9Mobile's stake in the telecommunications market decreased to 1.9% by December 2024.
In the highly competitive Nigerian telecom market, 9mobile, the fourth-largest operator, is seeking to regain its lost ground after stagnant subscriber growth. The company, formerly known as Etisalat Nigeria, had 23.4 million subscribers and a market share of around 15.7% in 2015, but this has since dwindled to a market share of 1.99% and a subscriber base of 3.2 million.
To turn the tide, 9mobile has been suggested to employ several strategies, primarily highlighted by a recent national roaming agreement with market leader MTN Nigeria.
1. **National Roaming Agreement**: This partnership allows 9mobile to offer services in previously uncovered areas, leveraging MTN's extensive infrastructure. This move is expected to enhance 9mobile's competitive standing, improve customer retention, and foster cost-effective growth without the high costs of building new infrastructure.
2. **Infrastructure Sharing and Innovation**: Focusing on improving network quality and reliability is crucial for attracting and retaining subscribers. Investing in innovative services or partnerships could potentially lead to market differentiation and customer acquisition.
3. **Strategic Investments**: Acquiring more spectrum and investing in fibre infrastructure is essential for improving network capacity and speed, aligning with the strategies of dominant operators like MTN and Airtel.
4. **Marketing and Customer Retention**: Implementing targeted marketing campaigns to highlight the improved coverage and services offered by the national roaming agreement, focusing on underserved areas, and loyalty programs to enhance retention and attract new subscribers are also key strategies.
Potential price reductions could help 9mobile remain competitive in the market. Industry insiders stress that for 9mobile to address its challenges, it must focus on modernizing its network and improving customer acquisition efforts.
Since taking over in July 2024, Light House Telecom, the new owners of 9mobile, have appointed a new chief executive and chief operating officer for the company. However, the lack of capital for new initiatives puts 9mobile at risk of falling further behind its competitors who continue to invest in expanding their services. The lack of capital investment is a concern given the operational challenges 9mobile is currently facing.
Recent developments suggest that the new owners might start investing money now that tariffs have increased. However, no new deployments or maintenance have been made by the new owners to date.
Globacom, which faced a drop in subscribers earlier in 2024, grew its subscriber base from 19.6 million to 20.1 million by the end of the year, indicating a positive trend in the market. Airtel also grew, reaching 56.6 million subscribers in December, while MTN Nigeria increased its share to 51% with 84.6 million subscribers.
As 9mobile moves forward, the success of its strategies will be closely watched in the competitive Nigerian telecom market.
To fund its modernization and expansion, 9mobile could explore financial opportunities such as funding from venture capitalists, banks, or technology-focused investors in the finance industry.
Leveraging technology advancements, 9mobile could collaborate with tech companies to develop mobile applications aimed at enhancing customer experience and improving network efficiency.
By securing sufficient funding and implementing cutting-edge technology, 9mobile could position itself as a technological leader within the Nigerian telecom industry, ultimately helping it gain a competitive edge and regain lost ground.
