Airtel acquires 5G license, reiterates commitment to quality service
By Felicia Nwosu
Airtel Nigeria, leading telecommunications service provider, has added another feather to its quality service cap by joining the league of telecommunication companies with 5G spectrum, alongside an additional 4G spectrum from the Nigerian Communications Commission (NCC). The telecom giant paid $316.7 million to acquire the license.
Airtel said that the sum of $316.7m,which is payable in local currency of about N142.5 billion, was paid to NCC for 100 MHz of spectrum in the 3500MHz band for the deployment of fifth-generation network and 2x5MHz of 2600MHz to boost its fourth-generation coverage in the country.
This was revealed by Simon O’Hara, the Group Company Secretary who noted that the acquisition of 5G spectrum will underpin the company’s growth strategy by enabling the launch of higher speed connectivity to enhance customer service and accelerate digitalisation for consumers, enterprises and the public sector. With this development, the smartphone network has reiterated its commitment to improve 5G access to both rural communities and public sectors.
“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,”
This new status, no doubt, has placed the telecommunication giant network provider among the leading Telcos brands with the fifth generation licenses which include MTN and Mafab communication respectively.
Segun Ogunsanya, the Chief Executive Officer, Airtel Africa, while commending the acquisition initiative, said 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,” he said.
Recall that the 5G spectrum Reserve Price was pegged at N75bn by NCC, which led to an auction for a 5G license being conducted by the Commission in partnership with the Federal Ministry of Communications and Digital Economy. The bidding contest was held among three strong forces, which include MTN Nigeria, Airtel and a new Mafab Communications to provide and operate local and international carrier services. With the use of Ascending Clock Auction software, after the 11th round, MTN and Mafab Communications emerged winners, grabbing the license at a bid price of $273.6 million each, as against the initial $197.4 million reserve price.
Later on, Nigerian Communications Commission (NCC) granted licenses to two network providers, MTN Nigeria and Mafab Communications Limited to roll out 5G services, with effect from August 24, 2022.
However, in October 2022, the NCC put up another two slots in the 3.5GHz spectrum band for auction, to boost deployment of 5G services in Nigeria. NCC, in December 2022, confirmed Airtel as the sole bidder of the 5G licence after a payment of $27.36 million as an intention-to-bid deposit (IBD).
Meanwhile, an industry data from the NCC revealed that Airtel controls 57.38 million subscribers or 27.16 per cent of Nigeria’s telecom market.
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