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MTN secures 10-year license renewal

January 22, 2025

MTN secures 10-year license renewal of its 800MHz spectrum license from the Nigerian Communications Commission (NCC). This renewal reinforces MTN’s leadership in Nigeria’s telecommunications market and is set to deliver significant advantages to consumers nationwide.

MTN Nigeria’s market position and financial performance

MTN Nigeria has consistently been a leading player in the country’s telecom sector.

As of December 2023, the company boasted over 87 million subscribers, representing approximately 38.79% of the total market share—the highest among licensed Mobile Network Operators (MNOs) in Nigeria.

Despite this strong market presence, MTN faced financial challenges, reporting a loss after tax of ₦514.9 billion for the nine months ending September 30, 2024.

Additionally, the company experienced a 0.9% decrease in total subscribers, bringing the count to 77 million. These figures underscore the competitive and dynamic nature of Nigeria’s telecom industry.

Implications of the license renewal

The NCC’s decision to renew MTN’s 800MHz spectrum license for an additional decade underscores the commission’s dedication to fostering a stable and progressive telecom environment.

This renewal enables MTN Nigeria to continue offering extensive services and maintain its competitive edge.

With the extended license, MTN is poised to enhance service quality and expand network coverage, promising improved connectivity for millions of Nigerian consumers.

Regulatory adjustments and consumer impact

In a related development, the NCC has approved a 50% tariff increase for telecom operators, marking the first adjustment since 2013.

This decision aims to address the significant gap between operational costs and revenues, ensuring that service delivery is not compromised.

The tariff adjustment is expected to support operators in investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.

The NCC has mandated that operators implement these adjustments transparently and fairly, requiring them to educate and inform the public about the new rates while demonstrating measurable improvements in service delivery.

Strategic outlook for MTN Nigeria

The license renewal not only reaffirms MTN’s commitment to the Nigerian market but also enables the company to strategize for recovery and growth. With the extended license period, MTN has the stability needed to invest in infrastructure improvements and service innovations.

This is particularly pertinent in light of the recent tariff adjustments, as the company navigates economic challenges and seeks to regain its subscriber base.

The NCC’s proactive approach to regulatory policies, including the restructuring of the country’s licensing framework to accommodate emerging technologies and services, reflects its commitment to promoting a conducive environment for telecom operators to thrive.

In conclusion, the NCC’s approval of MTN Nigeria’s 10-year license renewal, coupled with the recent tariff adjustments, is a strategic move that reinforces the regulatory framework, bolsters MTN’s market leadership, and promises enhanced services for consumers.

As the telecommunications landscape continues to evolve, such regulatory decisions play a crucial role in shaping the industry’s trajectory and ensuring that it meets the growing demands of Nigeria’s populace.

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