Nigeria’s telecommunications giant, MTN limited, has been handed a boost by the Nigerian Communications Commission (NCC).
This development came after the Nigeria Communications Commission (NCC) approved the issuance of the 800MHz (megahertz) frequency spectrum the group acquired from Visafone Communications Limited. Visafone was owned by Jim Ovia.
See Also: Biography and net worth of Jim Ovia.
The approval came after an inquiry by MTN into the issuance of the spectrum which is in a move to further enhance broadband penetration in Nigeria by 70% by the year 2024
The approval is a boost to MTN
The Johannesburg-based company has said the decision will enable it expand its network reach throughout Africa’s most populous nation, while covering potentially the rural and the unconnected regions around the country.
According to Olusola Teniola, the president of the Association of Telecommunications Companies in Nigeria (ATCON), “Any operator or carrier with this kind of spectrum being held by MTN is in pole position to become the market leader”. He emphasized that MTN, being a dominant player in the voice segment, would obviously like to maintain leadership in the data space.
The Face-off between MTN Nigeria and the Federal Government
It can be recalled that the largest carrier in Africa – MTN – with over 67 million customers in Nigeria, was for a long while subject to the federal government and the regulator’s (NCC) censure. The failure of the carrier to disconnect subscribers with improper registration details led to the telecoms giant being fined over $5 billion.
The case was settled for $1 billion after the company agreed to sell its shares in the Nigerian stock market. The listing and start of sales on the local bourse are slated for a later date in 2019.