MTN Nigeria Communications on Friday has formally notified the Nigeria Alternate and the investing public that the lease for roughly 2,500 community websites, presently serviced by IHS Nigeria, is because of expire in 2024 and 2025.
Additionally Learn: Bayobab Granted NLDO License by Nigerian Regulatory
MTN Nigeria’s Tower Lease Expiry
In its change submitting, MTN Nigeria said, “According to MTN Nigeria’s procurement coverage, which seeks to make sure a clear and aggressive bidding course of, the corporate referred to as for tender for these tower contracts.”
ATC Nigeria Chosen
“Following a evaluate of the bids obtained for tower companies for the affected websites, ATC Nigeria Wi-fi Infrastructure Options Restricted (ATC) was chosen as the popular tower firm for these websites based mostly on its superior bid submission. Moreover, it will additional diversify our web site portfolio and align with our proactive initiatives to renegotiate tower agreements, specializing in making certain phrases that can assist cushion the enterprise from the volatility in our buying and selling setting,” said the change submitting.
MTN Nigeria, in its assertion, introduced that ATC would assume accountability for offering tower companies for the affected websites beginning in 2025.
Additionally Learn: MTN Nigeria Renews 2100 MHz Spectrum License and Leases Spectrum From NTEL
IHS Towers Response
In response to MTN Nigeria’s resolution, IHS Towers confirmed the identical in an change submitting.
IHS holds a number of contracts with MTN for the usage of its towers in Nigeria, one among which, with IHS Nigeria, contains roughly 4,100 towers, of which about 2,000 are set to run out on December 31, 2024, and roughly 500 throughout 2025, with the rest expiring between 2026 and 2031.
Throughout the second quarter of 2023, the roughly 2,500 towers set to run out by December 2025 generated roughly USD 45 million in income for MTN. The remaining MTN contracts in Nigeria are resulting from expire in December 2024, December 2029, and July 2035.
