NCC plans 5G spectrum band auction for December 13: Official

*The telecoms sector regulator reels off conditions and guidelines for prospective bidders as the Nigerian Communications Commission officially fixes the auction of 3.5 GHz spectrum band for Monday, December 13, 2021

Isola Moses | ConsumerConnect

As part of its preparation for the deployment of Fifth Generation (5G) technology in in the country, the Nigerian Communications Commission (NCC) has officially declared that auction of the 3.5 Gigahertz (3.5 GHz) spectrum band holds Monday, December 13, 2021.

ConsumerConnect reports in regard to the Information Memorandum (IM) the telecoms sector regulator presented at the recent stakeholder engagement forum on 5G spectrum in Lagos, NCC is adopting Ascending Clock Auction format.

A group photograph of NCC staff at the stakeholder engagement forum on 5G spectrum in Lagos   Photo: NCC

The Commission stated the format is software-based, while a mock auction has been slated for December 10, 2021, as a precursor to the actual auction December 13.

RELATED: NCC Holds Stakeholder Engagement Forum On 5G Spectrum Auction in Lagos

The IM provides information, conditions, obligations, financial implication, timelines, and other necessary details on the planned 3.5Ghz spectrum auction, the NCC noted.

It also explains the rollout obligations of the would-be eventual winners of the spectrum licence auction, whose reserve price has been pegged at $197.4 million (N75 billion).

The IM also states that only licensees, who make 10 percent deposit of the reserved bid price, and with 100 percent regulatory compliance will be allowed to participate in the auction.

The telecoms regulator, however, said in a statement issued Saturday, November 6, 2021, that licensees with outstanding debts that have secured NCC’s approval for a payment plan will be allowed to participate in the auction next month.

RELATED: Stakeholders, Broadband Access Critical To Effective 5G Deployment, National Development ─Pantami

The auction, IM noted, comes with a 10-year spectrum licence and a minimum requirement of an operational Universal Access Service Licence (UASL).

However, new entrants or licensees without a UASL will be required to obtain a UASL operational license to be qualified for the 5G licence.

Cross-sections of participants at the NCC Stakeholders’ Consultative Forum 

The NCC said that the eventual licensees would have a rollout obligation plan spanning a period of 10 years, beginning from the date of award of the licence.

“Between the first and second year of the licence, the operators are expected to rollout service in, at least, one state in each geo-political zone.

RELATED: NCC’s Policy Engagement With Stakeholders For Quality Consumer Experience, Says Danbatta

“From the third to fifth year, they are obligated to cover all the zones. Between six and 10 years, they should cover all the states in the country, according to guidelines set out in the IM,” the Commission stated.

Prof. Isa Ali Ibrahim Pantami, Honourable Minister for Communications and Digital Economy, in his keynote address at the Stakeholders’ Consultative Forum in Lagos, said the Ministry had been working closely with the Commission to ensure that necessary spectrum resources needed for the deployment of 5G networks in Nigeria, to accelerate the country’s digital economy space are made available.

The NCC organised the stakeholder engagement forum in keeping with the provisions of the Nigerian Communications Act (NCA) 2003 and the Commission’s tradition of consultative regulatory practice.

Represented at the forum by Abubakar Ladan, a Director in the Ministry and  Secretary to the National Frequency Management Council (NFMC), Prof. Pantami disclosed the 3.5GHz is the most popular spectrum band used globally by regulators and operators for the deployment of 5G technology, and it seems the only band available in Nigeria for immediate use by the telecoms operators in the country.

In his address, Prof. Umar Garba Danbatta, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of NCC, itemised the various steps the Commission had diligently taken which culminated in current status of the 5G deployment plan.

RELATED: 5G Networks Safe, Beneficial As Spectrum Auction Price Starts From N75billion ─NCC

The NCC EVC/CEO also reeled off data to justify how profitable investment in 5G deployment would be for potential operators and investors in the country.

Danbatta said: “Nigeria has an estimated population of 214 million, with an average growth rate of 2.6% annually.

“Approximately 76.46 percent of the population is under the age of 35. In line with these demographic changes, Internet penetration grew from 3 percent in 2004 to 73.82 percent as of September, 2021, and Broadband penetration increased from less than 10 percent in 2015 to 40.01 percent in September, 2021.”

According to him, while the global impact of Fourth Generation (4G) technology brought about increase in mobile usage and network performance, 5G technology will leverage this momentum, bringing substantial network improvements, including higher connection speed, mobility and capacity, as well as low-latency capabilities.

The NCC stated the industry stakeholders, including operators, industry associations and groups, advocacy bodies, and the media participated in well-attended stakeholders’ forum in Lagos.

The Association of Licensed Telecoms Operators of Nigeria (ALTON), among others, called on the government to continue to make the operating environment more conducive for the existing and prospective licensees in the telecoms ecosystem.

The operators said this would enable Nigeria to fully harness the derivable benefits of mobile technology in the country.

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