MTN Nigeria Communications PLC (MTN Nigeria) has announced the renewal of its spectrum lease agreement with Natcom Development and Investment Limited (NTEL), following approval from the Nigerian Communications Commission (NCC).
This renewal extends a partnership that began in 2023 when MTN Nigeria first announced that the NCC had approved a spectrum lease agreement with NTEL.
The original agreement allowed MTN Nigeria to lease two essential spectrums: a 5 MHz Frequency Division Duplex (FDD) and a 10 MHz FDD, improving connectivity in 19 states across Nigeria.
By leveraging these spectrums, MTN Nigeria aims to greatly enhance the user experience for both 3G and 4G services, while also expanding network coverage and capacity.
The renewed agreement, effective May 1, 2025, includes a two-year extension for leasing NTEL’s 5 MHz FDD in the 900 MHz band and 10 MHz FDD in the 1800 MHz band, maintaining coverage across the same 19 states.
For the remaining states, the NCC has approved a one-year lease expansion for these spectrums, effective January 1, 2025.
The disclosure stated: ‘’Additionally, the NCC has approved a one-year lease expansion of the spectrums, covering the remaining 17 states and the Federal Capital Territory (FCT), effective 1 January 2025.’’
Comments from the CEO
CEO of MTN Nigeria, Karl Toriola, expressed his satisfaction regarding the recent renewal of the spectrum lease agreement with Natcom Development and Investment Limited (NTEL).
In a statement, he emphasized the significance of this agreement, stating, “We are pleased with the renewal of the spectrum lease agreement with NTEL, which now includes coverages for all states, including the FCT.”
Toriola further elaborated on the benefits of the agreement, highlighting its impact on service quality.
He noted that the lease would enable MTN Nigeria to enhance its 3G and 4G user experience by improving coverage and capacity through the utilization of the spectrums.
He added, “This positions us to capitalize on the growing demand for data and improve the delivery of services to our customers.”
Backstory
In the second quarter of 2023, MTN Nigeria took a significant step forward by approving a spectrum lease agreement with Natcom Development and Investment Limited (NTEL).
- This strategic deal allows MTN to lease two crucial spectrums—a 5 MHz Frequency Division Duplex and a 10 MHz FDD—which will enhance connectivity across 19 states in Nigeria.
- The total investment for this transaction was N4.25 billion, a figure detailed in a corporate action filed by the company, as reported by Nairametrics.
- This amount encompasses all associated costs, including taxes, regulatory fees, and various auxiliary charges. Notably, the lease is set to last for two years, beginning May 1, 2023.
In September 2023, MTN reaffirmed its dedication to enhancing network performance with the announcement that the Nigerian Communications Commission (NCC) had approved its acquisition of a 2.6 GHz spectrum.
This new addition aims to substantially increase network capacity, ultimately elevating the customer experience by providing users with faster and more reliable service.
