Racing to 5G: A Battle of the Titans in Nigeria’s Telecom Market

Nigeria’s telecom market has witnessed a remarkable transformation in recent years. It is evolving from a nascent industry to a vibrant and competitive sector that plays a crucial role in the country’s economic development. The rapid growth of mobile penetration and the increasing adoption of digital technologies have created a fertile ground for innovation and investment.

As the market continues to mature, the introduction of 5G technology has emerged as a game-changer. Promising to revolutionize the way Nigerians connect, communicate, and conduct business. This new generation of wireless networks offers unprecedented speeds, low latency, and massive connectivity, paving the way for a wide range of transformative applications.

In the following sections, we will explore the competitive landscape of Nigeria’s telecom market, focusing on the key players MTN, Mcom, and Airtel. These companies have been at the forefront of the 5G revolution, vying for market share and driving technological advancements. We will delve into their strategies, investments, and the impact of 5G on their operations.

The Significance of 5G Technology in Nigeria

5G technology offers a transformative potential for Nigeria, capable of driving economic growth, improving quality of life, and addressing critical challenges. Here are some key significance of 5G in Nigeria:

• Economic Growth: 5G can fuel economic growth by enabling new industries and applications. These include smart cities, autonomous vehicles, and advanced healthcare solutions. It can also enhance productivity and efficiency across various sectors, increasing revenue and job creation.
• Improved Quality of Life: 5G can significantly improve the quality of life for Nigerians by providing faster and more reliable internet access, enabling remote education, telemedicine, and other essential services. It can also enhance public safety and security through advanced surveillance and communication systems.
• Addressing Challenges: 5G can help address some of Nigeria’s pressing challenges, such as poverty, inequality, and infrastructure development. For example, it can facilitate access to education and healthcare in remote areas, improve agricultural productivity, and enhance disaster response capabilities.
• Technological Leadership: By embracing 5G, Nigeria can position itself as a technological leader in Africa. This would attract investment, foster innovation, and strengthen its global competitiveness.

Overall, 5G technology represents a significant opportunity for Nigeria to leapfrog traditional development models and build a more prosperous and sustainable future.

Recommended Reading:

• How 5G Technology Transforms IoT, Businesses and Everyday Life
• Exploring Trends, Solutions and the Future of Unified Communications
• Information Technology and the Digital Divide

The role of MTN, Globacom, 9Mobile, and Airtel in the Nigerian telecom landscape

MTN, Globacom, 9Mobile, and Airtel have been instrumental in shaping the Nigerian telecom market, driving competition, and expanding access to communication services. These four major players have played a pivotal role in:

• Infrastructure Development: The telecom companies have invested heavily in building and expanding their network infrastructure. Including base stations, fiber-optic cables, and data centers, to provide wider coverage and improve service quality.
• Price Competition: Intense competition among these operators has led to lower prices for voice calls, data plans, and other services, benefiting consumers and driving affordability.
• Innovation: The companies have been at the forefront of technological innovation. They’ve introduced new products and services, such as mobile money, the Internet of Things (IoT), and cloud computing, to meet customers’ evolving needs.
• Economic Growth: The telecom industry has contributed significantly to Nigeria’s economic growth. Specifically, by creating jobs, generating revenue, and supporting other sectors such as e-commerce and fintech.  

As the country transitions to 5G technology, these telecom giants are poised to play a crucial role in driving Nigeria’s next phase of digital transformation. However, as the race for 5G thickens, only 3 telcos have been licensed by NCC to launch 5G services. They include MTN, Airtel, and MAFAB Communications.

The 5G Race in Nigeria’s Telecom Market

The race for 5G in Nigeria began in early 2018 when the Nigerian Communications Commission (NCC) announced the allocation of 5G spectrum. Let’s look at the chronological deployment.

Early 5G Trials and Deployments in Nigeria: A Chronological Overview

Here’s a chronological overview of how 5G services were launched by the three licensed telecom operators in Nigeria:

MTN Nigeria

• December 2021: MTN Nigeria, along with MAFAB Communications, won the 3.5GHz spectrum auction conducted by the Nigerian Communications Commission (NCC).
• August 2022: MTN Nigeria became the first telecom operator to launch 5G services in Nigeria. They began rolling out 5G networks in major cities, including Lagos, Abuja, Port Harcourt, Ibadan, Kano, and Owerri.

MAFAB Communications (Mcom)

• December 2021: MAFAB Communications secured the 3.5GHz spectrum license alongside MTN Nigeria.
• January 2023: MAFAB Communications, rebranded as Mcom, launched its 5G network. The launch ceremonies took place in Abuja on January 24 and in Lagos on January 26. The company focused on deploying 5G in six cities initially: Lagos, Abuja, Port Harcourt, Enugu, Kano, and Kaduna.

Airtel Nigeria

• December 2022: Airtel Nigeria acquired the 5G spectrum license from the NCC.
• June 2023: Airtel Nigeria launched its 5G services, becoming the third telecom operator to do so. They began their rollout in key cities to enhance connectivity and digital services.

These launches have significantly boosted Nigeria’s digital infrastructure, providing faster internet speeds and improved connectivity across the country.

Government Support

The government has supported the rollout of 5G by auctioning and provisioning its use and deployment in Nigeria. Here’s a clear view of the 5G spectrum allocation process in Nigeria:

Auction Announcement

November 2021: The Nigerian Communications Commission (NCC) announced that the auction for the 3.5GHz spectrum, essential for 5G deployment, would take place in December 2021.

Spectrum Auction

December 13, 2021: The NCC conducted the 3.5GHz spectrum auction. After 11 rounds of bidding, MTN Nigeria and MAFAB Communications emerged as the winners. Airtel Nigeria also participated but did not secure a license.

Spectrum Allocation

February 18, 2022: The Federal Government formally allocated the 3.5GHz frequency bands to the NCC for 5G deployment. This event also included the public presentation of the National Policy on the Fifth Generation Networks for Nigeria’s Digital Economy.

Launch of 5G Services

August 2022: MTN Nigeria launched its 5G services, becoming the first operator to do so in Nigeria.

January 2023: MAFAB Communications, rebranded as Mcom, launched its 5G network in Abuja and Lagos.

June 2023: Airtel Nigeria launched its 5G services, following the acquisition of the 5G spectrum license in December 2022.

These steps have been crucial in advancing Nigeria’s digital infrastructure and enhancing connectivity across the country. These initiatives demonstrate the Nigerian government’s commitment to supporting 5G adoption and creating a favorable environment for investment and innovation.

Regulatory Framework

The regulatory frameworks surrounding the acquisition and implementation of 5G spectrum in Nigeria are designed to ensure a smooth and efficient rollout of 5G services. Here are the key components:

Spectrum Allocation and Auction

Auction Process: The Nigerian Communications Commission (NCC) conducts a transparent auction process for spectrum allocation. For instance, the 3.5GHz spectrum auction in December 2021 saw MTN Nigeria and MAFAB Communications emerge as winners.

Information Memorandum (IM): The NCC publishes an Information Memorandum detailing the auction process, eligibility criteria, and obligations for participants.

Licensing and Compliance

Licensing Requirements: To participate in the 5 G spectrum auction, telecom operators must meet specific licensing requirements set by the NCC. These include financial, technical, and operational criteria.

Compliance Monitoring: The NCC monitors compliance with licensing conditions, including rollout obligations and service quality standards.

Public-Private Partnerships (PPPs)

Funding and Collaboration: Telecom operators often use PPPs to secure funding and infrastructure support for 5G deployment. These partnerships help overcome financial and logistical challenges.

Regulatory Guidelines

Deployment Guidelines: The NCC provides detailed guidelines for the deployment of 5G infrastructure, including site acquisition, environmental impact assessments, and safety standards.

Spectrum Management: The NCC manages spectrum resources to ensure efficient use and to avoid interference between different services.

Memorandum of Understanding (MoU)

MoU with NigComSat: The NCC signed an MoU with the Nigerian Communications Satellite (NigComSat) to facilitate the release of contiguous bandwidth in suitable frequency bands for 5G deployment.

National Broadband Plan

The Nigerian government launched the National Broadband Plan, which sets ambitious targets for broadband penetration and infrastructure development, including 5G. Key aspects include:

1. Broadband Penetration Goals: The NBP sets ambitious targets for broadband penetration, aiming to achieve significant coverage across urban and rural areas. This includes the deployment of 5G networks to enhance connectivity.
2. Infrastructure Development: The plan emphasizes the need for a robust infrastructure to support high-speed internet services. This includes the development of fiber optic networks and the deployment of 5G infrastructure.
3. Policy and Regulatory Support: The NBP outlines policies and regulatory measures to facilitate the deployment of broadband services. This includes spectrum allocation, licensing, and incentives for private-sector investment.

Regulatory Harmonization

The NCC works closely with other regulatory bodies to harmonize policies and regulations, ensuring a conducive environment for 5G deployment. Key aspects include:

1. Unified Regulations: Harmonizing regulations across different sectors and regions helps reduce complexity and ensures a consistent approach to 5G deployment.
2. Collaboration with Stakeholders: Regulatory harmonization involves collaboration between the government, telecom operators, and other stakeholders to align policies and standards.
3. Simplified Compliance: By harmonizing regulations, the compliance process becomes simpler for telecom operators, reducing administrative burdens and accelerating the rollout of 5G services.

These frameworks are essential for creating a stable and enabling environment for the deployment of 5G technology, ensuring that Nigeria can fully harness the benefits of advanced connectivity.

Challenges and Obstacles Faced by Telecom Operators

Despite the government’s support and regulatory framework, telecom operators in Nigeria have encountered several challenges in their 5G deployment efforts:

Infrastructure Development

Building a nationwide 5G network requires significant investments in infrastructure, including base stations, fiber-optic cables, and data centers. This can be particularly challenging in rural areas with limited access to infrastructure.

Funding

Securing adequate funding for 5G deployment can be difficult, especially in a developing economy like Nigeria. Telecom operators may need to explore various financing options, such as loans, bonds, and partnerships with investors.

Consumer Awareness

Raising awareness among consumers about the benefits and applications of 5G is essential for driving adoption. Telecom operators must invest in marketing and education campaigns to inform consumers about the advantages of 5G.

Overcoming Challenges: Telecom Operators’ 5G Deployment Strategies

Infrastructure Development

• Leveraging Existing Infrastructure: Telecom operators have capitalized on their existing fiber-optic networks to provide a solid foundation for 5G deployment. By upgrading and expanding their fiber infrastructure, they have been able to reduce costs and accelerate the rollout of 5G base stations.
• Partnering with Infrastructure Providers: Collaborations with infrastructure providers, such as tower companies (IHS, ATC towers) and real estate developers, have enabled telecom operators to secure strategic locations for base stations. This generally improves network coverage and reduces deployment costs.

Funding

• Public-Private Partnerships: Telecom operators have formed partnerships with government agencies and private investors to secure funding for 5G projects. For example, MTN and Airtel have respectively spent approximately 504 and 109 billion naira in network rollout. These partnerships can provide access to financial resources and support from government bodies.
• Innovative Financing Models: Some operators have explored innovative financing models, such as leasing agreements and asset-backed securities, to raise capital for 5G investments.

Consumer Awareness

• Targeted Marketing Campaigns: Telecom operators have launched targeted marketing campaigns to educate consumers about the benefits of 5G and its potential applications. These campaigns have included TV commercials, social media promotions, and in-store demonstrations.
• Partnerships with Influencers: Collaborations with influencers and celebrities have helped to raise awareness and generate excitement about 5G technology.

MTN: The Early Leader

MTN’s 5G Rollout Strategy

MTN Nigeria, as a pioneer in the Nigerian telecom market, has adopted a comprehensive 5G rollout strategy aimed at providing widespread coverage and innovative services. Key elements of MTN’s 5G strategy include:

Early Preparation and Investment:

MTN secured the 3.5GHz spectrum license in December 2021, investing $276 million to obtain the necessary bandwidth for 5G services. They began 5G trials as early as 2019, showcasing various use cases to demonstrate the potential of 5G technology.

Prioritizing Major Cities:

MTN has focused on deploying 5G in major cities with high population density and strong economic activity, such as Lagos, Abuja, and Port Harcourt.

MTN launched its 5G services in August 2022, starting with major cities such as Lagos, Abuja, Port Harcourt, Enugu, and Kano. Within the first month, they aimed to cover these cities comprehensively and planned to extend 5G coverage to additional locations, including Ibadan, Owerri, and Maiduguri.

Targeted Market Segments:

MTN focused on high-value industrial and residential locations, aiming to capture the middle-class market with its “Own the Home” strategy. This approach includes offering 5G routers and devices to households and businesses.

Technological Advancements:

MTN deployed 127 5G sites in preparation for the launch, ensuring robust network infrastructure to support high-speed connectivity They promoted the use of 5G-capable smartphones and routers, offering incentives such as data bonuses to encourage adoption.

Strategic Partnerships:

MTN engaged in Public-Private Partnerships (PPPs) to secure funding and infrastructure support, collaborating with various stakeholders to facilitate the rollout. They also partnered with leading technology vendors like Ericsson to deploy advanced 5G Radio Access Network (RAN) solutions.

Customer Experience and Education:

MTN conducted extensive awareness campaigns to educate customers about the benefits of 5G technology and how to access it. They provided detailed guides and customer support to help users transition to 5G, ensuring a smooth and seamless experience

Key Cities and Regions Covered by MTN’s 5G Network

MTN’s 5G network initially covered several major cities and regions in Nigeria:

1. Lagos: MTN’s 5G services are available in 81 locations within Lagos.
2. Abuja: The Federal Capital Territory (FCT) has 42 locations covered by MTN’s 5G network.
3. Port Harcourt: 30 locations in Port Harcourt are covered.
4. Enugu: MTN launched 5G services in Enugu as part of their initial rollout.
5. Kano: Kano is another key city included in the initial 5G rollout¹.
6. Ibadan, Owerri, and Maiduguri: These cities were also part of MTN’s expansion plan

MTN’s 5G Applications and Use Cases

MTN has been at the forefront of 5G innovation in Nigeria, offering a range of applications and use cases to showcase the benefits of the technology. These include:

1. Enhanced Mobile Broadband: 5G provides faster internet speeds, enabling seamless streaming of 4K videos, high-quality video calls, and faster downloads.
2. Industrial Applications: MTN showcased 5G use cases in industries such as healthcare, agriculture, and mining. For example, 5G can support remote surgeries, precision farming, and real-time monitoring in mining operations.
3. Smart Cities: 5G technology enables smart city applications, including traffic management, smart lighting, and enhanced public safety through real-time surveillance.
4. Augmented Reality (AR) and Virtual Reality (VR): MTN demonstrated the use of 5G for immersive experiences such as 360-degree live broadcasts and AR glasses.
5. Internet of Things (IoT): 5G supports the deployment of IoT devices, enabling smart homes, connected vehicles, and efficient energy management.

MTN’s strategic approach to 5G rollout highlights its commitment to leveraging advanced technology to enhance connectivity and drive digital transformation in Nigeria.

Mafab Communications: A New Player in the 5G Landscape

Mafab Communications’ 5G Rollout Strategy

Mafab Communications (Mcom), a relatively new entrant into the Nigerian telecom market, has demonstrated its commitment to 5G technology by securing a license to deploy 5G services. Mcom’s 5G rollout strategy focuses on:

1. Spectrum Acquisition: Mcom secured the 3.5GHz spectrum license in December 2021, alongside MTN Nigeria. This acquisition was crucial for their 5G deployment plans.
2. Standalone 5G Architecture: Unlike many operators that use Non-Standalone (NSA) 5G, Mcom opted for a Standalone (SA) 5G architecture. This approach allows them to leverage the full capabilities of 5G, including lower latency, higher speeds, and better support for advanced applications like IoT and AR/VR.
3. Phased Rollout: Mcom launched its 5G services in January 2023, starting with six major cities: Lagos, Abuja, Port Harcourt, Enugu, Kano, and Kaduna. They plan to expand coverage to additional cities over time.
4. Infrastructure Partnerships: Mcom relies on partnerships and sharing existing telecom infrastructure to achieve nationwide coverage. This strategy helps them minimize costs and accelerate the deployment process².
5. Focus on Data Services: Mcom’s strategy emphasizes data services over traditional voice services. They aim to capture the growing market for high-speed internet and data-driven applications.

Key Cities and Regions Covered by Mcom’s 5G Network

Mcom’s initial 5G rollout covers the following key cities and regions:

1. Lagos: Coverage includes areas like Saka Tinubu, Ikoyi, Alausa, Surulere, Adeola Odeku, and Oregun.
2. Abuja: The Federal Capital Territory (FCT) is one of the primary regions covered.
3. Port Harcourt: Mcom has launched 5G services in this major city in Rivers State.
4. Enugu: Coverage extends to this key city in southeastern Nigeria
5. Kano: Kano is included in the initial rollout, enhancing connectivity in northern Nigeria.
6. Kaduna: Another significant city in northern Nigeria covered by Mcom’s 5G network.

Mcom’s 5G Applications and Use Cases

Mcom’s 5G network supports a wide range of applications and use cases, transforming various sectors:

1. Enhanced Mobile Broadband: Mcom’s 5G provides ultra-fast internet speeds, enabling seamless streaming, gaming, and high-quality video calls.
2. Internet of Things (IoT): The standalone 5G architecture supports massive IoT deployments, enabling smart homes, connected vehicles, and industrial automation.
3. Augmented Reality (AR) and Virtual Reality (VR): Mcom’s 5G network enhances AR and VR applications, providing immersive experiences for gaming, education, and training.
4. Telemedicine: 5G enables remote healthcare services, allowing doctors to perform consultations and even surgeries remotely with minimal latency
5. Smart Cities: Mcom’s 5G supports smart city initiatives, including traffic management, smart lighting, and enhanced public safety through real-time surveillance.
6. Cloud Computing: The low latency and high speeds of 5G facilitate advanced cloud computing applications, enabling businesses to leverage cloud services more effectively.

As Mafab continues to expand its 5G network and services, we can expect to see more information about its specific applications and use cases.

Airtel: A Strong Contender

Airtel’s 5G Rollout Strategy

Airtel Nigeria has been actively pursuing a 5G rollout strategy aimed at providing widespread coverage and innovative services. Key elements of Airtel’s 5G strategy include:

Spectrum Acquisition:

In December 2022, Airtel Nigeria acquired 100MHz of spectrum in the 3500MHz band and 2x5MHz of 2600MHz spectrum from the Nigerian Communications Commission (NCC) for $316.7 million. This acquisition was crucial for their 5G deployment plans.

Phased Rollout:

Airtel launched its 5G services in June 2023, starting with four key locations: Lagos, Ogun, Rivers, and the Federal Capital Territory (FCT), Abuja. They aim to cover the entire country by the end of the current financial year.

Non-Standalone (NSA) 5G Architecture:

Airtel opted for a Non-Standalone (NSA) 5G architecture, which leverages existing 4G infrastructure to provide enhanced 5G services. This approach allows for faster deployment and improved service delivery.

Investment in Infrastructure:

Airtel plans to invest $700 million annually over the next three to four years to accelerate its 5G rollout, install fiber optic cables, and build data centers.

Customer Engagement:

Airtel has focused on making 5G accessible to more Nigerians by offering affordable 5G routers and partnering with Samsung to provide 5G-compatible devices at competitive prices.

Key Cities and Regions Covered by Airtel’s 5G Network

Airtel’s initial 5G rollout covers the following key cities and regions:

1. Lagos: Coverage includes various parts of Lagos, the commercial hub of Nigeria.
2. Ogun: Airtel’s 5G services are available in key areas within Ogun State.
3. Rivers: The rollout includes Port Harcourt, the capital of Rivers State.
4. Federal Capital Territory (FCT), Abuja: The nation’s capital is one of the primary regions covered by Airtel’s 5G network.

Airtel’s 5G Applications and Use Cases

Airtel’s 5G network supports a wide range of applications and use cases, enhancing various sectors like other contenders. These include enhanced mobile broadband, smart cities, Internet of Things (IoT), Augmented Reality (AR) and Virtual Reality (VR), telemedicine, and enterprise solutions.

These strategic approaches to 5G rollout highlight the telcos’ commitment to leveraging advanced technology to enhance connectivity and drive digital transformation in Nigeria.

The Impact of 5G on Nigeria

5G technology has the potential to significantly impact various aspects of Nigerian society and economy. Here are some key areas where 5G is expected to have a transformative effect:

Economic Growth

• Job Creation: 5G deployment and associated infrastructure development can create new jobs in sectors such as telecommunications, technology, and related industries.
• Increased Productivity: 5G can enhance productivity in various sectors, including manufacturing, agriculture, and transportation, by enabling automation, remote monitoring, and real-time data analysis.
• New Business Opportunities: 5G can facilitate the emergence of new business models and industries, such as e-health, e-education, and smart cities.

Social and Cultural Impact

• Improved Quality of Life: 5G can enhance the quality of life for Nigerians by providing faster and more reliable internet access, enabling remote education, telemedicine, and other essential services.
• Digital Inclusion: 5G can help bridge the digital divide by providing access to internet services in underserved areas.
• Cultural Exchange: 5G can facilitate cultural exchange and collaboration by enabling seamless communication and access to global information.

Technological Advancement

• Innovation: 5G can foster innovation by providing a platform for the development of new technologies and applications.
• Research and Development: 5G can support research and development activities in various fields, such as healthcare, agriculture, and education.

Addressing Challenges

• Infrastructure Development: 5G can contribute to the development of critical infrastructure, such as transportation networks and power grids.
• Disaster Management: 5G can enhance disaster response and management capabilities by providing real-time communication and data analysis.

Overall, 5G technology has the potential to transform Nigeria’s society and economy, driving economic growth, improving quality of life, and fostering innovation.

The Future of 5G in Nigeria

Emerging Trends and Technologies

1. Standalone 5G Networks: While initial 5G deployments in Nigeria have used Non-Standalone (NSA) architecture, there is a growing trend towards Standalone (SA) 5G networks. SA 5G offers lower latency, higher speeds, and better support for advanced applications like IoT and AR/VR.
2. Internet of Things (IoT): 5G is expected to significantly boost IoT applications, enabling smart cities, connected vehicles, and industrial automation. This will lead to more efficient urban management, improved public safety, and enhanced industrial productivity.
3. Fixed Wireless Access (FWA): 5G FWA is emerging as a key solution to bridge the gap in last-mile connectivity, especially in areas with limited fixed broadband infrastructure. This will provide high-speed internet access to underserved regions.
4. Enhanced Mobile Broadband (eMBB): 5G will continue to enhance mobile broadband services, offering faster download and upload speeds. Also, seamless streaming, and improved user experiences for applications like gaming and video conferencing.
5. Augmented Reality (AR) and Virtual Reality (VR): The low latency and high bandwidth of 5G will enable more immersive AR and VR experiences, which can be applied in education, healthcare, entertainment, and training.

The future of 5G in Nigeria is promising, with significant potential to drive economic growth, enhance connectivity, and transform various sectors. Telecom operators will play a pivotal role in shaping this digital future, leveraging advanced technologies and strategic partnerships to overcome challenges and seize opportunities.

Conclusion

Nigeria’s journey into the 5G era has been marked by significant progress and exciting developments. The telecom operators MTN, Airtel, and Mcom have played pivotal roles in driving 5G adoption and expanding network coverage across the country.

As Nigeria continues to embrace 5G technology, it is poised to reap the benefits of faster speeds, lower latency, and enhanced connectivity. The potential for economic growth, social development, and technological advancement is immense.

By addressing challenges such as infrastructure investment, spectrum allocation, and consumer awareness, Nigeria can ensure a successful 5G future. The collaboration between government agencies, telecom operators, and technology providers will be essential in driving innovation and maximizing the potential of 5G.

Join the 5G revolution in Nigeria! Explore the possibilities of 5G and discover how it can transform your life and business. Stay updated on the latest 5G developments and news by commenting below and engaging in discussions on our social media handles.