The telco has also been declared by NCC as the winner of its auction for a 10-year frequency spectrum licence for the 2.6GHz band, which is expected to “guarantee superior performance for wireless networks, especially 4G internet services”.
According to a statement released on Tuesday by Ferdi Moolman, chief executive officer of MTN Nigeria, the company paid N30 billion in addition to the N50 billion paid earlier in the year.
“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 said.
He also said 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 had been issued a letter of award.
He said MTN had also built the most extensive private fibre optics superhighway in Africa and the Middle East, covering approximately 16,000 kilometres, longer than the distance from Indonesia (Asia) to Argentina (South America).
“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,” Moolman added.
“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.”
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.
MTN’s success in this auction therefore gives the telco the opportunity to deliver global mobile broadband and LTE 4G services to over 60 million customers in Nigeria.
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 10% increase in broadband penetration is associated with a 1.4 percent increase in GDP growth in developing markets.
Hence, the knock-on effect on individuals, businesses and multiple sectors of the economy signal far reaching implications for socio-economic growth and development.
“We are very pleased with this development at this time, which is a further step in the right direction for Nigeria,” Moolman said.
“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.
“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.”
