MTN in talks to acquire Mafab’s 5G spectrum

MTN Nigeria is negotiating to acquire spectrum held by Mafab Communications, in a transaction that could lead to a significant reshuffling of 5G spectrum ownership in Niger ia’s telecoms industry.

People familiar with the discussions said the proposed transaction involves Mafab’s 5G spectrum and is aimed at moving underutilised frequencies to an operator capable of deploying them more extensively.

The transaction is still subject to regulatory and other conditions that must be satisfied before it can be concluded, the sources said.

One source said the proposed transfer reflects efforts to improve spectrum utilisation, given the limited availability of frequencies needed by telecom operators to expand network coverage and capacity.

“The goal is to ensure that spectrum is available to operators that need it and can put it to productive use,” the source said. according to the Cable.

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The discussions between MTN and Mafab are reportedly part of a wider wave of spectrum trading in the Nigerian telecommunications sector.

Megatech Engineering Limited is also in discussions with Globacom over the possible transfer of underutilised spectrum holdings, according to sources familiar with the matter.

The transactions, alongside earlier spectrum reallocations, are intended to improve the efficiency with which Nigeria’s scarce radio frequency resources are deployed, the sources said.

Mafab’s spectrum has attracted renewed attention because the company acquired it for $273.6 million during Nigeria’s 2021 auction of 3.5GHz spectrum for 5G services.

Following 11 rounds of bidding lasting about eight hours in December 2021, Mafab and MTN Nigeria emerged as the successful bidders for the two available 3.5GHz spectrum lots.

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The Nigerian Communications Commission (NCC) subsequently confirmed that both companies had paid $273.6 million each for their respective 5G spectrum licences.

MTN later paid an additional $15.9 million to secure its preferred 3.5GHz lot. Under the terms of the 5G licences, both operators were required to begin commercial rollout by August 24, 2022.

Mafab, however, did not meet the initial deadline and obtained a five-month extension from the NCC to commence deployment.

The company eventually launched its 5G network in January 2023, initially covering parts of Lagos and Abuja.

If completed, the proposed transaction would give MTN access to additional 5G spectrum capacity, while potentially transferring Mafab’s underutilised frequency resources to a larger network operator.