MTN paid US$67m to win 4G spectrum on no contest basis

Business News of Thursday, 3 December 2015

Source: adomonline

Ebenezer Twum Asante — CEO MTNEbenezer Twum Asante – MTN Ghana CEO

Adom News can confirm that MTN won the 2x10MHz spectrum block in the 800MHz band on no contest basis because the three others did not even show up for the auction.

Contrary to earlier reports that all four paid the 10 percent initial deposit to qualify for the auction, it has now emerged that only MTN paid the mandatory initial deposit. The three are Surfline Communications, Goldkey Telecoms and Migson Communications.

MTN was, therefore, the only bidder, and it had to pay the minimum price of US$67.5 million for the spectrum because there was no competition.

But the three paid their non-refundable registration fees of GHC200,000 each.

Meanwhile, the National Communications Authority has said the remaining spectrum block is still available, and it will take a decision on it going forward.

Prior to the auction, MTN assured everybody that they will roll out 4G services within six months of receiving the license.

MTN Ghana CEO, Ebenezer Twum Asante said, “we are ready, our equipment are ready, our expert staff are ready, and our customers are ready with the 4G compliant devices waiting for us to roll out the service, and we can’t wait any longer.”

It is expected that, beyond 4G services, the deployment of the 800MHz spectrum will help to improve the performance of MTN’s 3G network and also put the company in a position to roll out more innovative products and services like mobile health, mobile agriculture, mobile education and more.