Telecommunications giants Airtel and MTN Nigeria have paid the sum of N117.4 billion to the Nigerian Communications Commission (NCC) for the renewal of 3G spectrum licenses for 15 years.
This is coming amid their investments in the 4G expansion and the recent 5G rollout in the country.
Airtel Nigeria paid the sum of N58.7 billion for the 2×10 MHz 2100 MHz spectrum license, while MTN paid the same amount for the renewal of the 3G license.
Speaking on its renewal, Airtel said, “This investment to renew the license reflects our continued confidence in the opportunity inherent across the Nigerian market, supporting the local communities and economies through furthering digital inclusion and connectivity”.
On the other hand, MTN said, “Having accepted NCC’s offer to renew our 2100MHz spectrum for a period of 15 years, effective May 1, 2022, to April 20, 2037, MTN Nigeria has paid N58.66 billion to NCC. The 2100MHz spectrum license enables the provision of 3G mobile services on our network”.
Both companies had their previous licenses for the 3G spectrum expired at the end of April 2022. Their recent license renewal will see it valid till April 2037. Despite their investments in 3G, the two operators said they remain committed to forging ahead with the expansion of 4G networks and 5G rollout.
While there had been concerns that the operators might shut down their 3G service to concentrate their investments in the new generation networks, 4G and 5G, the 3G license renewal has no doubt doused the tension.
Investors King also understands that both companies’ recent renewal of the 3G licenses has raised hope for rural connectivity as it is a strategic effort to bridge the rural-urban connectivity gap.
Also, it is worth noting that the Nigerian Communications Commission (NCC) granted MTN Nigeria approval to rent two spectrums, from the Natcom Development and Investment Limited (NTEL), for N4.25 billion, as it plans to widen broadband services in the country.
Notably, while Nigeria and other countries in Africa are planning to pick up the pace of 5G deployment, the continent is the only region where no 2G or 3G shutdowns have been announced so far.
