The local unit of MTN Group’s subsidiary in Nigeria might lose out in its bid to take over the frequency spectrum of Visafone.
It would be recalled that MTN Nigeria had acquired Visafone in 2016 after the latter could not continue operations due to competitive pressure and low patronage.
To review the final handing over of the frequency spectrum 800MHz, Nigeria’s telecom regulator, the Nigerian Communications Commission, NCC, called a stakeholder hearing session.
Two of MTN’s competitors, 9Mobile and Bharti Airtel opposed the transfer of license as well as the 800MHz spectrum to the largest carrier because it could stifle competition and give undue advantage to MTN.
Head of Regulatory Affairs, 9Mobile, Mr. Chidozie Arinze, argued that the spectrum is a scarce national resource available in limited quantity and, as such could not be leased to only MTN as an operator to the detriment of other operators that do not have similar spectrum in their possession.
“It is like giving all Nigerian oil wells to one individual. The 800MHz spectrum is good for 4G operation and every operator wants to deploy 4G. If MTN is allowed to monopolize 4G, it can be priced anyhow.”
“MTN has 4G spectrum already and it wants to get this, in essence, it will be controlling 50% of the available spectrum in Nigeria.
“This is not done in line with the extant guidelines. It prohibits s control of facility that cannot be replicated by competitors. If they get this spectrum, the competitors don’t have similar spectrum and cannot have access to it.”
Airtel representative, Lucky Ubani, said the handover could lead to a monopoly in the sector. He said in “India there is a specific cap to which a single operator should acquire spectrum order wise there will be a huge disadvantage.”
Executive Vice Chairman of the Commission, Prof. Umar Danbatta, said:
“As you may be aware, the demand for spectrum has increased due to emergence of disruptive innovations such as mobile broadband, web applications, Cloud Computing (CC), Internet of Thinks (IoT) and the proliferation of smart devices among others.
“Consequently, in order to reap the benefits of effective utilisation of spectrum as well as improve operational efficiency and regulatory excellence, the commission in accordance with its mandate as enshrined in the Nigerian Communications Act, NCA, 2003 embarked on re-planning of some of the its frequency bands.”
“In line with the spirit of participatory regulation and the strategic objective of the commission to hold regular consultation with the industry stakeholders, the commission has decided to hold a public enquiry to elicit inputs and comments from stakeholders to enable us draw important and beneficial contributions from your wealth of experience and research,’’ he said.
It is not clear if the NCC would eventually cancel the acquisition or strip spectrum off the deal for the acquisition to go through.
MTN Nigeria is looking at listing on the Nigerian Stock Exchange, NSE, later this year in a listing that will see it rub shoulder with Dangote Cement Plc, the largest listed company on the exchange.
