Competition starts here
Mafab Communications has officially launched its fifth-generation (5G) mobile network services in Nigeria, after an initial delay due to the absence of a telecom operating license. However, it now rivals MTN Nigeria in the ultra-broadband segment and plans to roll out its services in Lagos, Abuja, Port Harcourt, Enugu, Kano, and Kaduna before expanding to other cities, reported the Ecofin Agency this week. Mafab acquired its 5G license in December 2021 during the first 5G auction organized by the Nigerian Communications Commission (NCC). The company had been awarded 100 MHz in the 3.5 GHz band for $273.6 million, along with rival MTN. However, it was unable to launch operations on time for the regulator because it lacked a unified operating license (UASL). It was then given an additional five months to prepare for the launch.
Meanwhile, MTN launched commercial 5G in Nigeria in September 2022 after conducting a pilot phase from August 24 in line with the NCC’s timetable. Earlier this month, Airtel Nigeria acquired additional spectrum, including for 5G, as part of a process initiated by NCC last October to auction off the remaining two 5G spectrum allocations. The company is expected to launch its ultrafast broadband services soon. The launch of Mafab Communications’ 5G service will spur competition in the ultra-broadband segment which is controlled by MTN Nigeria. The NCC hopes that consumers receive quality services at lower costs in a context marked by growing demand for high-speed Internet services and the emergence of new digital consumption patterns.
The Nigerian government’s digital transformation ambitions, outlined in the Nigerian National Broadband Plan and the National Digital Economy Policy and Strategy, stress the need for consumer choice and market dynamics to stimulate better services to be offered. Digital Minister Isa Ali Pantami had expressed hopes that the 5G rollout carried out by Mafab and MTN would stimulate the country’s economic and social development and subsequently generate approximately 3.6 million to 4.8 million jobs over the next ten years. “The 5G technology is not just a mobile network but represents a new culture, in a new era of connectivity where billions of devices exchange data and instil intelligence in our everyday life. It creates new, intelligent systems; and it can help to develop new advanced manufacturing models,” said Musbahu Bashir, chairman of Mafab Communications.