MTN Ghana has bought its way into Ghana’s 5G future. The National Communications Authority (NCA) awarded the operator spectrum in two bands for $202 million, on 15-year licences. MTN Group announced the award on Friday, October 2.
The deal is the clearest sign yet that Ghana has abandoned its single-network 5G plan. Securing airwaves is not the same as switching on a network, though. MTN has not said when or where its 5G service will go live.
What MTN Ghana Won in the 5G Spectrum Award
MTN Ghana, which trades as Scancom PLC, took two lots in the 700 MHz band, a 2×20 MHz block, for $100.9 million. It also took all three lots in the 3 GHz band, a 150 MHz block, for $101.1 million.
The two bands do different jobs. The 700 MHz band carries signal over long distances and into buildings, which suits rural coverage. The 3 GHz band delivers capacity for fast data in dense cities, according to the regulator.
MTN said the new airwaves will sit alongside its existing spectrum. It plans to use them to raise network capacity, improve service quality and push 5G into both urban and rural areas. The company also named home broadband as a target.
MTN said it is finalising formalities and payment obligations, according to Connecting Africa. It added that the licence fees are already built into its equity free cash flow outlook.
How Ghana Ended Its Single 5G Network Plan
Until July, Ghana’s 5G strategy ran through Next Gen Infraco (NGIC). The state-backed wholesaler held exclusive rights to build the national network, with a concession scheduled to run to 2034. Reliance Industries’ Radisys unit, controlled by Mukesh Ambani, supplied the infrastructure partnership.
Progress lagged. According to the NCA, NGIC had 49 5G sites by March, mostly in Greater Accra. The target was 1,200 sites by 2027.
The NCA amended NGIC’s licence on July 15 and removed its exclusivity. NGIC keeps the rest of its licence, including its spectrum, and says it remains fully operational. The regulator then invited applications for the 700 MHz, 2.3 GHz and 3 GHz bands.
Four applicants came forward. The NCA cleared MTN, Telecel Ghana and Goal Telecommunications on September 9 and rejected Infrava Ltd. On September 11 it announced MTN’s 700 MHz win.
Telecel Moves First on Launch Dates
Telecel Ghana secured three lots in the 2.3 GHz band, though it has not disclosed its fee. Chief executive Moh Damush told Bloomberg that the company plans to launch 5G on its own network in December.
That date puts pressure on MTN. The market leader, with 32.8 million mobile subscribers in June according to the Rio Times, now has a rival with a public deadline and no wholesale middleman. MTN has offered no equivalent date.
The Critical Questions for Ghana’s 5G Race
Three questions will decide whether this award helps Ghanaians or only MTN.
The first is dominance. The old model aimed partly to stop MTN from extending its lead. The new model hands the largest operator two of the best 5G bands. Competition now depends on Telecel and others building fast.
The second is rollout. MTN’s licence reportedly carries rural coverage and roaming duties, according to the Rio Times, but no public timetable accompanies them. MTN also has to find money for towers and equipment after paying $202 million for the airwaves. TechMoonshot has reported that MTN Ghana’s rise to MTN Group’s third-largest subsidiary came with an investment drive, and 5G now adds to the bill.
The third is service quality. Regulators across MTN’s markets have pressed the operator on network performance. Nigeria’s NCC ordered MTN, Airtel and others to compensate subscribers for poor service earlier this year. Ghanaian subscribers will expect the same discipline from their own regulator.
What to Watch Next
MTN has a record of stretching scarce spectrum across its markets. In Nigeria it won approval to lease spectrum from T2 Mobile rather than wait for new auctions. Ghana’s case is different, because MTN now owns its airwaves outright.
Watch three things. First, MTN’s launch cities and date. Second, 5G data pricing, which neither operator has announced. Third, whether Telecel hits its December deadline. If it does, MTN Ghana will have paid $202 million to follow, not lead.
