Concerns as MTN Nigeria Plans to Bid for Another 5G Licence

By Adedapo Adesanya

Stakeholders have expressed concerns over moves by MTN, the largest telecommunication company in Nigeria, to bid for another 5G licence next month.

During a forum organised by the Nigerian Communications Commission (NCC) on Tuesday, it was revealed that MTN Nigeria had made fresh bids ahead of the planned $273.6 million 5G-spectrum auction, scheduled for December 19, in Abuja.

The event tagged Stakeholders’ Engagement on the Draft Information Memorandum (IM) on the Auction of Additional 2 Lots of 100MHz in the 3.5GHz Band held in Lagos was convened ahead of the exercise.

The commission used the forum to further seek the industry’s input to the draft for the auction, where Lot A (3400-3500MHz) and Lot C (3600-3700MHz) are opened for the bidders.

Speaking at the event, the Assistant Director Technical Standard and Network Integrity Department, NCC, Mr Edoyemi Ogoh, said MTN “had respectfully reiterated its prior recommendations that, to ensure that all the spectrum can be assigned and used efficiently, it will be appropriate to allow successful bidders in the prior auctions of spectrum in the 3.5GHz (or indeed any other spectrum band) to participate in future awards. It is in MTN’s considered view that a cumulative cap of 200MHz in the 3.5GHz would be appropriate across all awards in the band.”

However, the stakeholders claimed that handing MTN another 5G license would make them a dominant player and would not make other players, especially Tier 2 operators, grow and compete well in the industry.

In response, the General Manager, Regulatory Affairs at the telecommunications firm, Mr Ikenna Ikeme, said the company had entered the last auction in 2021 with the expectation that it was an open market and it would be allowed to participate in other auctions should the need arise.

Adding his input, NCC Executive Commissioner, Technical Services, Mr Ubale Maska, said the telco’s request isn’t the first in the telecommunications industry as there are precedents and Nigeria is an open market.

Mr Maska listed the USA, Germany, Finland, and other countries where such had happened before now.

At the onset of Nigeria’s 5G plans, it scheduled four 5G licenses, but two lots have been licensed with MTN’s service currently functional, and the NCC hoped that by December, there would be an additional two.