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5G Networks: NCC plans auction of 2 licences in 3.5GHz Spectrum band, fixes asking price

*The Nigerian Communications Commission plans to auction  two 100MHz in the 3.5GHz Spectrum Band to advance 5G technology deployment in the country

Gbenga Kayode | ConsumerConnect

In line with the telecoms sector regulator’s draft Information Memorandum (IM) developed to support auction process, the Nigerian Communications Commission (NCC) is set for the auction of 2 x 100MHz in the 3.5GHz Spectrum Band to further deployment of the Fifth Generation (5G) networks in the West African country.

ConsumerConnect reports the Commission has fixed the reserve price for its new 5G spectrums at US$273,600,000 for a 10-year licence tenure.

Mr. Reuben Muoka, Director of Public Affairs at NCC, in the notice released Friday, October 21, 2022, stated that the  exercise is in consonance with the Commission’s functions under the Nigerian Communications Act 2003 (the Act).

The NCC said: “The Commission will hold a Public Consultation in respect of the Draft IM on Tuesday, November 15, 2022.

“This is in line with the Commission’s participatory rule-making process for the communications sector, to give stakeholders and interested parties an opportunity to review and comment on the draft IM before the final document is published.”

The NCC Director of Public Affairs also noted: “The Reserve Price (RP) is the minimum price for one Lot of 100MHz TDD for a ten (10) year licence tenure fixed at Two Hundred and Seventy-Three Million and Six Hundred Thousand United States Dollars only (US$273,600,000.00) or its equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) rates at the time of the auction.

“The fee for the ten (10) year Spectrum Licence will be determined at the Auction.”

Muoka further said: “The Opening Bid will be an increment higher than the Reserve Price in the Opening Round of the Auction.

“A successful bidder at the Auction will be expected to pay a sum equal to the amount of the winning bid minus the IBD, as well as an operational Licence fee (where applicable).”

The regulator disclosed it would hold a Public Consultation in respect of the draft IM November 15, 2022.

“This is in line with the commission’s participatory rule-making process for the communications sector, to give stakeholders and interested parties an opportunity to review and comment on the draft IM before the final document is published,” it stated.

The NCC as well explained that applicants do not have to be licensed network operators in Nigeria, but will need a Unified Access Service Licence (UASL), if their bid is successful.

The Commission added: “All submissions on the Draft IM must reach the Commission on or before Wednesday, November 11, 2022.”

It stated such submissions should be addressed to: The Executive Vice-Chairman, Nigerian Communications Commission, Plot 423, Aguiyi Ironsi Street, Maitama, Abuja, and Attention: Head, Spectrum Administration/Chairman 5G Auction Committee.

It is recalled the telecoms sector regulatory Commission, May this year, issued final letters of award of 5G licences to MTN Nigeria and Mafab Communications Limited after they had made their full payment of $273.6million each.

While MTN rolled out its 5G mobile network August 24, Mafab however, could not deploy the networks, and subsequently, got a five-month extension from the NCC.

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