…Stakeholders say firm architect of own misfortune

By Olabisi Olaleye

New board of embattled telecommunications company, Etisalat, may soon unveil a new trade name with which to continue its business in line with the three-week ultimatum issued it by Mubadala Abu Dhabi, majority shareholders in the firm.

A high ranking source close to the new board told Daily Sun yesterday, that there was no cause for alarm, stressing it was simply a false declaration that Etisalat shareholders would shut down the internet space of the network since the infrastructure and spectrum being used are based in Nigeria and not UAE.

The source who preferred to remain anonymous noted that the problem started when the network operator sold its towers to IHS at a very low price but could not meet up service payment of its crucial service carrier on the agreed date. There was also the outstanding loan and interest to offset. It was torn between paying IHS or the consortium of banks. 

“Emerging Market Telecommunications Services Ltd (EMTS), trading as Etisalat Nigeria, did not envisage recession or the fact that dollar would skyrocket when it did. It sure unbalanced its threshold and since banks could not wait forever, they swooped on the telecoms operator.”

An industry analyst, Isaac Imarong, explained that nothing would happen to the existing 21 million subscribers and that the business would survive despite the whirlwind.

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He said, “it is just a mere name. The name came with Etisalat UAE shareholders bought into coupled with the fact that Etisalat is an established international brand to help the Nigerian brand grow. The original name was EMTS and trading as Etisalat.

“The worst has happened and the new board will go out to develop and register a new name with serious marketing. It won’t affect its subscribers.”

He added that three weeks was short notice for name change, saying, “but everything they would need is domiciled in Nigeria. There is absolutely no shaking in all of this.”

Another industry analyst, Emmanuel Success, noted that Etisalat is the architect of its own misfortune because it used all its willpower to litigate cases against another brand as well as instigating the industry against the brand while it was supposed to be thinking creatively to meet the aspiration of its subscribers.

He added that even the concession given the operator as a new entrant by the regulator was not enough as it sought more litigation on why a dominant operator should acquire more data from a moribund CDMA network operator.

“Another factor was that the company is not saying the truth because it repatriated some money to Dubai at a time that was not the best for business.”

Meanwhile, in a swift reaction, Etisalat Nigeria’s Vice President, Regulatory and Corporate Affairs, Ibrahim Dikko, said EMTS, trading as Etisalat Nigeria, is aware of recent news reports regarding Etisalat Group’s withdrawal of the right to the continued use of the Etisalat brand in Nigeria by EMTS.