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5G Network

Pricey 5G Licence Raises Speculations.
 
By: Morolake Kolade
Mon, 4 Oct 2021   ||   Nigeria,
 

The high cost associated with the purchase of the 5G licence has sparked speculations that many Nigerians as well as small operators may not be able to afford it when it launches in 2022. 
Despite the limitations of the pricey licence fee, operators are divided on whether it would affect the viability of the technology when it is launched in 2022.
According to reports, MTN, one of the major telecommunication operators in the country has conducted a successful trial of the technology with the help of Huawei, ZTE, and Ericsson. 
Airtel, another big name in the telecommunication world is also not far behind, with its own trial exercise already approved by the NCC and scheduled to take place before the end of the year. These two brands are projected to be the first to secure the licence.
Experts has said expressed that the fact that MTN and Airtel are the only two telecommunication company publicly listed in Nigeria puts them in a good position to acquire the ten-year licence.
President of the Association of Licenced Telecommunication Operators of Nigeria (ALTON), Adebayo Gbenga added that the N75 billion licence fee could prohibit smaller telecommunication operators who do not have the type of liquidity that telecom brands like MTN and Airtel commands from acquiring the licence.
 The implication of the N75 billion licence is that on a yearly basis, the operators would likely have to include about N7.5 billion in their annual budget for the next ten years. This is aside from maintaining other legacy infrastructure and overheads.
Some experts however see acquiring the licence as a strategic necessity. MTN and Airtel, for example account for 65.6 percent of the market in Nigeria, hence it would make sense that they pick up the licence for 5G. 

 

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