N48.96bn For Fine Settlement, Spectrum Licence

• NCC confirms payment

MTN Nigeria has paid a total of N48.96 billion into the coffers of the Nigerian Communications Commission (NCC) to settle part of its N330 billion outstanding fine and the payment for a new spectrum licence.

The telecoms firm, in a statement made available to New Telegraph yesterday, said N18.96 billion was paid for the 2.6 gigahertz (GHz) spectrum licence it recently bid for and won. Also, the first payment of N30 billion in the terms of its fine settlement had already been disbursed to the NCC.

The payments were made into the telecoms regulator’s Treasury Single Account (TSA) with the Central Bank of Nigeria (CBN). A reliable management source at the NCC, who spoke with New Telegraph yesterday, confirmed the payments by the telecoms company.

“Yes, the information of the two payments was correct. They were paid into the TSA of NCC residing with the CBN,” the source said. NCC had recently declared MTN as winner of its latest auction for a 10- year frequency spectrum licence for the 2.6GHz band, which guarantees superior performance for wireless networks, especially Fourth Generation (4G) Long Term Evolution (LTE) services.

The commission also confirmed that MTN’s bid was in full compliance with the relevant provisions of the Information Memorandum (IM) for the exercise in which MTN emerged as sole approved bidder. Although, Nigeria is one of 28 African countries that currently offer 4G/LTE services, the rate of penetration is restricted to a few major cities with broadband penetration in Nigeria currently standing at 10 per cent. Nigeria’s target was to achieve 30 per cent broadband penetration rate by 2018, in line with the country’s National Broadband Plan (NBP) 2013-2018.

Already, MTN has said its success in the auction was a big boost to its plan to deliver global mobile broadband and LTE 4G services to over 60 million customers in Nigeria. In the statement, MTN Nigeria Chief Executive Officer, Mr. Ferdi Moolman, stated that: “After complying with all the requirements for the 2.6GHz auction and making the licence payment of N18.96 billion to the NCC, MTN has been issued a letter of award.

With the 2.6GHz band, we expect to roll out and provide the full range of LTE services to Nigerians, empowering Nigeria with the latest mobile broadband technology. On the payment of fine, Moolman said: “In addition to the earlier payment of N50 billion which we paid in good faith and without prejudice on February 24, this means we have now paid a total of N80 billion.”

In addition to aggressive investment, MTN said it had also built the most extensive private fibre optics superhighway in Africa and the Middle East, covering approximately16, 000 kilometres, which is longer than the distance from Indonesia (Asia) to Argentina (South America).

For Moolman, the 2.6GHz acquisition has set the stage for the rollout of 4G LTE broadband Internet services across the country, starting in the major cities of Lagos and Abuja. It would be recalled that following the reduction of the initial N1.04 trillion fine imposed on the telecoms company for violating SIM registration rule and after series of negotiations, the fine was reduced to N330 billion.

With the N50 billion ‘good faith’ payment earlier made by MTN, the NCC said the remaining N280 billion balance would be made in six tranches on a staggered payment basis to lessen the effect of the settlement on the telecoms company.

By the terms of agreement, MTN will pay N30 billion into NCC, 30 days from the date of the agreement dated June 10. Other dates of payments include March 31, 2017 (N30 billion); March 31, 2018 (N55 billion); December 31, 2018 (N55 billion); March 31, 2019 (N55 billion) while the balance of N55 billion would be paid on May 31, 2019.