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The Nigerian Communications Commission (NCC) has confirmed its decision to proceed with the scheduled auction of the 3.5GHz spectrum, crucial for the deployment of fifth-generation (5G) mobile technology, despite appeals from some telecommunications operators to pursue administrative licensing.
In a recent statement at a stakeholder forum aimed at finalizing the Information Memorandum (IM) for the December 19, 2022 auction in Abuja, NCC Executive Vice Chairman, Prof. Umaru Garba Danbatta, clarified that the Commission would not entertain the request to award the 3.5GHz spectrum through administrative licensing. This came after operators urged the NCC to consider issuing the spectrum directly, citing the need for a more streamlined approach to accelerating the rollout of 5G services in Nigeria.
The NCC, in response, emphasized the importance of maintaining a transparent and competitive process. The auction will cover the remaining two lots in the 3.5GHz band, with a total of 200 MHz available in the 3400-3500 MHz and 3600-3700 MHz ranges. The Reserve Price (RP) for each 100 MHz TDD spectrum lot has been set at a staggering $273.6 million USD, or its equivalent in naira at prevailing Central Bank of Nigeria (CBN) rates.
This auction follows the successful sale of the initial 3.5GHz spectrum lots in December 2021. Prof. Danbatta revealed that the NCC had received several requests from operators to administratively license the remaining lots at the same price point as the previous auction. However, the Commission remains resolute in its stance to move forward with the auction, maintaining its commitment to fairness and market-driven pricing.
As Nigeria edges closer to fully embracing 5G technology, the NCC’s decision to stick to a competitive auction process underscores its commitment to ensuring transparency, fairness, and equal opportunity for all market players. The December 19 auction will mark a significant step in the country’s 5G rollout plans, promising faster, more reliable mobile services for Nigerian consumers and businesses alike.
