MTN secures $202 million 5G Spectrum licence to compete with Telecel in Ghana

Scancom PLC (MTN Ghana) has received official notice from the National Communications Authority (NCA) of Ghana awarding it key spectrum licences in the 700 MHz and 3 GHz mid-band frequencies. The move paves the way for the commercial deployment and expansion of 5G in Ghana. 

The spectrum award, announced by parent company MTN Group via a corporate filing, grants MTN Ghana a 15-year licence across two key frequency bands, with a total acquisition fee amounting to $202 million.

In detail, the first is the 700 MHz Band, a 2 lots (2×20 MHz) with a licence fee of $100.9 million, while the second is the 3 GHz Band, a 3 lots (3×50 MHz) providing 1×150 MHz bandwidth at a spectrum licence fee of $101.1 million.

“MTN Ghana is currently finalising the required formalities and payment obligations associated with the licence acquisition,” the group said in the statement, adding that “the licence payments have been incorporated into MTN Ghana’s equity free cash flow outlook.”

The company noted that the new frequency allocations will complement MTN Ghana’s existing spectrum portfolio, a move that enables the operator to significantly increase network capacity, boost service quality, and drive the 5G network across the country’s urban and rural communities.  

It added that the additional spectrum capacity is expected to play a decisive role in expanding fixed wireless access, its “connect the home” services, and delivering high-speed internet to Ghanaian internet consumers and enterprises.  

As acquiring a spectrum licence is not the same as rollout, the Group indicated that it will keep the market updated on key developments as deployment of the newly acquired spectrum gets underway. 

By the time it deployed its 5G network in Ghana, MTN would have the network presence in 7 African countries at the group level, including South Africa, Nigeria, Côte d’Ivoire, Uganda, Congo-Brazzaville and Benin, with Nigeria being its largest 5G footprint

Also read: Ghana awards 5G licence to state-owned Telecel, set for rollout by December.

MTN, Telecel push Ghana’s 5G rollout

MTN and Telecel’s 5G spectrum licence acquisition comes months after both operators entered the race for independent rights to build and deploy a 5G network in Ghana. 

Recall that last week, Telecel Ghana secured a 2.3 GHz band, for an undisclosed fee, to accelerate its 5G rollout and expand mobile broadband capacity. After securing all three bands it applied for, the partially state-owned telecom company will roll out the services by December 2026. 

Before the auction, the Ghanaian government revoked the licence that gave Next Gen InfraCo (NGIC) exclusive rights to provide the network after the company fell short of the set target. The termination of the exclusive concession granted to Next Gen InfraCo comes eight years before its scheduled 2034 expiry.

With MTN and Telecel now in the front seat by owning their own 5G networks, they have a chance to offer high-speed internet to over 41 million Ghanaian telecom subscribers. Both operators will aim to control the market and help the government achieve its ambition of reaching 70% 5G population coverage by 2027, the year the West African country clocks 70.