NCC Set Reserve Price 5G Auction at $197.4m for Mobile Network Operators
The Nigerian Communications Commission has set the reserve price for sale of Fifth Generation (5G) auction at $197.4 million for mobile network operators.
According to the 5G auction draft Information Memorandum released by the commission on Sunday, the telecom regulator plans to hold the auction in December.
NCC said it may offer two lots of 100 Megahertz each in the 3.5 Gigahertz band ranging from 3500 to 3600 MHz and 3700 to 3800 MHz for auction for the 5G network deployment in the country as it is empowered by Section 121 of the Nigerian Communications Act 2003.
In the 80-page Draft IM document on 3.5GHz Spectrum Auction uploaded by NCC yesterday, the Commission said that the Generic Reserve Price is the minimum price at which a Lot shall be sold.
NCC said this is the Reserve Price for one Lot of 100 MHz and has a value of $197,400,000.00 ($197.4m) or its equivalent in Naira at the prevailing Central Bank of Nigeria rates at the time of the auction. It stressed that each lot of 1 X 100 MHz represents one eligibility point.
The IM defines the process for the licensing of Spectrum in the 3.5 GHz band by the NCC. The Commission explained that the assignment process will comprise an auction to be held in Abuja, which is expected to take place during the week commencing December 13, 2021 and will be an Ascending Clock Auction with exit bids. Mock Auction is expected to hold first, December 6.
According to NCC, “the spectrum lot won by each bidder will be assigned on a nationwide basis covering all the states of the federation and the Federal Capital Territory.”
The Nigerian Communications Commission is the independent National Regulatory Authority for the telecommunications industry in Nigeria. The Commission is responsible for creating an enabling environment for competition among operators in the industry as well as ensuring the provision of qualitative and efficient telecommunications services throughout the country.
Over the years NCC has earned a reputation as a foremost Telecom regulatory agency in Africa. The Commission is hoping to catalyze the use of ICT’S for different aspect of national development. The Commission has initiated several programs such as State Accelerated Broadband Initiative and Wire Nigeria Project to help stimulate demand and accelerate the uptake of ICT tools and services necessary for the enthronement of a knowledge society in Nigeria.