CEM REPORT, TELECOMM | MTN Nigeria has renewed its 3G licence for another 15 years while it has received approval for a spectrum lease transaction from the Natcom Development and Investment Limited (NTEL).
MTN Nigeria in a disclosure said the deal would cost N4.25 billion, inclusive of taxes, regulatory fees, and auxiliary charges, adding that the deal had been approved by the Nigerian Communications Commission (NCC)
Details of the deal reveal that the lease is for 2 years, starting May 1st, 2023.
The deal would see enable MTN Nigeria to lease two spectrums from NTEL (5HMz Frequency Division Duplex and 10HMz FDD) which cover 19 states in Nigeria.
MTN’s renewal of its 2100MHz spectrum cost the company N58.66 billion according to the disclosure.
MTN Nigeria CEO, Karl Toriola said the lease and renewal are in line with the company’s Ambition 2025 strategy. He added that the 3G renewal takes effective from 1 May 2022 to 30 April 2037.
“This is a significant milestone in delivering our Ambition 2025 strategy. The access to NTEL’S 90OMHz 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.”
With the 5G network and providers cutting off the 3G spectrum, MTN’s renewal of its 3G signals that it still intends to support rural areas where the 4G and 5G network hasn’t gained coverage.
The ‘Ambition 2025’ is MTN’s strategy to accelerate long-term business growth in Nigeria while leveraging emerging opportunities. Built on four key strategic priorities, Ambition 2025 informs MTN’s current and future projects as the company moves to create leading digital platforms for Africa’s progress while providing the tools to ensure the connectivity to access those opportunities.
