MTN Ghana has confirmed that it is moving ahead with plans to launch 5G mobile services after the National Communications Authority (NCA) notified the company of a spectrum award in the 700 MHz and 3 GHz frequency bands. The telecom operator says the licences could cost it approximately US$202 million. This development follows an NCA invitation for operators to apply for licences across the 700 MHz, 2.3 GHz and 3 GHz mid-band frequencies.
The awarded spectrum is expected to play a crucial role in enabling MTN Ghana to deploy 5G services. Spectrum refers to the radio frequency bands that mobile networks use to carry voice calls, text messages and internet data between phones and network towers. Telecom operators must be licensed by national regulators, in Ghana's case the NCA, to use specific slices of this spectrum.
MTN Ghana stated that the payments for the newly acquired licences have been incorporated into the company's equity free cash flow outlook. This suggests the telecom giant has already budgeted for the cost of the spectrum within its broader financial planning, rather than treating it as an unplanned expense. The company is currently finalising the formalities and payment obligations tied to the licence acquisition.
The spectrum award signals that 5G connectivity, long available in several other African markets, could soon become a reality locally for millions of MTN subscribers across Ghana. MTN said that once the licences are formally issued, it intends to deploy the new 5G spectrum alongside its existing frequency holdings to strengthen network capacity, improve service quality and enhance the overall customer experience nationwide.
The additional spectrum would be critical to MTN's efforts to grow 5G mobility services and to advance its ambitions around home connectivity in Ghana. This refers to fixed wireless or home broadband services delivered over mobile networks rather than traditional fibre or cable connections. The company aims to provide better services to its customers using the new spectrum.
MTN has not provided a firm date for when 5G services will become available to customers. The company said only that it will keep the market informed of material developments as it progresses the rollout of the newly awarded spectrum and its high-speed 5G ambitions. No details have been given on pricing for 5G plans or which geographic areas will be covered first.
In its notice, MTN thanked its shareholders and other stakeholders for their continued support as it undertakes what it described as a strategic investment in the country's telecommunications infrastructure. The company is moving forward with its plans to launch 5G services, and stakeholders are eagerly awaiting further updates on the rollout.
Key points
- MTN Ghana has secured spectrum licences worth US$202m from the National Communications Authority.
- The licences will enable MTN Ghana to launch 5G mobile services in the country.
- The rollout of 5G services is expected to improve network capacity, service quality, and customer experience nationwide.
