BACKGROUND
Nigeria’s journey to the deployment of the fifth generation (5G) network technology gathered
momentum in December 2021 when the National Communications Commission (NCC) conducted the
auction of two lots of 100 MHz TDD slots of 3.5 GHz band for the deployment of 5G networks in
Nigeria.
Three companies participated in the auction process and the bidding commenced at $199.37m, as
against the reserve price of $197.4m (75 billion naira) set by the NCC.1 After 11 rounds of bidding, the
auction ended at $273.6m for each available lot with MTN Nigeria Communications Plc (MTN) and
Mafab Communications Limited (Mafab) emerging as preferred bidders. The preferred bidders are
expected to pay the winning bid price, less the Intention-to-Bid Deposit, no later than February 24,
2022. MTN is to pay an additional sum of $15.9m to be assigned the preferred Lot One (3500-3600
MHz), while Mafab was assigned Lot Two (3700-3800 MHz), at no extra cost. In addition, Mafab is
required to acquire a Unified Access Service License, which is the operational license for the frequency
spectrum at an additional fee of N374.6m (approximately $905,000).
The Information Memorandum (IM) provides for a validity period of 10 years2 for the awarded
spectrum and further requires licensees to roll out service in at least one state in each geo-political
zone within the first two years from the effective date of the license. Further roll out is expected in six
additional states in the 3rd and 5th years. The technology is expected to have been fully deployed
nationwide between the 6th and 10th year of the award of the license. Roll out in each state is expected
to be a minimum of five sites per state.
1 Might just be worth noting that in the auction for GSM licenses that took place in January of 2001, reserved price was $100Million but
winning bids were $285 million.
2 Important to mention that the validity period of the GSM licenses issued in 2001 was for 20 years and MTN in commenting on the
Information Memorandum had requested the extension of the validity period for the 5G licence to 20 years
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THE GLOBAL JOURNEY TO 5G
The first generation of mobile networks (1G) was
launched in Tokyo in 1979. However, 1G technology
was poor in sound and coverage quality. There was no
roaming support between various operators and no
compatibility between systems leaving calls
unencrypted, such that anyone with a radio scanner
could intercept conversations. Despite these
shortcomings the technology attracted over 20 million
subscribers by 1990.
The success of 1G paved the way for the introduction
of second generation (2G) in 1993 which allowed for
the transformation from analog to digital
communication. This switch to digital communication allowed for the introduction of multimedia
systems such as SMS text messaging, MMS multimedia messaging and picture messaging. It also
allowed for call and text encryption that provided privacy for users. Most importantly, the
improvement in speed from a maximum of 2.4Kbps for 1G to 14.4Kbps for 2G made browsing the web
and downloading data possible for the first time.
The term “mobile broadband” was first used on the introduction of 3G in 2001. Web browsing,
enhanced audio and visual streaming, global roaming, video conferencing and GPS were all possible
with the introduction of 3G technology which had a significantly higher maximum speed in comparison
to 2G technology thereby allowing users to browse the web, download and upload data at higher
speeds.
Improving speeds, security and connection even further, 4G technology was introduced in 2009 and
is still widely used today. 4G with a maximum speed of 300Mbps3supports the same applications and
services as 3G but it is also capable of handling applications that need better speeds and connection,
such as gaming, streaming media in high resolution and wearable technology including fitness
trackers.
5G TECHNOLOGY
5G technology was introduced in 2019 with a host of
improvements and upgrades from earlier mobile
technologies. Increased speed is perhaps one of the
major improvement that 5G provides. As stated
earlier, 4G networks offer maximum download speeds
of 300Mbps, but 5G offers speeds up to 10Gbps –
meaning users can stream media, download and upload
data and play games on the go faster than ever before.4
5G networks are critical components of the much-touted
4th industrial revolution, the digital economy and digital
transformation for businesses.5 More than 180 service
3 However, 4G adoption in Nigeria was 12.2% of total connections within the same period. Mobile broadband download speed is still very
low with Nigeria ranked at 104th in the world as at July 2019
4
A Brief History of 5G by Ifrah Mukri 16th August 2019
5 In recognition of the importance of the digital economy and its transformation benefits to Nigeria the Ministry of Communications and
Digital Infrastructure has published the Nigeria Digital Economy Policy and Strategy
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providers have launched 5G services globally and it is estimated that there are presently more than
660 million 5G subscriptions globally, most of which are in North East Asia followed by North America,
the Gulf Cooperation Countries and Western Europe. With total subscriptions expected to hit 1 billion
in two years,6 Sub Saharan Africa presently has no subscriptions yet and this will undoubtedly impact
its growth and the proposed economic integration through the Africa Continental Free Trade
Agreement (ACFTA). The spectrum award by Nigeria is a welcome development and will no doubt help
in fostering industrial growth and development.
CHALLENGES TO THE SUCCESSFUL DEPLOYMENT OF 5G NETWORKS IN NIGERIA
Although most of the challenges are not new and they
continue to hinder the roll out of 3G and 4G services
nationwide, some of the identified challenges to the
successful roll out of 5G networks in Nigeria include –
i. Low levels of Fiber Optic Infrastructure - Nationally
fibre optic cable infrastructure deployment is
insufficient and mostly available in a few cities and
urban areas. It is estimated that to achieve full
broadband penetration, 120,000km of fibre needs to be
installed, given Nigeria’s land mass. Nigeria reportedly
has a deficit of about 80,000 kilometres of fibre which
needs to be met before effective nationwide deployment of broadband can be achieved.7
Apart from low levels of fiber optic cable deployment, there are also the issues of vandalism
and damage to existing fiber infrastructure from road construction.8
ii. Availability and affordability of Devices - The availability and affordability of 5G devices in
Nigeria will be a major consideration for the awardees of the spectrum in the deployment of
the 5G network. This continues to be a major factor in the deployment of 4G networks and
the position will still be the same for 5G. The effect will be the deployment of services first in
major cities where there will be willing customers that can afford the devices and the cost of
the service.
iii. Access to Forex – The telecoms industry in Nigeria relies heavily on foreign equipment
manufacturers and imported technical expertise for deployment and maintenance of
networks. The cost and process of accessing forex for these purposes continues to be a
challenge taking into consideration the demands on foreign exchange reserves of the country
by other eligible sectors.
iv. Inadequate Electrical Power Supply: The deployment and maintenance of 5G networks
require higher density coverage, more base stations and additional equipment and
consequentially more power demand. Just as with the roll out of previous generation
networks, telecom companies will have to invest, now at much more higher levels, to meet
the increased power requirements of 5G network because of the poor state of the country’s
power infrastructure. This will increase the cost of deployment and where not properly
6
Ericsson “Mobility Report” Nov 2021
7 As at December, 2020 the total on land fiber deployment was 43,898.8km.
8 The Cybercrime Act (Prohibition, Prevention etc.) Act 2015 envisaged the declaration of telecommunications infrastructure as Critical
National Infrastructure with the attendant protection which is expected to curb these incidents. This declaration is however yet to be
made by the President
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dimensioned, may affect quality of service and consequential the cost will be passed on to
consumers.
v. Insecurity – As earlier mentioned, there is a licence requirement for deployment in at least
one state in the various geo political zones in Nigeria within stipulated time lines, it is however
important to note that nearly all the seven states in Northwest Nigeria are experiencing
security challenges which has led to the temporary shutdown of telecom services in areas of
some states in given periods. Security will therefore continue to be a challenge.
vi. Right of Way (ROW) – High ROW fees continues to hinder the deployment of
telecommunications infrastructure in Nigeria. Despite the government at Federal level
proposing the acceptance of a uniform nationwide fee for the procurement of ROW, various
states and their agencies continue to administer ROW differently with their financial demands
often frustrating operators’ roll out plans. Linked to the low level of fibre optic deployment is
the divergent policies and inability to obtain ROW permits from the various states.9
vii. Multiple taxation and regulation- Although this challenge will not be new to the deployment
of 5G technology as it currently affects ongoing deployments, it will also be an additional
challenge to be dealt with by the networks. Nigeria’s case is further complicated by its
operation of the federal system of government which has seen the different levels of
government and their agencies imposing duplicated and often arbitrarily determined charges
on telecoms infrastructure and companies.
viii. Regulatory and Legal issues - Law and Regulation cannot expect to match technology in speed
and complexity - arguably, this is not to be desired. The legislature and regulator will need to
develop innovative regulations and stakeholder management techniques to manage the
complexities, legal and regulatory issues that applications and uses that a full adoption of 5G
will introduce. A legal, policy and regulatory approach that will not hinder innovation and
adoption should be adopted by the appropriate authorities for users to benefit from the
applications and services that will be built on 5G technology.
CONCLUSION
The 5G spectrum award is a critical component of the achievements of the stated objectives in the
Broadband Plan 2020-202510 and the National Digital Economy Policy and Strategy. Both policy
documents acknowledge the pivotal role the rapid and pervasive rollout of high-quality broadband
infrastructure and services plays in accelerating national socio-economic development and the
transformation of Nigeria into a leading digital economy.
Internet services in the country are currently provided on 2G, 3G, and increasingly 4G mobile
networks. Though 4G coverage is available to 37% of the population, download speeds in the country
are noted to be generally uncompetitive with other countries in the same income bracket.
Rapid rollout of broadband services will address various socio-economic challenges faced by the
country, including the need to grow its economy, create jobs, rapidly expand the tax base, and improve
digital literacy and educational standards. This will also address identity management and security
challenges through the effective use of technology, increase financial inclusion and deliver a broad
9 5G Network Deployment in Nigeria: Key Challenges and The Way Forward - Cosmas Kemdirim Agubor, Nkwachukwu Chukwuchekwa and
Longinus Sunday Ezema published in EJERS, European Journal of Engineering and Technology Research Vol. 6, No. 3, March 2021 available
at https://www.ejers.org/index.php/ejers/article/view/2068/1059
10 This broadband plan is designed to deliver data download speeds across Nigeria, a minimum of 25Mbps in urban areas, and 10Mbps in
rural areas, with effective coverage available to at least 90% of the population by 2025 at a price not more than N390 per 1GB of data (2%
of median income or 1% of minimum wage).
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range of services to its people to improve the quality of life and work towards attainment of Social
Development Goals set by the United Nation for 2030.
The 5G technology, fully explored, should have an extended impact on every industry, including
transportation, education, entertainment healthcare, agriculture, and even digitized logistics. The
effect of the full adoption of 5G and the use cases will lead to new ethical, policy, regulatory and legal
issues that will require continuous study, analysis and rapid intervention at all levels of civilized
society. Nigeria will have to develop the capabilities and structures to competently deal with these
issues similar to developed countries that are already grappling with same.
For further enquiries, please contact:
ROTIMI AKAPO GLORY OGUNGBAMIGBE MARIAH AKAGU
[email protected] [email protected] [email protected] Page | 5
