Mafab finally granted operating licence for 5G service

The Federal Government has finally granted an operating licence to Mafab Communications Limited, one of the winners of the two 3.5GHz frequency spectrums auctioned last year for the deployment of 5G service in Nigeria.

According to Nigerian Communications Commission’s (NCC) regulatory updates reviewed by Technology Times , Mafab has been granted a Unified Access Service Licence (UASL) spanning ten years for the tech firm’s planned deployment of a fifth-generation mobile network otherwise called 5G network in the country.

Mafab Communications, a relatively unknown tech firm, alongside MTN Nigeria Communications Plc emerged winners of two slots of 3.5GHz spectrum spectrums auctioned last year by NCC that saw each winner paying $273.6 million per licence.

Technology Times screenshot of the NCC website shows the listing of Mafab Communications Limited as one of the licensees for the Unified Access Service Licences (UASL) granted by the Nigerian Communications Commission (NCC).

The market for 5G services with promises of faster voice, data and video services is seen by analysts as the next phase of growth for Nigeria’s telecoms market counting 208,969,445 active phones, 152,018,551 internet subscriptions and 84,917,994 broadband connections as of July 2022, according to NCC’s data.

Why Mafab needs an operating licence

Apart from winning the frequency spectrum, the NCC auction rules had stipulated, that each winner requires an operating licence for the deployment of 5G network to offer service across the country. Unlike MTN, Mafab did not have the UASL and had to obtain the operating licence designated for the operation of the 5G network in the country, in line with the regulator’s rules.

Meanwhile, at the expiration of the August 24, 2022 deadline set for the 5G rollout by NCC, the two winners did begin commercial operation of the high-speed mobile technology network hoped to support broadband penetration in the country.

On that date, MTN announced the kick-off of a pilot service complemented with the pre-order of modem routers for the service.

Adia Sowho, MTN Chief Marketing Officer says the telco “kicked off an open 5G pilot in the lead-up to its highly anticipated commercial launch” planned for urban capitals Lagos, Abuja, Port Harcourt, Ibadan, Kano, Owerri and Maiduguri where customers “with certain enabled devices will be allowed to connect with and try out the new service where coverage is available.”

Mafab reportedly announced that it has received a five-month extension from NCC to commence the rollout of its 5G service.

“The goal remains to launch before the 5-month extension period and we will be sharing more information in the near future”, Dr Musbahu Bashir, Mafab Communications Chairman was quoted as saying while promising that the company’s 5G network would offer Nigerians higher data speed, improved reliability and availability.

According to NCC’s market updates reviewed by Technology Times , Mafab’s 10-year licence spanning September 1, 2022, through August 31, 2022, brings UAS licensees in Nigeria to eight including MTN Nigeria Communications Plc (01/08/2021-31/08/2031); Intercellular Nig Plc (01/12/2016-30/11/2026); Airtel Networks Limited (formerly Celtel Nig Ltd), (01/12/2021-30/11/2031); Gamjitel Ltd (06/08/2013-05/08/2023); Smile Communications Nigeria Limited (01/07/2019-30/06/2029); Megatech Engineering Ltd (01/10/2020-30/09/2030); NATCOM Development Investment Ltd (09/02/2016-08/02/2031) and Global Independent Connect Limited, (01/06/2018-31/05/2028).

Prof. Umar Garba Danbatta, NCC Executive Vice Chairman of NCC who doubled as Auction Overseer at the main bids held Monday, December 13, 2021, in Abuja says that beyond the $273.6 million by each winner MTN won the preferred of the two licences.

“MTN Communications Nigeria Plc”, Danbatta says, “made an offer of $15,900,000 for the assignment of a preferred Lot, while Mafab Communications Limited made an offer of $11,120,000 for a preferred Lot. Thence, MTN Communications Nigeria Plc, having made the highest offer was given the right to select its most preferred Lot and it selected Lot 1 (3500-3600 MHz), while Lot 2 (3700-3800 MHz) is consequentially assigned to Mafab Communications Limited at no extra cost.”