so owning Etisalat’s 18m subs instantly increases their avg. revenue per user.
This Might Definitely Happen if This Rumor is Real
>>Smaller players like Ntel, spectranet, Smile will do all they can to kick against the deal because it will give Globacom undue advantage since Globacom has dedicated fibre-optic infrastructure and afford to offer the cheapest data plans to her subscribers
>>The merger could lead to job loss from Etisalat since it is the smaller firm.
Take this info with a pinch of salt until when confirmed!

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