Ahead of its 5G launch, Airtel Nigeria has acquired
$317 million 5G spectrum for its 4G network, this was disclosed in a statement
by the local unit of the telecom giant saying “The acquisition of 5G
spectrum will underpin our growth strategy by enabling the launch of higher
speed connectivity to enhance customer service and accelerate digitalization
for consumers, enterprises and the public sector,”
Airtel Nigeria disclosed in its statement, that it purchased 100
MHz of spectrum in the 3500MHz band and 2x5MHz of 2600MHz from the Nigeria
Communications Commission (NCC) for a gross consideration of $316.7m, as a
strategic part of its broader plan to boost Airtel Nigeria’s mobile data
network and the power of its fixed wireless home broadband.
The company hopes to gain the
needed momentum to steady its feet in the 5G technology development in
Africa’s telecom market. This recent development has already begun to attract
attention as shares in Airtel Africa rose to 5.2 per cent to N1,630 per unit on
Lagos’ Customs Street at 13:28 WAT after the news hit the market, pushing its
market value above N6.1 trillion, which is the highest value ever traded by a
public company in Nigeria.
The company is capitalizing on “the (shallow)
penetration of data customers in Nigeria” where fewer than 44 per cent of
people have access to smartphones according to a survey by the Alliance for
Affordable Internet.
Airtel Nigeria has also assured its customers
that this purchase will increase the ease of connectivity at a much faster rate
to enhance access to the digital world for its consumers. Segun Ogunsanya, CEO
of Airtel Africa disclosed that Nigeria is a market with enormous potential for
future growth in mobile services,”
while adding that
“Investment in new technologies and local infrastructure to enable this growth
is a strategic priority for the group and will ensure we are able to provide
reliable and affordable services to local communities across the country,”
Airtel Nigeria had lost
an earlier chance to run 5G technology when it couldn’t secure one of the two
available licenses auctioned by the Nigeria Communication Commission in
December 2021, which was secured by MTN and Mafab, and although the MTN has
already begun operating its 5G technology in August 2022, Mafab chose to extend
its launch to January 2022 due to its Mafab’s regulations.
Airtel Nigeria hopes to
establish itself in the conversation quickly while delivering value to its
customers in Nigeria, which is the biggest market for both Airtel and MTN.
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