*Telecoms operators at a recent stakeholder engagement forum in Lagos recommend an auction reserve price of $50million for the 3.5 GHz spectrum band for telecoms regulator鈥檚 consideration, as the Nigerian Communications Commission fixes December 13, 2021 new auction date ahead of the deployment of 5G networks in the West African聽country

Gbenga Kayode | 绿帽献妻

As the country prepares to roll out the Fifth Generation (5G) networks across the states of the Federation, the Nigerian Communications Commission (NCC) has shifted the auction date for the 3.5 Gigahertz (GHz) spectrum band to Monday, December 13, 2021.

绿帽献妻 reports the telecoms sector regulator had organised the stakeholder engagement forum Thursday, November 4, 2021, in Lagos, where the the key stakeholders and other participants discussed the draft Information Memorandum (IM) for the upcoming auction of the 3.5 GHz spectrum band.

A cross-section of the NCC team and other key stakeholders at the recent Stakeholders’ Consultative Forum in Ikeja, Lagos

The Commission鈥檚 Information Memorandum is a comprehensive document that defines the process emplaned by the NCC for the auctioning of the spectrum band to telcos.

RELATED: NCC Holds Stakeholder Engagement Forum On 5G Spectrum Auction in Lagos

The document also provides related information on the Nigerian telecommunications market, details of the spectrum to be made available, the pre-qualification process, the auction process as well as the indicative timetable.

Why the Stakeholders鈥� Consultative Forum

According to the telecoms regulator, the Commission held the recent Stakeholders鈥� Consultative Forum in order to fast-track implementation of the deployment plan for the much expected rollout of 5G networks in the country.

The 5G technology is expected to facilitate several emerging technologies, generate innovative new use cases, spur significant socioeconomic growth and create jobs, said the NCC.

RELATED: NCC鈥檚 Policy Engagement With Stakeholders For Quality Consumer Experience, Says Danbatta

Earlier at the forum, Dr. Ikechukwu Adinde, Director of Public Affairs of the Commission, 聽disclosed that the forum would afford industry stakeholders the opportunity to discuss the draft IM for the forthcoming 3.5 gigahertz (GHz) spectrum band auction slated for December 13.

Dr. Adinde noted that the decision to host the stakeholder engagement was in consonance with the provisions of the Nigerian Communications Act (NCA) 2003 and NCC鈥檚 鈥渄istinctive tradition of robust stakeholder consultation鈥� on all telecoms regulation-related issues in the Nigerian economy.

It is recalled the Commission, June 2021, inaugurated a committee to develop the draft Information Memorandum for the auction of 3.5 GHz spectrum band, which will be utilised for successful deployment of the 5G technology services in the country.

NCC鈥檚 auction reserve price of 3.5Ghz spectrum band

绿帽献妻 reports Engr. Oluwatoyin Asaju, Director of Spectrum Administration of NCC, in his presentation at the Stakeholders鈥� Consultative Forum on the draft IM for 3.5Ghz spectrum auction, in Lagos, disclosed the Commission鈥檚 position on 聽the price.

Engr. Asaju restated that a reserve price of average of $100million for 3.5-3.6 and 3.7-3.8 GHz spectrum band has been fixed for any telecommunications companies operating in Nigeria.

RELATED: 5G Networks Safe, Beneficial As Spectrum Auction Price Starts From N75billion 鈹�NCC

The NCC Director of Spectrum Administration also noted that as a condition, interested telecoms operators are expected to make a 10 percent reserve price deposit for the said spectrum band to activate the 5G technology.

Telecoms companies鈥� responses to spectrum band pricing, others

The Mobile Network Operators (MNOs) in their response at the stakeholder engagement forum, however, raised some issues they noted required attention and possible review before the official auctioning date of the spectrum band.

Leading Mobile Network Operators (MNOs) in Nigeria

The telecommunications companies, in view of the Commission鈥檚 reserve price of average of $100million with 10 percent deposit, rather recommended a 3.5 GHz spectrum band auction reserve price of $50million.

RELATED: Stakeholders, Broadband Access Critical To Effective 5G Deployment, National Development 鈹�Pantami

In his presentation on behalf of other telcos at the stakeholder engagement, Engr. Abraham Orisadare, Project Director of MTN Nigeria, stated that an auction reserve price of $50 million is preferable by the telcos.

According to Osadare, staggered payment option should be accepted by the NCC in regard to the prevailing economic situations in the country.

The telecoms firms said the balance should be paid over 鈥渁 five-year period鈥�, while taking into consideration the effect of the damaging Coronavirus (COVID-19) pandemic on the industry in particular and the economy at large.

Similarly, the MNOs are also canvassing for a 20-year duration for the renewal of licences to promote efficiency in the all-important sector of the country鈥檚 economy.

According to the telcos, this recommendation will also enable them to make the transition process more feasible for improved planning and implementation of the 5G rollout.

READ ALSO: NCC Urges Stakeholders To Activate Digital Economy For Diversification, Transformation

For instance, leading mobile operators such as MTN Nigeria and Airtel, under the aegis of GSMA, said the N75billion ($197.4 million) originally set as a reserved price for the spectrum band would limit many players from participation in the auctioning of the spectrum.

In their recommendation on the IM draft to the NCC, the telcos reportedly said the spectrum price was 鈥渢oo expensive and higher than what obtains in most other countries that have rolled out 5G.鈥�

The telcos further stated the industry regulator should encourage more participation by lowering the reserve price, urging the Commission to also consider the telecoms market realities in the Nigerian economy as of now.

It was gathered the telcos noted 鈥渇or us in the sector, we are most concerned about the cost of 5G.

鈥淭his new direction will require a lot more investment, and the current infrastructure might not be sufficient and efficient for it.鈥�

Engr. Gbenga Adebayo, Chairman of Association of Licensed Telecommunications Operators of Nigeria (ALTON) also remarked there is a need to address the issue of cost of the 3.5 GHz spectrum band auction reserve price.

Adebayo said in order not to have the 5G technology that is only glamorously deployed and not efficient in the country, the NCC should review the cost issue.

Telecoms regulator’s remarks on telcos鈥� recommendations

In response to the telecoms operators鈥� expressed concerns, and suggestions on issues of cost and related matters, the Nigerian Communications Commission expressed its commitment and readiness to ensure that 5G deployment succeeds in the country.

The NCC, nonetheless, maintains that each of the telecoms service providers should roll out in each of the six geopolitical zones of the country for effective and widespread reach of services.

According to the regulator, though the Commission had considered several factors before it came up with the spectrum band price, it would consider the duration of the licence in respect of the successful deployment of 5G networks as well as quality telecoms consumer experience in Nigeria.

Kindly Share This Story