MTN Moves to Acquire Mafab’s $273.6m 5G Spectrum as Discussions Intensify

MTN Moves to Acquire Mafab’s $273.6m 5G Spectrum as Discussions Intensify Mafab Communications Limited, backed by Nigerian businessman, Musbahu Muhammad Bashir, is planning to sell its $273.6 million 5G spectrum asset to MTN Nigeria, THISDAY investigation has revealed. Although the discussion between Mafab and MTN remained under wraps, awaiting regulatory approval, THISDAY gathered that Mafab was willing to sell its 5G spectrum to a willing buyer, having kept the spectrum redundant for five years without putting it into proper use, since it won the 5G license auction bid in 2021, alongside MTN Nigeria. Industry sources told THISDAY that the discussions to acquire Mafab’s 5G asset by MTN were almost concluded and waiting for regulatory approval. THISDAY sent media enquiry to MTN and NCC for confirmation, but as at press time, none had responded to the enquiry. The proposed transaction covers Mafab’s 2×20 MHz Spectrum block in the 2.1 GHz band and its 100MHz holding in the 3.5GHz band, subject to regulatory approval. Mafab’s 3.5GHz license became one of Nigeria’s most closely watched telecom assets after the relatively young company emerged alongside MTN as winners of the country’s landmark 5G spectrum auction in 2021. Both companies paid $273.6 million for their respective 100MHz lots. While the proposed deal could mark a major shift in telecoms venture that once challenged established operators for a place in Nigeria’s 5G market, it is certain that the planned acquisition will strengthen MTN’s network capacity as demand for mobile data continues to grow. Nigerian Communications Commission (NCC) had in 2021 auctioned the 3.5GHz spectrum for 5G rollout, and announced MTN and Mafab as the winners in the 2021 auction. One year later, Airtel acquired its licence for 5G rollout. While MTN launched its 5G network in September 2022, Airtel launched its 5G network June 2023. Mafab, however, claimed that it launched its 5G network in January 2023, but since then, no subscriber could connect to Mafab’s 5G network, making its 5G spectrum licence redundant till date. Some Nigerians had in the past raised concerns about the capacity of Mafab to roll out 5G in Nigeria, without an existing telecom infrastructure. As at the time Mafab won the 5G spectrum bid in 2021, the company was relatively small and was not known as a telecom operator because it had no subscriber base, like other established telecoms operators in the country. It had no offices across the country and no customer care service centres where intending subscribers could go and make enquiries on their services in order to sign up on its network. Nigerians had raised questions as to the possibility of a successful rollout of Mafab’s 5G services in the country. Mafab’s spokesman, Mr. Adebayo Onibanjo, had defended Mafab’s ability to roll out 5G services in Nigeria, insisting that Mafab will ride on an existing telecom company to roll out its services to Nigerians on the 5G infrastructure and will continue to expand as the market grows. The current development has seemed to confirm the doubts about the capacity of Mafab to roll out 5G services in Nigeria, as Nigerians await the final acquisition deal of Mafab.