Airtel Nigeria Announces Payment Of $316.7m For 5G Spectrum

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Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, announces that its Nigerian subsidiary, Airtel Networks Limited (‘Airtel Nigeria’), has purchased 100 MHz of spectrum in the 3500MHz band and 2x5MHz of 2600MHz from the Nigerian Communications Commission (NCC) for a gross consideration of $316.7m, payable in local currency.

This additional spectrum will support our investments in network expansion for both mobile data and fixed wireless home broadband capability, including 5G rollout, providing significant capacity to accommodate our continued strong data growth in the country and exceptional customer experience.

 Airtel Nigeria is Airtel Africa’s largest market, with significant growth potential. The company led the industry in providing affordable 4G services across the country following the deployment of a fully modernised network which facilitated a 4-fold increase in data traffic over the last three years.

The penetration of data customers in Nigeria remains low, providing significant opportunities for future growth.

“The acquisition of 5G spectrum will underpin our growth strategy by enabling the launch of higher speed connectivity to enhance customer service and accelerate digitalisation for consumers, enterprises and the public sector.”

 “The key benefits of 5G will include higher speeds, lower latency, significant network capacity as well as an improved user experience. Furthermore, the deployment of 5G will accelerate the availability and efficiency of fixed wireless access products across the country, contributing towards Airtel Nigeria’s progress in meeting the National Broadband Plan targets

According to a statement signed by Simon O’Hara, Group Company Secretary, and presented on the floor of the Nigeria Stock Exchange, it reads: ”The acquisition of 2600MHz spectrum will complement our already strong spectrum position in the market to enhance network capacity and future proof our growth opportunity.”

 Segun Ogunsanya, CEO of Airtel Africa commented: “Nigeria is a market with enormous potential for future growth in mobile services. Investment in new technologies and local infrastructure to enable this growth is a strategic priority for the Group and will ensure we are able to provide reliable and affordable services to local communities across the country. 5G is critical to these ambitions, and we look forward to launching new services to drive further digitalisation across the country, facilitate economic progress and transform lives across Nigeria.”

Airtel’s 5G licence acquisition increases the number of 5G licencees in Nigeria to three. In 2021, MTN Nigeria and Mafab Nigeria Communications Limited won the two available lots of 100 MHz TDD slots of 3.5 GHz band

MTN has since launched its 5G network in Lagos, Abuja, Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri. But it is not yet clear if Mafab has launched its services.

As of August 2022, Mafab revealed that it was set to miss the NCC’s 5G rollout commencement date of August 24, 2022. According to it, the commission had granted it a five-month extension to roll out its 5G because of delays in receiving its Unified Access Service Licence and Numbering plan.

When asked if the firm has launched, a source confirmed that the firm has now launched 5G services on some sites and have an official announcement soon.

The source said, “There are some live sites now. Some are in Lagos. There should be an announcement before the last day of the month.”

In December 2022, the Chief Operating Officer, Association of Telecommunications Companies of Nigeria, Ajibola Olude, had told our correspondent, “Mafab is rolling out this month. It is confirmed. They will use existing infrastructure from IHS towers and the rest. They will roll out this month (December).”

Olusola Bello

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