NNPC

5G: Airtel Loses As MTN, Mafab Acquire Nigeria’s 3.5GHz Spectrum For $547m

Airtel has lost out in the bidding for the 3.5GHz Spectrum for Fifth Generation Network Deployment in Nigeria.

After eight hours of bidding, Mafab Communications Ltd and MTN Nigeria Plc emerged the two successful winners of the 3.5 gigahertz Spectrum.

The bidding which lasted for 11 rounds was conducted by the Nigerian Communications Commission (NCC), in collaboration with the Federal Ministry of Communications and Digital Economy.

Airtel Networks Limited, Mafab Communications Limited and MTN Communications Nigeria Limited competed in the bidding.

The winning bid price for the auction was $273,600,000 for each lot of 100 MHz TDD, NCC said in a statement seen by THE WHISTLER.

MTN and Mafab are expected to pay the amount by Febuary 24 next year.

In the first Round of the auction, the bid price was fixed at $199,374,000.00; $201,367,740.00 at second Round; $204,388,356.10 at third Round; $209,407,962.50 at fourth Round and $215,782,901.30 at the fifth Round.

But the auction prices increased from the initial price held in the fifth round to $224,414,217.43 at the Sixth Round; $231,146,643.96 at the seventh Round; $240, 392,509.71 at the eighth Round; $251, 210,172.65 at the ninth Round; and $263,700,050.00 at the Round 10 of the auction exercise.

The auction process reached its peak at Round 11 when the bid price graduated to $275,904,886.25 with all the three bidders still actively participating.

NCC said, “The Main Stage of the Auction, however, ended at the conclusion of the 11th Round, with Airtel listing an exit bid of $270,000,000, while MTN posted an exit bid of $273,000,000, giving way to the Assignment Stage. At this point, Airtel had dropped off from the race having posted a lower exit bid, thus leaving Mafab and MTN as winners of the two available lots.”

The Executive Vice Chairman of NCC and Auction Overseer, Prof. Umar Garba Danbatta said, “The auction held successfully with the three bidders competing for the available two slots.

“The Commission adopted the Ascending Clock Auction format which ended after Round 11 and proceeded to the Assignment Stage. It is my pleasure to announce that at the end of the auction, Mafab Communications Limited and MTN Communications Nigeria Limited emerged as provisional licence winners.

“The winning bid price for the auction is $273,600,000 for each lot of 100 MHz TDD and the provisional winners are expected to pay the Winning Bid price, less the Intention-to-Bid Deposit, by February 24, 2022.”

MTN following the bid made an offer of $15.9m to secure slot one which is the preferred slit.

Danbatta said, “MTN Communications Nigeria Plc made an offer of $15,900,000 for the assignment of a preferred Lot, while Mafab Communications Limited made an offer of $11,120,000 for a preferred Lot.

“Hence, MTN Communications Nigeria Plc, having made the highest offer 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 Communications Limited at no extra cost.”

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