Airtel Africa, the parent company of Airtel Nigeria, has confirmed its payment of N58.7 billion to the Nigerian Communications Commission (NCC) for the renewal of the latter’s 2×10 MHz and 2100 MHz spectrum licences.
The company disclosed this in a corporate filing with the Nigerian Exchange Limited (NGX) and that the payment was renewal fee for another 15 years after the previous approval lapsed on April 31, 2022.
The leading telecom group indicated that the renewal move was a reflection of the company’s commitment to the Nigerian market.
It stated: “Airtel Africa announces that its Nigerian subsidiary, Airtel Networks Limited (‘Airtel Nigeria’), has made a payment of NGN58.7bn, payable to the Nigerian Communications Commission (NCC), to renew its 2×10 MHz, 2100 MHz spectrum license.
“Once renewed, the license will be valid for a period of 15 years following the expiry of the previous license (April 31, 2022).
“This investment to renew the license reflects our continued confidence in the opportunity inherent across the Nigerian market, supporting the local communities and economies through furthering digital inclusion and connectivity”, the telco added.
It would be recalled that Airtel Nigeria had in March 2020 secured the nod of the NCC to acquire Intercellular Nigeria Limited’s 10 MHz spectrum in the 900 MHZ for $94 million.
In a regulatory filing at the NGX, Airtel Africa Plc stated the amount paid to the Nigerian Communications Commission (NCC) was in line with the regulator’s spectrum trading guidelines.
It stated: “The NCC has approved the spectrum acquisition, first announced on 14 November 2019. This additional spectrum will be important in reinforcing Airtel Africa’s leading 4G position in its largest market.
“The acquisition of the 10 MHz spectrum will also provide more opportunities for data/digital services as well as home broadband services; improve both voice call quality and data experience and deepen Airtel Africa’s competitiveness in the Nigerian market, thereby making it the preferred choice for telecommunications consumers.
The CEO of the telecom group, Raghunath Mandava, was then quoted as saying in the filing that “with increasing smartphone penetration, data usage and a young growing population, Nigeria represents a significant growth opportunity in data.”
