By Modupe Gbadeyanka
The proposed acquisition of additional 10 MHz spectrum in the 900 MHZ band in Nigeria for a consideration of $70 million has been announced by Airtel Africa Plc, a leading pan-African provider of telecommunications and mobile money services, with a presence in 14 countries across Africa.
The deal was signed between Airtel Networks Limited (Airtel Nigeria), a subsidiary of Airtel Africa, and Intercellular Nigeria Limited, but is subject to regulatory approval by the Nigerian Communications Commission (NCC), the regulatory agency in Nigeria.
In a notice to the Nigerian Stock Exchange (NSE) today, Airtel Africa said the $70 million valuation for the spectrum excludes fees to be collected by the NCC in accordance with the NCC Spectrum Trading Guidelines.
Explaining one of the benefits of this deal, Airtel Africa said the acquisition of this additional spectrum will allow Airtel Nigeria to expand and strengthen its LTE network across the country.
“Data is a key pillar of our growth strategy, driven by increasing 4G networks and supported by the increased affordability and increasing penetration of smartphones.
“With an overall smartphone penetration of more than 35 percent and data consumption growing by 92 percent in the six months’ period ended September 30, 2019, Nigeria presents a significant growth opportunity in data.
“The acquisition of this spectrum will enable us to further deliver on this growth opportunity and continue to offer our Nigerian customers an enhanced user experience,” the CEO of Airtel Africa, Mr Raghunath Mandava, stated.
Nigeria is Airtel Africa’s largest market and in the first six months of this year, the revenue generated by Airtel Nigeria increased by 23 percent, with data growth being the largest contributor.
Data revenue increased by 76 percent during the period driven by the accelerated rollout of our 4G network, with increase in data customer base of 20.8 percent and an ARPU growth of 43 percent. During the period, 4G data usage increased by almost 20 times.
Airtel Africa, the second largest mobile operator in Africa by number of active subscribers, offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally.
The group has invested to expand its network footprint and number of 4G sites, to enhance network quality and experience.
Airtel Africa is well positioned to capture growth opportunities presented by promising underlying macroeconomic and demographic trends in a fast-growing region that is vastly underpenetrated in terms of mobile and banking services.
Its footprint is characterized by low but increasing levels of mobile connectivity, with a unique user penetration at 44 percent, highlighting the potential for growth across its footprint.
