Airtel, MTN renew 3G spectrum licenses in Nigeria

The Nigerian Communications Commission (NCC) has approved the spectrum lease transactions for MTN Nigeria and Airtel Africa's Nigerian unit.

For MTN Nigeria, the transaction involves a lease agreement between the telco and Natcom Development and Investment Limited (NTEL) for the lease of NTEL's 5MHz Frequency Division Duplex (FDD) in the 900MHz spectrum band and 10MHz FDD in the 1800MHz spectrum band across 19 states.

The lease is effective from May 1, 2023. It will span two years and cost NGN 4.25 billion (US$9.2 million), including taxes, regulatory fees, and ancillary charges.

In addition to the spectrum lease, MTN Nigeria has also accepted the NCC's offer to renew its 2100MHz spectrum license for a period of 15 years, commencing from May 1, 2022, until April 30, 2037.

The telco had to pay NGN58.7 billion (US$127.5 million) to the NCC to secure the spectrum renewal. The 2100MHz spectrum license is crucial to continue providing 3G mobile services across the network.

Because MTN and Airtel's original 3G licenses expired last year, the NCC granted the operators ongoing use pending the conclusion of renewal negotiations. (Source: Image by Freepik)

"The access to NTEL's 900MHz and 1800MHz spectrum broadens our spectrum holdings and improves our 3G and 4G user experience as coverage and capacity will be enhanced by utilizing this spectrum," said MTN Nigeria CEO Karl Toriola in a statement.

It is also important to note that the telco recently expanded its 5G rollout in the country after it received regulatory spectrum approval back in 2021.

In that auction, MTN Nigeria acquired one lot of 100MHz in the 3500MHz spectrum band from the NCC.

Airtel Nigeria renews 2100MHz spectrum

As the original 3G licenses expired last year, the regulator granted the ongoing use of the concession pending the conclusion of renewal negotiations for both MTN Nigeria as well as Airtel Nigeria.

Moreover, Airtel Nigeria also announced that it has renewed its existing 2100MHz spectrum license with the NCC for a period of 15 years, effective from May 1, 2022, to April 30, 2037, also at a cost of NGN58.7 billion (USD127.5 million).

"This investment to renew the license reflects our continued confidence in the opportunity inherent across the Nigerian market, supporting the local communities and economies through furthering digital inclusion and connectivity," Airtel Nigeria said in a statement.

In January 2023, Airtel Nigeria also purchased 100MHz of spectrum in the 3500MHz band and 2x5MHz of 2600MHz spectrum from the NCC for US$316.7 million, payable in local currency. The telco acquired its 100MHz of spectrum in the 3500MHz band from the auction that kicked off in December 2022. Airtel was the sole bidder for 5G spectrum in Nigeria in a second round of licensing of spectrum for the next-generation technology.

At the time of the purchase, the telco said the additional spectrum will support its investments in network expansion for both mobile data and fixed wireless home broadband capability, including 5G rollout.

*Top image source: Image by wirestock on Freepik.

— Matshepo Sehloho, Associate Editor, Connecting Africa