MTN Nigeria has agreed to a N4.25 billion spectrum deal with Natcom Development and Investment Limited (NTEL).
The deal showed MTN paid N4.25 billion to lease NTEL’s 5MHz Frequency Division Duplex (FDD) in the 900MHz spectrum band and 10MHz FDD in the 1800MHz spectrum band covering 19 states.
MTN will have access to the spectrum for two years, effective from May 1, 2023, according to a statement dated May 8, 2023, which was released to the capital market authority, Nigerian Exchange Limited (NGX), on Tuesday.
The spectrum is expected to improve 3G and 4G network coverage in Nigeria . The statement disclosed that the amount agreed includes taxes, regulatory fees and ancillary charges.
In the statement, MTN confirmed “the Nigerian Communications Commission (NCC) has approved a spectrum lease transaction between MTN Nigeria and Natcom Development and Investment Limited (NTEL) for the lease of NTEL’s 5MHz Frequency Division Duplex (FDD) in the 900MHz spectrum band and 10MHz FDD in the 1800MHz spectrum band covering 19 states.
“This transaction is for a period of two years, effective 1 May 2023, at a cost of N4.25 billion, including taxes, regulatory fees and ancillary charges,” the statement reads.
MTN further stated: “The access to NTEL’S 90OMHz and 1800MHz spectrums broadens our spectrum holdings and improves our 3G and 4G user experience as coverage and capacity will be enhanced by utilising these spectrums.”
By Olalekan Fakoyejo