Tag: Mafab Communications

  • For 5G and Electoral Act, two important days in 2022 – By Okoh Aihe

    For 5G and Electoral Act, two important days in 2022 – By Okoh Aihe

    By Okoh Aihe

    There was a seeming deconstruction of reality last week. The second winner at the 5G auction, Mafab Communications Ltd, made payment of the balance of the $273.6m license fee on deadline day, February 24, 2022, thus completing the allegory of a David taking Goliath down with just an ordinary stone from a sling. In plain terms Mafab wrecked every expectation of impossibility as a rookie player by doing the nigh impossible in a field where even giants stayed with their inner cautionary voices.

    A few hours later, the people’s will prevailed as President Muhammadu Buhari signed the amended Electoral Bill into Law. The politicians have been forced to accommodate technology in the nation’s election system which they had earlier bluntly refused, holding unto straws as they journeyed to the past. There was an outrage that overwhelmed their political craftiness and personal greed. They had to eat their shame and listen to the people.

    On the above, this administration has earned a perfect score within hours as the President can at least point to something elevating, a rare feature in a country where nearly everything is on a downward spiral. For instance, the nation’s power sector is challenged extensively, and nobody is saying anything. To add more pain to that crippling difficulty, the fuel queues have returned as a crowning shame to the importation of bad fuel for which nobody will be punished. Impunity has weight and space in this administration and those who fought for power are unable to apply it to resolve problems, except to wear the appurtenances of its glory.

    I am of the opinion here that the conclusion of the 5G auction process and the signing of the amended Electoral Bill are good signs that our humanity as a people is not totally interred yet. It is a welcome development that INEC would not have to consult with the Nigerian Communications Commission (NCC) to determine if there was enough digital capacity in an environment for election results to be transmitted electronically.

    The President’s pen carries a punch. From February 25, 2022, INEC has been empowered by law to ensure that votes count and taken through secure electronic channels. I am happy the President has signed his way into glory, at least, for once.

    There will always be a nexus between telecommunications and every other sector of the economy or the entire fabric of the nation’s socio-political system. With 5G, life will be transformed and transactions supremely influenced. This is why we cry for the telecoms sector not to be unduly adulterated by political viruses.

    One can therefore understand the excitement last Thursday when the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof Umar Garba Danbatta, announced a final closure to the exercise which began December 13, 2021. The auction money was in government’s vault, waiting for the kind of justice that happens to every money that goes into the Federation account.

    “I wish to officially announce that NCC has received and confirmed payments from MTN and Mafab for their acquisition of 1 slot of 100Mhz each in the 3.5Ghz spectrum auction, which was successfully conducted by the Commission on December 13, 2021. They both met the deadline of February 24, 2022 as set by the Commission”, Danbatta informed.

    Good news can come like a flash of light in the heart of darkness. To millions of people stranded on the roadside and thousands on fuel queues, or yet for several millions of people across the nation running for cover from an undeclared war, this piece of information will have little meaning. Yet it is good execution of processes like this that helps in building better life for the generality of the people. Unfortunately, successive governments have mismanaged most of our opportunities.

    But this is Danbatta’s day and we must listen to him. “Arising from this and on behalf of the Honourable Minister of Communications and Digital Economy, the Board and Management of the NCC, I wish to congratulate the MTN and Mafab for this feat, as we look forward to accomplishing other deployment timelines in the 5G deployment roadmap, as articulated in the National Policy on 5G Networks for Nigeria’s Digital Economy”, he stated.

    This is where the real work begins, the rollout stage, time to demonstrate the real tech and financial capacity that constitute the enigmatic content of the big and the rookie operator. No insults intended here because it will really be inappropriate to weigh Mafab and MTN on the same scale, only if for the sheer reason that while the latter has operational experiences across Africa and other nations of the world, Mafab is only reading to break out of its cocoon. MTN actually paid nearly $16m to secure a preferred band.

    This writer is mindful of the words of the EVC that “we look forward to accomplishing other deployment timelines in the 5G deployment roadmap, as articulated in the National Policy on 5G Networks for Nigeria’s Digital Economy.” Much as we support this idea to the hilt, we want to recall again that there are aspects of the policy that may encumber the rollout plans of the operators. There are some personal concerns and selfish details expressed in the policy that may not support the business projections of the 5G operators.

    Thankfully, the government is promising to support their rollout efforts with good enabling environment for their operations. This is well said because rollout is going to be expensive and challenging. This is the more reason the NCC should allow the operators to rollout as per their business plans instead of directing them on places to commence services. Rollout dates and targets should take precedence over cities and states of service deployment.

    I already observed that service deployment will be expensive and challenging. For this reason, I want to suggest that Mafab, which is proving to be a giant killer, should be given some tax holiday when it commence services. The young organisation will need every support and encouragement to survive in a new terrain. I will go a step further to add that MTN’s investment in 5G be considered for tax rebate as well.

    My thinking is that the advantages of, and opportunities from 5G are so multifarious and overwhelming that the regulator must deploy every trick in the regulatory books to escalate the progress and success of the operators who are bold enough to plow in investment to introduce life-changing niche technology to the country. Yes. More housekeeping is needed to regulate the telecommunications industry with a view to providing a better and more protective business environment to those with the large hearts to bring in new funds.

    All the same, congratulations are in order for the NCC and also the Nigerian President who signed his way into the history books last week.

  • BREAKING: NCC confirms MTN, Mafab have paid for 5G licences

    BREAKING: NCC confirms MTN, Mafab have paid for 5G licences

    The Nigerian Communications Commission (NCC) has confirmed provisional winners of the 3.5 Gigahertz (GHz) spectrum licence, MTN Communications Nigeria Plc and Mafab Communications, have made their full payment of $273.6 million each for the 5G Spectrum license.

    The Executive Vice Chairman of NCC, Prof. Umar Danbatta made confirmation of the payment known on Thursday, just as the deadline set for the two winners of the spectrum auction elapsed.

    As part of the auction process emplaced by the Commission in the Information Memorandum (IM), three companies, namely MTN Nigeria, Mafab Communications Ltd and Airtel Networks Ltd submitted bids with an initial bid deposit (IBD) of $19.74 million, representing 10 per cent of the Reserve Price of the 3.5GHz Spectrum by the close of the Bid submission date of November 29, 2021.

    Following the successful auction on December 13, 2021 and the emergence of MTN and Mafab as winners, they were required to pay the balance of the bid amount of $253.86 million on or before February 24, 2022.

    However, aside the $273.6 million payment, MTN paid additional $15.9 million, being the bidding sum it offered at the assignment state of the spectrum auction, making it clinch its preferred Lot 1 (3500-3600 Megahertz-MHz) in the 3.5Ghz spectrum; while, Mafab Communications, which bided lower at the assignment stage, consequentially settled with Lot 2 (3700-3800Mhz) at no extra cost.

    Confirming the payments by the two licensees, Danbatta said: “I wish to officially announce that NCC has received and confirmed payments from MTN and Mafab for their acquisition of 1 slot of 100Mhz each in the 3.5Ghz spectrum auction, which was successfully conducted by the Commission on December 13, 2021. They both met the deadline of February 24, 2022 as set by the Commission”.

    “Arising from this and on behalf of the Honourable Minister of Communications and Digital Economy, the Board and Management of the NCC, I wish to congratulate the MTN and Mafab for this feat, as we look forward to accomplishing other deployment timelines in the 5G deployment roadmap, as articulated in the National Policy on 5G Networks for Nigeria’s Digital Economy”, Danbatta stated.

    For meeting the payment deadline, Danbatta has commended the two companies for their commitment to 5G deployment drive through their private investments, which he said, was a demonstration of the licensees’ belief in the sound regulatory environment in the Nigerian telecommunications sector.

    Danbatta also expressed appreciation to the Federal Government for its support and commitment to the deployment of 5G technology in Nigeria which, he said, will bring substantial network improvements, including higher connection speed, mobility and capacity, as well as low-latency capabilities to communications services in Nigeria.

    The Commission published a Public Notice on its decision to award two lots of 100MHz Time Division Duplex (TDD) available in the 3.5 GHz band through an auction process, to support the delivery of ubiquitous broadband services for the deployment of 5G technology in Nigeria.

    Subsequently, an Information Memorandum (IM) was issued on November 10, 2021, in which Bid Applications for the available spectrum lots were invited. By the deadline for receipt of applications on November 29, 2021, the Commission received applications from three licensed telecommunications companies, namely: Airtel Networks Limited, Mafab Communications Limited, and MTN Communications Nigeria Plc.

    The Auction held successfully on Monday, December 13, 2021 at the Transcorp Hilton Hotel, Abuja with the three bidders competing for the available two lots in which the Commission adopted the Ascending Clock Auction format that ended after Round 11, and proceeded to the Assignment Stage.

    In the auction, MTN and Mafab emerged provisional licence winners and arising from this, the winning bid price for the auction was put at $273.6 million for each lot of 100 MHz TDD. The Provisional licence winners were then directed to pay the Winning Bid Price less the Intention-to-Bid Deposit, by February 24, 2022.

    Industry stakeholders and observers have commended the Commission for the auction process, described as efficient, fair, well-organised and transparent; as well as designed to deliver the ideal outcome which saw the strongest bidders emerge as winners, raising a substantial amount for the Federal Government and setting the stage for the next phase in Nigeria’s 5G roadmap.

  • Finally NCC receives full payments from MTN, Mafab for 5G licence

    Finally NCC receives full payments from MTN, Mafab for 5G licence

    Finally, both MTN Nigeria and Mafab Communications have fulfilled their payments for the 5G spectrum auctioned by the Nigerian Communications Commission (NCC) in December 2021.

    TheNewsGuru.com (TNG) reports MTN had earlier completed its payments, while Mafab completed its payments on Thursday, following apprehension expressed by NCC.

    Nigeria raised the total sum of USD563,100,000 (roughly N231 billion) in the auction of 3.5GHz spectrum band for the deployment of 5G network technology across the country.

    The auction of the 3.5GHz spectrum band by the NCC, Nigeria’s telecoms regulators took place in Abuja, the Federal Capital Territory (FCT).

    Through the auction, the Nigerian government through the NCC offered spectrum for 5G roll out in the country in the 3.5GHz band.

    According to the NCC, the sum raised includes the prices for the right to use licences, and investment commitments tied to the band as well as the premium paid.

    TNG reports Nigeria’s main mobile operator, MTN Nigeria and a little known operator, Mafab Communications Ltd secured the 3.5GHz spectrum band auctioned by the NCC.

    Announcing the outcome of the auction, Executive Vice Chairman and Chief Executive Officer (CEO) of the NCC, Prof Umar Danbatta said the auction was won at $273,600,000 per lot.

    TNG reports the two lots auctioned by the NCC brings the total sum for the auction to $547,200,000 at the main stage of the exercise.

    Meanwhile, MTN made the highest bid of the sum of $15,900,000 at the assignment stage of the exercise to be assigned the preferred lot of lot one, while Mafab was assigned lot two at no extra cost.

    The NCC adopted the Ascending Clock Auction format for the main stage of the auction, which ended after round 11 before proceeding to the assignment stage.

    MTN, having made the highest offer at the assignment stage was given the right to select its most preferred Lot and it selected Lot 1 (3500-3600 MHz), while Lot 2 (3700-3800 MHz) is consequentially assigned to Mafab.

    TNG, meanwhile, reports Airtel as the third bidder fell off the exercise at the 11th round of the main stage of the auction.

  • BREAKING: Mafab Communications pays for 5G licence on deadline day

    BREAKING: Mafab Communications pays for 5G licence on deadline day

    Mafab Communications has finally paid for the 5G licence it won in a bid held by the Nigerian Communications Commission in December 2021.

    TheNewsGuru.com (TNG) reports a source at Mafab, who asked not to be named, confirmed this on Friday.

    This is coming after the Executive Vice Chairman (EVC) and Chief Executive Officer (CEO) of NCC, Umar Danbatta had expressed anxiety over the delay in payment by Mafab.

    “We saw your report yesterday [Wednesday]. We have paid for the 5G licence. We beat the deadline. We are now looking ahead,” the source told TNG.

    Recall that the Federal Government had in December 2021 announced successful bidders for two 3.5GHz spectra of the 5G network licences for $547.2 million.

    MTN Nigeria and Mafab Communications won the bidding and were given up till Thursday, 24th February 2022 to pay $273,600,000 each.