The Nigerian Communications Commission (NCC) yesterday revealed that a minimum of $224 million would be made in the sale of a 2.6GHz spectrum frequency which would be auctioned at minimum price of $16 million dollars per Lot of 2X5MHz and there are fourteen Lots up for auction.
Speaking at an interactive session with journalists, Austine Nwaulune, Director, Spectrum Administration, NCC said that the bidding process would be as transparent as possible and interested participants would only be allowed to bid for a minimum of four Lots (20MHz)and a maximum of 8 Lots.
“The Generic Reserve price (GR) is the minimum price at which a Lot shall be sold, which is the Reserve Price for one Lot of 2X5MHz and has a value of Sixteen Million United States Dollars.
“The Reserve Price (R) for an applicant will be calculated as the Generic Reserve Price (GR) multiplied by the number of Lots (N) applied for by the applicant. For example if you apply for 6 Lots it would be $16,000,000.00 x 6= $96,000,000.00,” he said.
Nwaulune explained that the spectrum was offered to the commission on a technology neutral basis, adding that it could be used to provide any telecommunication service which includes facilitating the roll out of broadband to possibly meet the 2018 target of 30 percent broadband penetration.
“I have heard that some people are saying that the government is auctioning this spectrum frequency to make money but the main objective as written on the NCC website is to meet the demand for additional spectrum by operators and to help them achieve 4G.
“That is why we have made it open to everyone including foreign operators as long at they register with the Corporate Affairs Commission (CAC),” he
added.
Nwaulune said that the 2.6GHz frequency is very essential as “108 countries around the world have rolled out Long Term Evolution (LTE) on this frequency.”
In line with talks on transparency of bidding process, Reuben Muoka, Deputy Director, Public Relations, NCC said; “There would be an auction committee set up to make sure the process is fair and transparent.”
When asked about the 1 year deadline given to winning bidders to roll out, as several operators who had won previous spectrum bids where yet to roll out even after the one year timeline had expired, Austine Nwaulune said; ” If we have been having cases where operators ignored the 1 year deadline, this would be the last time it would happen because we have strict rules now and failure to adhere would result in the licenses being withdrawn from the winners.
” This is because we intend for the whole nation, that is the 6 geo-political zones of the country to be covered in 8 years,” he added.
The Director of Spectrum Administration, NCC concluded saying; “We are encouraging indigenous companies by allowing international bidders to develop the economy and make sure that the industry blossoms so that local companies can have a space to play.”
Jumoke Akiyode
