Two years after receiving licence, MAFAB explains 5G operation delay

• Laments impact of FX crisis on rollout costs

Amid worry over the delay of operations two years after obtaining the Fifth-Generation (5G) network licence, Mafab Communications said that it is making steady progress on its plan.

The Nigerian Communications Commission (NCC) granted licences to MTN Nigeria and Mafab Communications Limited to roll out 5G services on August 24, 2022. The licences are valid for 10 years with the firms paying $273.6 million each for 100MHz of the 3.5GHz band.

The licensees were required to roll out service at least in a state across the six geo-political zones within the first two years. Further rollout was expected in six additional states in the third and fifth years.

Roll-out in each state is expected to be a minimum of five sites per state. In January 2023, Airtel was also licensed by the telecoms regulator. The telecommunications firm paid the NCC $316.7 million for 100 MHz of spectrum in the 3500 MHz band. Airtel also purchased 2×5 MHz of 2600 MHz to improve its 4G coverage.

While there have been efforts in terms of deployment by MTN and Airtel, nothing is forthcoming from Mafab, almost 18 months after getting the licence, raising concerns about the firm and the defence by the telecoms regulator.

After months of delay in rolling out services, Mafab publicly launched its services in Abuja on January 24, 2023, and in Lagos on January 26, 2023. At both media launches, the firm said services were targeted at six cities – Lagos, Abuja, Port Harcourt, Enugu, Kano and Kaduna.

But since the public show, nothing was heard about the service roll-out. NCC statistics as of October 2024, puts 5G penetration at 2.33 per cent in Nigeria, meaning that some 3.6 million of the country’s 157.6 million active users are using the technology.

As of the first quarter of 2024, MTN had invested over $120 million in expanding 5G coverage since it began commercial operations in the country covering over 30 cities. Airtel too boasts of significant deployment across the country.

But Mafab has reached out to The Guardian, saying its 5G journey is very much on course. The Chief Operating Officer, Adebayo Onigbanjo, said Mafab Communications is steadily advancing its 5G network rollout across Nigeria.

Onigbanjo said the firm has primarily focused on building a robust infrastructure and extending coverage in key cities such as Kano and Abuja to ensure reliable and widespread 5G access.

He told The Guardian that significant investments have been made in Radio Access Network (RAN), Transport and ⁠Intelligent Network all in a bid to enhance the firm’s 5G infrastructure, with the rollout progressing in phases.

“Our target is to build 102 operational sites in these select cities by the end of the first quarter of 2025, which will enhance connectivity in those areas,” he stressed.

Speaking on challenges confronting the sector and operators, the Mafab COO, said as with many players in the telecommunications industry, foreign exchange (FX) fluctuations have been one of the major challenges, leading to increased rollout costs compared to the initial projections.

“Despite these setbacks, Mafab Communications remains fully committed to delivering on its mandate whilst continuing to adjust and innovate to contribute to Nigeria’s digital transformation,” Onigbanjo stated.