Airtel, a telecommunications company, has finished paying for the license for its (Fifth Generation) 5G in Nigeria. Through the Nigerian Communications Commission, the company paid the Federal Government $316.7 million for the 5G license and 4G spectrum (NCC).
This was revealed yesterday by Airtel Africa Plc, the parent company of the Nigerian subsidiary and trader of shares on the Nigerian Exchange (NGX) Limited. 5G in Nigeria.
The company stated in a regulatory notice at the NGX that it will pay the regulator $316.7 million in Naira for the 100 MHz of spectrum in the 3500 MHz band and 2×5 MHz of 2600 MHz.
Yesterday, a top NCC official revealed to The Guardian that Airtel had paid for the 5G in Nigeria license exactly two weeks prior in December 2022.
Only Airtel and Standard Network & Connections Limited (Standard Network) had registered interest in the auction of the 3.5GHz spectrum band for 5G in Nigeria rollout in the second auction as of the close of business on December 5, 2022, according to a statement from the NCC.
The commission claimed that only Airtel had paid the Intention to Bid Deposit (IBD) as required by the Information Memorandum (IM), despite Standard Network sending an email requesting a 12-working-day extension, which was unacceptable given the auction’s schedule.
According to the Commission, Airtel is the only bidder because it has complied with all requirement in the IM. There will be no more bids, and the Commission will move on to the Assignment Stage in accordance with the Information Memorandum that has been issued and that governs the licensing process. The 5G license cost $273.6 million, paid for by Airtel.
According to Airtel, the licenses will ensure that its customers receive better Internet access. The Guardian’s research revealed that as of November 2022, Airtel served 59.3 million customers, or around 27.16 percent of the 320 million connected telephone lines in Nigeria.
“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,” a part of the disclosure stated.
According to the GSM network operator, Nigeria still has a low data client penetration rate, which presents tremendous development potential.
“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 in Nigeria will include higher speeds, lower latency, significant network capacity as well as an improved user experience.”
“Furthermore, the deployment of 5G in Nigeria 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.”
“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,” it stated.”
While commenting on the acquisition, the group chief executive of Airtel Africa, Segun Ogunsanya, stated that, “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 in Nigeria 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.”
