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The Nigerian Communications Commission (NCC) is taking another significant step in advancing Nigeria’s digital economy with the second round of the 3.5GHz spectrum auction for the deployment of fifth-generation (5G) services. This move is poised to not only accelerate the nation’s technological transformation but also bolster the federal government’s revenue generation.
Scheduled for 9:00 AM on November 15, 2022, at the Marriott Hotel in Ikeja, Lagos, the NCC will engage with key telecommunications stakeholders to discuss the final details of the auction for two additional lots in the 3.5GHz spectrum band. These two lots will be crucial in enhancing the country’s 5G capabilities, which are expected to drive economic growth, improve connectivity, and open up new opportunities for businesses and consumers alike.
In October 2022, the NCC announced plans to license two more 100MHz TDD lots in the 3.5GHz spectrum for 5G technology, setting a starting price of $273.6 million. The auction is set to take place in December 2022, with a series of preparatory steps already underway. Today’s session will allow stakeholders to provide feedback on the Draft Information Memorandum (IM) published by the NCC, which will inform the final version of the document. This will ensure that the auction process is transparent, well-structured, and inclusive of all relevant viewpoints.
The auction process officially began on October 21, 2022, with the publication of the Draft IM on the NCC’s website. The final IM will be published by November 18, and applications for participation will open on November 21. The process will reach a pivotal point on December 5, 2022, when the deadline for the submission of applications and the payment of the mandatory Intention-To-Bid Deposit (IBD) is set to close. Qualified bidders will be notified the same day, with the Mock Auction scheduled for December 16, and the actual auction set to take place on December 19, 2022.
The auction will follow the Ascending Clock Auction format, a method designed to ensure transparency and fairness. On December 21, 2022, provisional bid winners will be announced, and provisional licenses will be awarded. By January 20, 2023, the payment for the Spectrum License and Operational License (where applicable) will be due, marking the final step in the process, which will culminate in the publication of the full payment results on January 23, 2023.
This auction follows the groundbreaking success of the first transparent 5G auction in Africa, held by the NCC on December 13, 2021. MTN Nigeria and Mafab Communications Ltd emerged as the winners, each securing one of the two 100 MHz TDD lots at the price of $273.6 million. This historic auction marked a major milestone in Nigeria’s journey toward becoming a key player in the global digital economy.
As the country moves forward with this next phase of 5G deployment, the NCC’s efforts are not only expected to enhance connectivity and economic development but also generate significant revenue for the Nigerian government. The successful auction and rollout of 5G technology will be a critical catalyst for Nigeria’s digital transformation, positioning it to compete in an increasingly connected world.
