Afrigather The Nigerian telecoms business ought to count on to see a brand new telecom operator someday this 12 months, the chief vice chairman of the Nigerian Communications Fee (NCC) mentioned final week after Mafab Communications, a little-known telco firm shared its launch plans with the commission.
In December 2021, Mafab was one among two firms to win a 5G licence at an public sale with a bid of $273.6 million, beating out Airtel Nigeria, one of many nation’s high telecom operators. The corporate has now confirmed it’ll construct its infrastructure from scratch slightly than purchase or lease from present gamers. However first, it might want to kind out some regulatory points.
“The Common Entry Sẹrvice License (UASL), which is the operational license for the 5G spectrum, and might want to pay a ₦374.6 million price,” mentioned Rotimi Akapa, Associate and Head of Telecommunications, Media, and Know-how, Advocaat Regulation Apply.
“The UASL license will enable them to offer all telecommunications providers similar to 2G, 3G or some other expertise,” added Akapa.
Launched in 2005, UASL covers providers similar to fastened telephony, wired or wi-fi; digital cellular (GSM) providers; worldwide gateway providers; nationwide long-distance providers; and regional long-distance providers.
Mafab was granted a UASL licence in July 2022, in keeping with one NCC supply.
Past this licence, constructing out its infrastructure will price billions of {dollars}. “I’m not positive such funding is presently obtainable regionally even when the banks have been to have an interest,” mentioned Mr. Akapa.
Mafab didn’t reply to TechCabal’s request for feedback on the time of this report.
Mafab stumbles on highway to market
Mafab has tried to go to market just a few occasions. In January 2023, it held a launch occasion in Abuja and Lagos and advised these in attendance that it deliberate to deploy its service in “just a few months.” There was no product demonstration at that occasion.
In December 2023, it started pushing out messages on its social media channels encouraging potential subscribers to purchase its 5G routers at ₦50,000. On its web site, the ‘Get Mcom 5G’ and ‘View Protection Space’ pages open to a kind the place customers are requested to fill of their recharge request.
Mafab’s entry into the market coincides with income pressures within the telecom business brought on by inflation and foreign money devaluation. Mafab’s entry would improve the variety of gamers within the telecom market to 5 and people offering 5G providers to 3. The largest winners will probably be shoppers, who would have extra community choices to pick out from and probably improvements from operators.
Moreover, it will want vital assets to obtain skilled and expert manpower. There’s additionally the matter of guaranteeing a sustainable energy era capability to run Mafab’s operations. Like each business within the nation, electrical energy makes up a large chunk of telcos’ prices. Whereas it’s anticipated that Mafab will outsource its tower must one of many operators, it’ll nonetheless shoulder a rising expense pushed primarily by vitality prices.
“The nice factor is that there are a number of choices open to them: they’ll choose to pay for the tools and software program required, enter into construct function and switch preparations, Turnkey preparations and even income share preparations,” Akapa mentioned.
Gbenga Adebayo, President of the Affiliation of Licenced Telecommunication Organisation of Nigeria (ALTON), nevertheless, mentioned the market is eagerly ready for the launch of Mafab as extra competitors is required to enhance the standard of service, which can profit the shoppers.
Two individuals who know say, Mafab is backed by rich native buyers with deep political roots within the nation.
Editor’s notice: this text has been up to date to point out that Mafab was granted a UASL licence in 2022.
