The Nigerian Communications Commission (NCC), on Thursday, plans to conduct the 5G spectrum auction on December 13, 2021, with a reserve price starting at $197,400,000 for two lots of spectrum in the 3.5GHz band.
According to the IM, an Initial Bid Deposit (IBD) equal to 10 percent (N7.5 billion) of the reserve price is to be paid by participants in line with the previous auction.
New entrants are allowed to participate in the auction in addition to existing licensees and only Licensees with 100 percent regulatory compliance would be allowed to participate in the auction.
Five lots of 100 megahertz (MHz) each test-driven development (TDD) are to be cleared at different periods depending on the level of restraint on the slots. But for the purpose of this auction, two lots of 100 MHz each are to be offered in the first phase of the auction.
Lot 1 includes a frequency range of 3500-3600, 100 bandwidth and lot 11 has a frequency range of 3700-3800 and a 100 bandwidth as well, all measured in MHz.
However, telecom operators including MTN, Airtel, Huawei, as well as the global system for mobile communications association (GSMA) have called on the regulator to lower the reserve price for the 5G spectrum.
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“Already, the Commission is set to auction some spectrum slots in the 3.5GHz band and we have confirmed 97 percent readiness for 5G deployment in this regard. This is in line with the marching order given to us by Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim (Pantami), following approval by the Federal Executive Council to proceed on our 5G Deployment Plan which we are set to auction before the end of the year,” Umar Garba Danbatta, Executive Vice Chairman, NCC said.
The event, which had both physical and virtual participants, saw the commission present the timelines and strategy, and comments of telecommunications operators to the draft Information Memorandum (IM) for the 5G spectrum in Nigeria.
“I don’t like commenting on speculation, let it happen after which we will able to situate our point where it should be situated because there is no point creating a future out of mere imagination,” Ajibola Olude, Executive Secretary/Chief Operating Officer at Association of Telecommunications Companies of Nigeria (ATCON) said in a phone interview with BusinessDay.
Meanwhile, licensees with outstanding debts that have secured the management’s approval for a payment plan will be allowed to participate.
“One of the initiatives being employed by the Commission to enhance the attainment of the next frontier for telecom development in Nigeria and the nation’s economic growth is the ongoing review of licensing structure in the sector. This is to align telecoms licensing processes with the wide range of technological advances, the convergence of technologies and services shaping global telecoms space,” Danbatta said.
