Wednesday, June 29, 2016

MTN Pays N18.96m For 2.6GHz Spectrum

MTN Nigeria has said that it will use its newly acquired 2.6,Ghz spectrum for which it paid N18.96 billion to the Nigerian Communications Commission, (NCC) to boost broadband internet access for over 60 million of its customers spread across Nigeria.

The South African owned telecommunications company, which officially made known its acquisition of the spectrum after weeks of speculations following the fulfillment of its payment obligations said the ten-year frequency spectrum license will guarantees superior performance for wireless networks, especially 4G LTE services.

According to the telecoms company, although Nigeria is one of 28 African countries that currently offer 4G/LTE services, the rate of penetration is restricted to a few major cities “as such, MTN’s success in this auction is a big boost to its plan to deliver global mobile broadband and LTE 4G services to over 60 million customers in Nigeria.”

It said that it also plans to use FDD networks in addition to its existing WIMAX over TDD networks, as this provides for greater consistency with existing 2G and 3G deployments.

MTN Nigeria CEO Ferdi Moolman stated that “After complying with all the requirements for the 2.6GHz auction and making the licence payment of N18.96 billion to the NCC, MTN has been issued a letter of award. With the 2.6 GHz band, we expect to roll out and provide the full range of LTE services to Nigerians, empowering Nigeria with the latest mobile broadband technology.”

The award of the spectrum by the NCC was further to an open, transparent and competitive process in which all operators - local and foreign; enjoyed equal and unfettered rights of participation in line with the NCC’s desire for transparency and ensuring a level playing field for all.
The NCC has described this spectrum as a significant trigger for a broadband revolution that will unlock benefits such as greater coverage, access, affordability and innovation, with the customer at the centre of these gains.

Studies by McKinsey have shown that a ten percent  increase in broadband penetration is associated with a 1.4 percent increase in GDP growth in developing markets. As such, the knock-on effect on individuals, businesses and multiple sectors of the economy signal far reaching implications
for socio-economic growth and development.

According to MTN’s Ferdi Moolman, the telecoms company  is very pleased with this development at this time, which is a further step in the right direction for Nigeria adding, “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.”

He explained: “This license acquisition further demonstrates MTN’s abiding faith in the future of Nigeria and the resilience of the Nigerian economy. MTN continues to believe in Nigeria and we have expressed this belief in the level of our investment, which currently stands at approximately USD 15 billion and counting. We strongly believe that there is need for significant levels of investment in broadband infrastructure and services to truly launch Nigeria into the information age. We are honoured to be the arrowhead.”

He said further that the matter of the fine imposed by the NCC has been amicably settled in the interest of all parties saying, “I am pleased to announce that the first payment of N30 billion in the terms of settlement has already been disbursed to the NCC. In addition to the earlier payment of N50 billion which we paid in good faith and without prejudice on February 24, this means we have now paid a total of N80 billion.”

Moolman disclosed that MTN has also built the most extensive private fibre  optics superhighway in Africa and the Middle East, covering approximately 16,000 kilometres, which is longer than the distance from Indonesia (Asia) to Argentina (South America).

For Ferdi Moolman, the 2.6GHz acquisition has set the stage for the roll-out of 4G LTE broadband internet services across the country, starting in the major cities of Lagos and Abuja.

In his words “Our subscribers, especially those in clustered areas such as the major cities, can expect distinct improvements in browsing speed, quality and experience. This means that they will have fast access to high definition video streaming, as well as conferencing and calling, lag-free music streaming, and improved data uploads and downloads”.

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