The Nigerian Communications Commission (NCC) has approved the renewal of MTN’s operating spectrum in the 900MHz and 1800MHz frequency bands, and that of Airtel Nigeria Limited for the sum of $202.2m.
The new licences, which will expire in 2021, consolidate the Digital Mobile Licences (DML) and the Unified Access Licences that the two pioneer Global System of Mobile communications operators obtained from the Nigerian Communications Commission in 2001 and 2006, respectively.
While MTN has up to December to pay the sum of $94.2m, it was learnt that Airtel has already paid $108m for the renewal of its DML licence.
The licence extension notification was contained in a letter dated November 2, 2015, and signed by the acting Executive Vice Chairman of the NCC, Prof. Umaru Dambatta.
“MTN will, however, be required to pay the sum of $94,225,152.75 (N1.9tn) as spectrum fee for the five year extension period,” the letter stated.
The DML licences that proceeded from the spectrum auction held by the NCC in 2001 expire in February 2016 and the operators are required by law to apply for their renewal six months before the expiration if they so wish.
In 2006, the NCC issued the Unified Access Licences to the operators which will expire in 2021. The unified licence offers the operators the chance to offer any kind of services in the telecommunications industry unlike the DML that limits them to GSM services.
In his remarks, MTN's Corporate Services Executive, Akinwale Goodluck, said: “We view this extension as a demonstration of confidence in MTN’s capacity to continue to provide ground-breaking and innovative services to its customers, and another milestone in the evolution of the Nigerian communications industry.”