MTN secures its position as a license owner of the 5G technology spectrum

MTN Nigeria has been listed among the telcos who have paid the 5G license cost ahead of the Federal Government of Nigeria’s February 24 deadline. 

The Nigerian Communications Commission published this list on the 4th of February stating that those who paid the fees in full have received their licence documents for the respective telecommunications undertaking before the era of reclassification of Licences into Class and Individual Licences. 

Earlier on, a Vanguard reporter had told the media company that Mafab Communications, the second-highest bidder was yet to pay its fees as at the time of NCC’s publication.

Vanguard’s report didn’t reveal the amount paid by Telco MTN, but a rough estimate confirms a sum of N106.49bn was remitted at the prevailing official exchange rate (N415/$1). “The amount is to balance with the N7.5 billion, 10 per cent of the reserve price of $197.4 million (N75 billion) which the telco paid as an expression of interest before the auction.”

In December last year, MTN Nigeria and Mafab Communications were declared the winners of Nigeria’s 3.5GHz fifth-generation (5G) license auction. The winning bid was $273,600,000 million, with winners expected to pay on or before the set deadline of February 24th. They were required to pay in Naira at the current CBN rate.

Prof Umar Danbatta, Executive Vice Chairman of the Nigerian Communications Commission, NCC, announced the auction results, saying MTN Nigeria was the top bidder with an additional $15,900,000 million to win Lot 1, while MAFAB Communications added $11,120,000 million to get Lot 2.

The auction was fiercely contested, with three buyers actively engaging until the 11th round. The auction began at $199, 374 million, up from the reserved bid of $197.4 million.

The first round of the auction began at $199, 347,256, the second round closed at $201,367,740 million, the third round closed at $204,388,256, the fourth round closed at $209,497,962.50, the fifth round closed at $215,782,901.38, the sixth round closed at $224,414,217.43, the seventh round closed at $231, 146,643.96, the eighth round closed at $240.392,509.71,

The auction began following a brief ceremony in which the Minister of Communication and Digital Economy, Professor Isa Ibrahim Pantami, the Chairman of the Nigerian Communications Commission, NCC board of directors, Professor Adeolu Akande, and the Executive Vice Chairman of the NCC, Professor Umar Danbatta addressed the participants and observers on the importance of the spectrum auction.

Pantami recounted the trip beginning in 2019, when 5G technology was tested in Lagos, Abuja, and other Nigerian cities and deemed to be suitable and desirable for the country. He also reminded the audience that the test was followed by an inquiry into claims that the technology was harmful to their health. He stated that the investigation revealed that 5G technology posed no health risks.