The telecom market in Nigeria is presenting challenges for 9mobile. Recent data from the Nigerian Communications Commission (NCC) reveals that 9mobile, the smallest telecom operator in the country in terms of subscriber base, has experienced a decline in market share, now standing at just 1.9% with 3.2 million subscribers – its lowest point ever. Despite the decrease in market share, the number of subscribers has remained constant, indicating growth in active users for other telecom companies.
This decline has been a gradual process over the years for 9mobile. In 2015, the company held 15.7% of the market with 23.4 million users, which has decreased to 12.8 million users by 2022. A regulatory audit in September 2024 further reduced its market share to 2%, and now it stands at 1.9%, reflecting a rapid decline.
9mobile is losing subscribers to its competitors due to issues with its internet service, leading over 7,000 subscribers to switch to other network providers in the past year. The company has struggled for two years with poor internet service resulting from its inferior broadband infrastructure compared to other telecom operators.
As of September 2024, 9mobile’s download speed as an internet service provider (ISP) is reported at 17.82 megabytes per second (Mb/s), significantly lower than other competitors in the market.
Besides facing challenges with debts, loan defaults, and changes in ownership, 9mobile is finding it difficult to retain high-value customers. The company, which was once known for targeting young Nigerians, has failed to keep up with the increasing demand for faster internet among tech workers in the country.
Deolu Ogunbanjo, president of the National Association of Telecommunications Subscribers (NATCOMS), suggests that 9mobile needs fresh capital to recover. The new owner, Light House Telecom, acquired a 95% stake in 9mobile for $750 million in July 2024 but has not made significant investments in infrastructure or marketing to make the company competitive again.
There are concerns whether history will repeat itself, as a previous acquisition by Teleology in 2018 failed to revive 9mobile due to financial constraints. It remains to be seen if Light House Telecom will follow a similar path or if they can reverse the company’s fortunes in time.
For more insights into 9mobile’s journey in the Nigerian telecom market, explore our in-depth coverage of its growth and challenges.