The Nigerian Communications Commission (NCC) Tuesday, approved the renewal and consequent extension of the tenure of MTN’s operating spectrum in the 900MHz and 1800MHz frequency bands, despite all the controversies surrounding the issue of the huge fine slammed on MTN by the regulator.
Although the implications of the N1.04 trillion fine negatively affected MTN by drastically reducing the company’s trading shares, industry watchers believe that the renewal of MTN’s digital mobile spectrum is an indication that the NCC has no bad intentions towards the company and had issued the fine as a strict warning to end MTN’s consistent refusal to comply with its directives.
Lanre Ajayi, president, Association of Telecommunication Company of Nigeria (ATCON), told BusinessDay in a telephone conversation that “the intention of NCC was never to run MTN down as a company as the N200, 000 per active unregistered or poorly registered SIM had been agreed to a long time ago and it was not directed to MTN alone, it was applicable to all telecom operators and MTN seemed to be the only one to default.”
Speaking further on the issue of licence renewal, Ajayi said: “The issue of licence renewal and the imposed fine for failure to comply with directives are two different issues. I don’t think it has anything to do with the other. If their licence is expiring and they need a renewal, NCC has no reason not to approve the renewal as long as they meet all the requirements for a renewal to be granted. If NCC does not renew MTN’s digital mobile spectrum licence, how would the company continue to run so as to pay the fine?”
With this renewal and extension, MTN’s operating spectrum, which was issued along with the Digital Mobile License (DML) in 2001 (with an original expiry date of August 31, 2016), has now been extended to August 31, 2021.
The licence extension notification was contained in a letter, dated November 2, 2015, and signed by Umaru Dambatta, acting executive vice chairman of the NCC.
The letter read: “MTN will, however, be required to pay the sum of $94,225,152.75 (ninety four million, two hundred and twenty five thousand, one hundred and fifty two dollars, seventy five cents) as Spectrum fee for the 5 year extension period.”
It will be recalled that in February 2001, pursuant to one of the most transparent mobile license auctions in the world, the NCC issued Digital Mobile Licenses (DML) to three pioneer mobile operators. The Licenses were bundled with spectrum in the 900MHz and 1800MHz frequency bands. Amongst other authorisations, MTN also holds a Unified Access License and a 3G Spectrum License through which it provides a full bouquet of digital services to its esteemed customers throughout Nigeria.
According to Akinwale Goodluck, Corporate Services Executive of MTN, “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.”
Jumoke Akiyode
