Fourteen licences valued at N130.5bn are up for grabs in the 2.6GHz spectrum auction planned to begin May 5 in Abuja, BusinessDay has gathered. With this new resource, consumer experience in broadband service delivery is expected to witness a massive boost, particularly in the shape of faster data speeds, lower prices and better network coverage, according to the Nigerian Communications Commission (NCC).
With traffic congestion still a major challenge to service provision, the 2.6GHz band is better-suited to high data rates required to serve large numbers of users in urban areas, airports and other high-traffic areas.
With the 2.6GHz spectrum, telecoms firms are likely to witness a massive jump in overall network performance, especially in the area of data transmission, and congestion. “The volume of data traffic being carried by mobile and fixed networks are enormous and unprecedented,” said Austin Nwaulune, director, spectrum administration at the commission.
“This is why we are doing all we can to find sufficient spectrum to manage the huge traffic,” Nwaulune added. The regulator had earlier announced the resumption of 2.6GHz spectrum auction. The auction was suspended due to administrative hitches, which required the regulator to eject illegal occupants of the spectrum ahead of the auction.
According to the auction rules released by the NCC, a reserve price, representing the lowest amount the licence is being offered, has been pegged at N3,184,800,000.00 ($16,000,000) per slot for the 14 available to provide services across the country.
The available slots of 14 licences totalling N130,576,800,000 will be enable the winners to offer broadband services across the country. The release of the Information Memorandum (IM) detailing rules for the upcoming 2.6Ghz spectrum auctions in Nigeria resuming the licence sale suspended in November 2014 by NCC over what the agency cites as ‘administrative’ issues.
Abuja will in June this year play host to bidders for the licences, expected to open up new opportunities in the market for broadband services across Nigeria. According to the IM released by commission, “The proposed licensing of 2.6 GHz frequency spectrum has been influenced by the need to open up the space for the delivery of present and future generations of broadband services to subscribers in consonance with the Nigerian National Broadband Plan of 2013.”
Industry experts however are of the view that widespread broadband service availability will facilitate greater adoption of advanced online services such as electronic governance, electronic health, electronic education, electronic commerce and telemedicine.
Broadband would also enable Nigerians employ themselves on the back of the myriad of opportunities availed by the internet. In addition, faster broadband services will allow skilled diaspora Nigerians contribute massively to national development.
Beyond that, industry watchers however say efficient and affordable broadband will lower the cost of real estate as people will be able to work from anywhere, without necessarily converging in urban areas and needing to commute.
NCC, which says it decided to auction the “entire 2 X 70 MHz slot available in the 2.6 GHz band to support the delivery of broadband wireless services nationally” is also assuring investors of market potentials for their stakes in the communications industry.
“Nigeria is the most populous nation in Africa with a population of about 173.6 million people as at 2013 according to the World Bank. The population has grown at a rate of 2.3 percent for each year from 2000 to 2013. 60 percent of the population is under the age of 20.”
Nigeria, which has over 125 million active mobile connections, is calling on stakeholders to explore stakes in the Internet market, where subscription is lower than voice and hence opens market opportunities.
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“Etisalat believes that access to broadband is a basic right for everyone…But providing universal access to broadband poses a challenge for telcos because network investments not only have long pay-back periods and capex on infrastructure today yields diminishing returns” – Ahmad Julfar, chief executive officer of Etisalat Group.
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