Menu

MTN Nigeria, the country’s largest mobile operator, said on Wednesday that it has won a 2.6GHz spectrum licence for mobile broadband services after emerging as the sole bidder at an auction conducted by the Nigerian Communications Commission (NCC).

NCC announced in March that it had resumed the auction of frequency spectrum licences in the 2.6GHz band, which enables telecoms operators to offer better mobile internet and other data services.

MTN said the 10-year spectrum licence, which cost about N18.96 billion, will enable the company roll out full-range LTE (Long Term Evolution mobile broadband) services across the country, starting in Lagos and Abuja.

“We are very pleased with this development at this time, which is a further step in the right direction for Nigeria,” said Ferdi Moolman, MTN Nigeria CEO. “Indeed, MTN is fully aligned and supports the NCC’s objective to deliver broadband services to present and future generations of subscribers, in line with the National Broadband Plan of 2013.”

Earlier this month, MTN said it will increase its Nigeria capital expenditure to 11.1 billion rand ($726.13 million) in 2016, up from 5 billion rand ($328.36 million) in 2015.

The company said the increased capital spending in 2016/2017 is expected to deliver 6,173 3G sites, 5,076 LTE sites, and 850 new fibre-to-site deployments amongst other infrastructure projects. This expanded infrastructure is expected to increase MTN’s 3G-population coverage from 67.23 percent currently to 90 percent by the end of 2017.

The spectrum licence acquisition comes weeks after MTN agreed to pay N330 billion over three years to settle an NCC fine imposed on it for failing to disconnect five million unregistered SIM cards.

“This licence acquisition further demonstrates MTN’s abiding faith in the future of Nigeria and the resilience of the Nigerian economy,” Moolman said. “MTN continues to believe in Nigeria and we have expressed this belief in the level of our investment, which currently stands at approximately $15 billion and counting.”