Finance

MTN, Mafab to pay $273.6m for 5G network rollout

How rand Merchant Bank supported MTN’s N115bn corporate bond issuance

MTN Nigeria and Mafab Communications Ltd have emerged winners of the licence for 3.5 gigahertz (GHz) spectrum auction for the deployment of the Fifth Generation (5G) network in Nigeria after a long-drawn bidding war which lasted to the eleventh round.

The executive vice chairman, Nigeria Communications Commission, Prof Umar Danbatta, who is the auction overseer said, “After the eleventh round of bidding, MTN Nigeria Plc and Mafab Communications emerged winners. The preferred winners are expected to pay the sum of $273, 600.000 for 100MHz .

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“After the Mainstage ended, the process moved to the Assuagement Stage where the bidders MTN added $15,900.000 to pick the first lot in the 3500MHz-3600MHz to emerge as the first preferred bid winner. Mafab made a offer of $11,120,000 to emerge as second bid winner and picked the second lot of 100MHz in the 3700-3800MHz bands.”

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The provision winners are expected to pay on or behalf of February 24th, 2022. The process which was transparent will substantial funds for the federal government.

A chronology of the bid showed that bidding started at the commission placed the reserve price per lot at $197,400,000 as contained in the final Information Memorandum. Round one kicked off at $199,374,000.00; round two started at $201, 367,740.00; and round three started at $204,388,256.10; round four started at $209,497,962.50; round five started at $215, 782,901.38; round six started at $224,414,217.43; round seven started at $231,146,643.96; round eight started at $240,392,509.71; round nine started at $251, 210,172,65; round ten started at $263, 017,050.00; and round eleven started at $273, 600,000.

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