MTN Gains Spectrum Boost via T2 Mobile Lease

The Nigerian Communications Commission (NCC) has given MTN Nigeria Communications Plc regulatory authority to lease spectrum assets from T2 Mobile Limited, formerly known as 9Mobile. This action is intended to increase network capacity and foster industry cooperation.

And MTN Nigeria reached an agreement after the regulatory authority information to lease additional spectrum from T2 Mobile, marking another move by the telecommunications giant to strengthen its network capacity and improve service delivery across the country. The deal comes at a time when Nigerian telecom operators are under pressure to expand to meet growing data demands from millions of subscribers.

The spectrum lease arrangement will give MTN access to radio frequencies that T2 Mobile currently holds but is not fully utilizing. This move is expected to boost MTN’s network performance, particularly in areas where the company has been experiencing congestion due to high user traffic. For everyday users, this means faster internet speeds, better call quality, and more reliable mobile services.

A business declaration submitted to the Nigerian Exchange Limited (NGX) states that the agreement would go into effect on October 1, 2025, and that it will initially last for three years. T2 Mobile will lease 5MHz frequency division duplex (FDD) in the 900MHz band and 15MHz FDD in the 1800MHz band to MTN Nigeria as part of the agreement.

T2 Mobile, which has maintained a smaller presence in Nigeria’s competitive telecom market, sees the lease agreement as a smart way to generate revenue from its spectrum holdings while MTN gets the additional capacity it needs without going through the lengthy process of acquiring new spectrum licenses from the Nigerian Communications Commission.

The timing of this deal is particularly important as Nigeria’s mobile data usage continues to surge. With more Nigerians working remotely, streaming content, and conducting business online, telecom networks are handling unprecedented amounts of traffic. MTN, which serves over 90 million subscribers in Nigeria, has been actively seeking ways to expand its network capacity to avoid service interruption and maintain its market position.

MTN’s decision to lease spectrum rather than buy it outright also reflects the company’s strategic approach to network expansion. Instead of tying up large amounts of capital in spectrum acquisitions, the company can allocate resources to other critical areas like  customer service improvements, and digital innovation projects.

The recently inked national roaming arrangement between the two carriers, which enables T2 subscribers to utilise MTN’s network infrastructure, is thought to depend on the pact. MTN claims it is pursuing a cost-effective plan to handle the additional traffic anticipated from T2’s subscriber base by combining roaming integration with spectrum trading, supporting its larger goal of digital inclusion throughout Nigeria.

MTN Nigeria CEO Karl Toriola characterised the move as a significant milestone in the company’s expansion.

This action demonstrates our dedication to providing dependable, superior connection and aligns with our Ambition 2025 vision. Our network capacity will be increased by the additional spectrum resources in an economical and environmentally responsible manner, according to Toriola.

For T2 Mobile, this lease agreement provides an opportunity to monetize assets that might otherwise generate limited returns. The company can maintain its spectrum holdings while earning steady revenue through the lease arrangement with MTN.   

The spectrum lease also positions MTN to better handle the rollout of advanced services like 5G technology. As the company continues to expand its 5G network across major Nigerian cities, having access to additional spectrum will be crucial for delivering the high-speed services that 5G promises.

The success of this MTN-T2 Mobile spectrum lease could pave the way for similar agreements across the industry, potentially leading to better overall network performance for Nigerian mobile users while helping smaller operators remain financially  in an increasingly challenging market environment.

Noting its nationwide roaming agreement with T2 and the onboarding of Mobile Virtual Network Operators (MVNOs) as proof of its drive for innovation and long-term sector sustainability, he continued, the business is purposefully promoting a more cooperative telecom ecosystem in addition to network expansion.

“These initiatives accelerate Nigeria’s digital transformation and inclusive economic growth in addition to increasing broadband penetration,” Toriola said.

MTN also revealed that it will not be extending its existing spectrum license with Natcom Development and Investment Ltd (Ntel), which grants access to 10MHz FDD in the 1800MHz band and 5MHz FDD in the 900MHz band in 17 states. 

The business said it has no intentions to extend the one-year agreement with Ntel, which is scheduled to expire on November 29, 2025.

In the disclosure, MTN stated, “We are still dedicated to partnerships and investments that help provide Nigerians with innovative, high-quality services.”

As operators look to maximise limited frequency resources while expanding coverage and enhancing service quality in Africa’s largest telecom market, the most recent spectrum agreement highlights an industry shift towards increased infrastructure sharing and collaborative approaches.