The Nigerian Communications Commission (NCC) has granted Airtel Networks Limited (Airtel Nigeria) additional spectrum in exchange for N146 billion. This will allow the telco to roll out 5G services and further develop its current services.
The acquisition was announced by Airtel Africa Plc, the parent company of Airtel Nigeria, in a regulatory filing at the Nigerian Exchange (NGX).
Yesterday at the NGX, the share price of Airtel Africa increased by 5.16 percent, or N80 per share, to close at N1,630. The largest company on the stock market is Airtel Africa.
According to Airtel Africa, it paid the NCC $316.7 million in total, payable in naira, to acquire 100 MHz of spectrum in the 3500 MHz band and two 5 MHz blocks of spectrum in the 2600 MHz band.
Nigeria is Airtel Africa’s largest market, with a presence in 14 African nations, and has significant growth potential.
The additional spectrum, according to Mr. Segun Ogunsanya, Chief Executive Officer of Airtel Africa Plc, will support the group’s investments in network expansion for both mobile data and fixed wireless home broadband capability, including 5G rollout. This will result in significant capacity to handle the nation’s ongoing rapid data growth and provide an outstanding customer experience.
He said that after deploying a fully modernized network that allowed for a four-fold increase in data traffic over the previous three years, the company had led the industry in offering affordable 4G services across the nation.
He claims that Nigeria still has a low data customer penetration rate, which presents a sizable opportunity for future growth.
“Nigeria is a market with significant room for expansion in mobile services in the future. The group’s strategic priority is to invest in new technologies and regional infrastructure to support this growth, which will enable us to offer dependable and reasonably priced services to local communities across the nation.
In order to achieve these goals, 5G is essential, and Ogunsanya said, “We look forward to launching new services to drive further digitalization across the country, facilitate economic progress, and transform lives throughout Nigeria.”
The purchase of 5G spectrum, he explained, will support the group’s growth strategy by enabling the rollout of faster connectivity to improve customer service and hasten the digitalization of consumers, businesses, and the public sector.
Higher speeds, lower latency, significant network capacity, and an improved user experience were among the main advantages he listed for 5G.
He emphasized that the rollout of 5G will hasten the availability and effectiveness of fixed wireless access products throughout the nation, assisting Airtel Nigeria in moving closer to achieving the goals of the National Broadband Plan.
He promised that the purchase of 2600MHz spectrum would strengthen the group’s already dominant spectrum position in the market, enhancing network capacity and providing a growth opportunity that would be future-proof.
