MainOne, MTN Cloud and RackCenter should invest efforts to build critical building blocks of computing elements, the primitives, in their data center businesses with specific focus on Nigeria and Africa. This will help them attract developers/partners to expand their operations. The promise is economies of scale through higher adoption of their platforms. As this adoption happens, these companies can enjoy massive “tax” which is simply collection of fees imposed on companies that depend on their platforms. Africa-themed primitives like procurement primitives, anti-corruption primitives, etc will be enablers for this differentiation in the market.
How GTBank Is Winning With “Primitives Model” In Nigerian Banking Sector
In this videocast, I discuss the primitives model which is focusing on perfecting the basic components of any business model or technology architecture. And then make it available for units, partners and developers to use those pieces with ease and flexibility. In GTBank, there is a high level of autonomy when you are working with their technology teams. The bank is finding success by building small efficient units in both its business processes, models and technologies for partners. The bank invests time and efforts to get the basic elements, the primitives, of any section of its business right, and then quickly scale them across platforms and operations.
NCC Issues Statement On Etisalat Nigeria Takeover, Banks Meeting Vodacom/Vodafone For Sale
With the takeover of Etisalat Nigeria by consortium of banks in Nigeria, the Nigerian Communications Commission, NCC,has issued a statement reassuring subscribers of continued service integrity from the network.
My Tony Ojobo, NCC Director, Public Affairs, issued a statement late Tuesday, that reads in parts:
The Commission has taken proactive steps to cushion the impact of the takeover. This is without prejudice to the ongoing effort between Etisalat and the banks toward negotiated settlement.
In view of the recent development, NCC wishes to reassure all stakeholders in the telecommunications sector in particular the subscribers on the Etisalat Network that the Commission will ensure that the integrity of Etisalat Network is not compromised
The statement also reminded Etisalat and the banks what they cannot do with the collapsed company, owing to the conditions attached to the licensing.
“Sub section 1 – The grant of a license shall be personal to the licensee, and the license shall not be operated by, assigned, sub-licensed or transferred to another party unless the prior written approval of the Commission has been granted;
Sub section 2 – A licensee shall at all times comply by the terms and conditions of the license and the provision of this Act and its subsidiary legislation.
This means that any change in Etisalat Nigeria license must be approved by NCC. It also means that rumored plan for the bank to sell to an European telecom operator may not happen without the blessing of NCC. An European telecom giant has been in Nigeria since last week working with the banks for possible sale. Vodacom/Vodafone is rumored to be the firm.
Great Technology Companies Deploy “Primitives Model” For Scale
In this videocast, I explain why every organization especially the ones that want to build platforms must have “primitives model” as an anchor of their strategies. With this model, it it easier to scale and enjoy economies of scale by simplifying the processes of making things. This works in both business models and technology architectures. When you break things into the simplest computing components or processes, it will be easier to re-organize them with higher flexibility and speed. That flexibility brings new ideas and innovation in firms. It also helps developers and partners in your platforms to adopt your systems and innovate faster.
Etisalat Nigeria Fails – Access Bank. Other Banks Take Over On $1.2 Billion Debt
Etisalat Nigeria has collapsed. A consortium of banks, led by Access Bank PLC and other Nigerian and foreign banks, has taken over the management of Etisalat Nigeria, effective June 15.
The takeover followed the collapse of the effort by Emerging Markets Telecommunications Services, EMTS, promoted by Hakeem Bello-Osagie, to reach agreement with the banks on debt restructuring plan in the protracted debt impasse.
However, EMTS Holding BV, established in the Netherlands, has up to June 23 to complete the transfer of 100 percent of the company’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks.
Etisalat Group, the parent company of Etisalat Nigeria, announced the takeover on Tuesday in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.
The filing, with reference number Ho/GCFO/152/85, and dated June 20, 2017 signed by Etisalat Group Chief Financial Officber, Serkan Okandan, said efforts by EMTS to restructure the repayment of the syndicated loan by a consortium of banks to Etisalat Nigeria collapsed.
“Further to our announcement dated 12 February, 2017, Emirates Telecommunications Group Company PJSC, “Etisalat Group” would like to inform you that Emerging Markets Telecommunications Services Limited “EMTS” (“the company), established in Nigeria and an associate of Etisalat Group with effective ownership of 45% and 25% ordinary and preference shares respectively, defaulted on a facility agreement with a syndicate of Nigerian banks (“EMTS Lenders”).
“Subsequently, discussions between EMTS and the EMTS Lenders did not produce an agreement on a debt restructuring plan.
“Accordingly, the Company received a default and security Enforcement Notice on 9 June 2017 requesting EMTS Holding BV (EMTS BV) established in the Netherlands, and through which Etisalat Group holds its interest in the company) requiring EMTS BV to transfer 100% of its shares in the company to the United Capital Trustees Limited (the Security Trustee”) of the EMTS Lenders by 15 June 2017.
“Subsequently the EMTS Lenders extended the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,” the filing said.
We do expect the banks to appoint Globacom to help manage this company.
Meanwhile, Etisalat Nigeria has assured customers that its services will remain available.
“We will tap into the rich, creative and innovative resources within our workforce to build a stronger business upon the stable foundation we have laid in our nine years of operations,” Vice President, Regulatory & Corporate Affairs, Etisalat Nigeria, Ibrahim Dikko
This piece was adapted from Premium Times which broke the news