Omanghana
Scancom Plc, operators of MTN Ghana, has secured two lots in the 700 MHz spectrum band after emerging as the sole qualified applicant in the National Communications Authority’s latest spectrum-licensing process.
According to the NCA, three lots were available in the 700 MHz band, but a single applicant could receive a maximum of two. MTN applied for the permitted maximum and successfully passed the regulator’s eligibility, technical and financial assessments.
The two lots generated a combined license fee of $100.9 million, bringing the allocation process for the band to a close. Although some initial media reports cited $109.9 million, the NCA’s official statement confirms the final amount as $100.9 million.
The award forms part of a broader exercise to assign spectrum in the 700 MHz, 2.3 GHz and 3 GHz bands for mobile broadband services, including 5G.
The 700 MHz band is particularly valuable to mobile operators because its signals can travel over long distances and penetrate buildings more effectively than higher-frequency spectrum. This makes it suitable for expanding network coverage in rural areas and improving indoor connectivity.
The NCA said the process for the other two spectrum bands had not yet been completed.
Five lots were made available in the 2.3 GHz band, but qualified applicants applied for only four. The band was consequently declared undersubscribed. Telecel Ghana and Goal Telecommunications Limited were identified as the qualified participants in that category.
The 3 GHz band attracted demand exceeding the available spectrum. MTN Ghana and Telecel Ghana jointly applied for four lots, although only three were available, requiring the allocation process to proceed to its next competitive stage.
The regulator said it would announce the final results for the 2.3 GHz and 3 GHz bands after completing the remaining procedures under the Request for Applications.
MTN’s acquisition has also renewed discussion about competition in Ghana’s telecommunications industry. The company was designated as having Significant Market Power in 2020 because of its dominant position in the voice and data markets.
Industry observers are expected to monitor how the additional spectrum affects network quality, data prices and the ability of smaller operators to compete. The NCA will also face pressure to ensure that the allocation promotes investment and wider 5G coverage without further weakening competition.
The spectrum award represents a substantial investment by MTN Ghana and could strengthen its capacity to deliver faster and more reliable mobile broadband services. Its wider effect on consumers and competing networks will depend on the company’s deployment strategy and the regulatory safeguards applied by the NCA.
Source: Omanghana
