Airtel, MTN Pays NCC N117.4bn to Renew 3G Spectrum Licences

By Dipo Olowookere

The sum of N117.4 billion has been paid to the Nigerian Communications Commission (NCC) by Airtel Networks Limited, otherwise known as Airtel Nigeria, and MTN Nigeria Communications Plc for the renewal of 3G spectrum licences for 15 years.

Airtel Africa, the parent company of the Nigerian telco, in a statement to the Nigerian Exchange (NGX) Limited on Tuesday, said it paid N58.7 billion for the 2×10 MHz 2100 MHz spectrum licence.

“This investment to renew the licence reflects our continued confidence in the opportunity inherent across the Nigerian market, supporting the local communities and economies through furthering digital inclusion and connectivity,” a part of the notice disclosed.

Airtel Africa offers telecommunications and mobile money services in about 14 countries across Africa, including Nigeria, its largest market.

On its part, MTN Nigeria, in another disclosure, said it also paid the Nigerian telecommunications regulator N58.7 billion to renew its 3G licence.

“Having accepted NCC’s offer to renew our 2100MHz spectrum for a period of 15 years, effective May 1, 2022, to April 20, 2037, MTN Nigeria has paid N58.66 billion to the NCC. The 2100MHz spectrum licence enables the provision of 3G mobile services on our network,” a part of the statement from MTN said.

In a related development, MTN said it had paid N4.25 billion, including taxes, regulatory fees and ancillary charges, to lease a spectrum belonging to Natcom Development and Investment Limited (NTEL). It is a 5MHz Frequency Division Duplex (FDD) in the 900MHz spectrum band and 10MHz FDD in the 1800MHz spectrum band covering 19 states.

According to the firm, the transaction was approved by the NCC, and it is for two years, effective May 1, 2023.

The chief executive of MTN Nigeria, Mr Karl Toriola, while commenting on the developments, said, “This is a significant milestone in delivering our Ambition 2025 Strategy.

“The access to NTEL’s 900MHz and 1800MHz spectrums broadens our spectrum holdings and improves our 3G and 4G user experience as coverage and capacity will be enhanced by utilising these spectrums.”