• Wednesday, May 29, 2024
businessday logo

BusinessDay

Airtel Africa notifies investors of additional spectrum acquisition worth $316.7m

Airtel buys back over 5mn shares from Citigroup in 12 trading days

Airtel Africa Plc has notified investors in the equities market that its Nigerian subsidiary, Airtel Networks Limited (‘Airtel Nigeria’), has purchased 100 MHz of spectrum in the 3500MHz band and 2x5MHz of 2600MHz from the Nigerian Communications Commission (NCC) for a gross consideration of $316.7million, payable in local currency.

This additional spectrum will support Airtel Africa’s investments in network expansion for both mobile data and fixed wireless home broadband capability, including 5G rollout, providing significant capacity to accommodate its continued strong data growth in the country and exceptional customer experience.

Airtel Nigeria is Airtel Africa’s largest market, with significant growth potential. The company led the industry in providing affordable 4G services across the country following the deployment of a fully modernised network which facilitated a 4-fold increase in data traffic over the last three years.

Read also: Airtel, other stocks spur market’s positive start to new week

The penetration of data customers in Nigeria remains low, providing significant opportunity for future growth. The acquisition of 5G spectrum will underpin Airtel Africa’s growth strategy by enabling the launch of higher speed connectivity to enhance customer service and accelerate digitalisation for consumers, enterprises and the public sector.

The key benefits of 5G will include higher speeds, lower latency, significant network capacity
as well as an improved user experience. Furthermore, the deployment of 5G will accelerate the availability and efficiency of fixed wireless access products across the country, contributing towards Airtel Nigeria’s progress in meeting the National Broadband Plan targets.

The acquisition of 2600MHz spectrum will complement Airtel Africa’s already strong spectrum position in the market to enhance network capacity and future-proof its growth opportunity.

Segun Ogunsanya, CEO of Airtel Africa said, “Nigeria is a market with enormous potential for future growth in mobile services. Investment in new technologies and local infrastructure to enable this growth is a strategic priority for the Group and will ensure we are able to provide reliable and affordable services to local communities across the country. 5G
is critical to these ambitions, and we look forward to launching new services to drive further digitalisation across the country, facilitate economic progress and transform lives across Nigeria.”