In telecommunications, “spectrum” refers to the range of radio frequencies used to transmit information wirelessly. So, a spectrum lease agreement is essentially a rental agreement for radio frequencies.
MTN, the leading telecommunication company in Nigeria, just renewed a worth of N4.25 billion spectrum lease agreement with NTEL. This agreement renewal was approved by the Nigerian Communications Commission (NCC).
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MTN Nigeria has been using NTEL's 900MHz and 1800MHz spectrum bands to enhance its 3G and 4G services. Now, this renewal extends the existing lease agreement. The NTEL’s spectrum services is currently covering 19 states in Nigeria.
However, do note that the initial business transaction between MTN Nigeria and NTEL is for the period of two years at a cost of N4.25 billion. It became effective on 1 May 2023 and ends on May 2025. So, this new agreement signifies that MTN renew the lease ahead of existing contract’s expiry date.
In other words, this renewal extends the lease agreement for another two years from May 2025. Starting from the effective data, the spectrum bands will cover overall 36 states including the FCT—Abuja of Nigeria. This new agreement has given MTN a nationwide access to NTEL’s spectrum network.
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In essence, this business agreement deal between MTN Nigeria and NTEL will allows MTN to meet growing data demands and enhance users experience. Furthermore, utilizing NTEL’s spectrum bands in the 36 states will strengthens MTN's competitive position in the Nigerian telecommunication market.
