The Nigerian Communications Commission (NCC) has enriched the government’s coffer with a sum of $60 million (N24.597 billion) realised from operators bidding for the 3.5 gigahertz spectrum to deploy fifth generation network (5G) in Nigeria.
Earlier today, the commission announced that three operators have emerged as successful bidders to contend at the main spectrum auction slated for Monday, December 13, 2021, after a mock auction on December 10.
While the telecoms regulator pegged the auction price for the spectrum at $200 million, bidders are expected to pay a non-refundable 10 per cent fee of $20 million each as part of the criteria stipulated in the Information Memorandum (IM) for the auction exercise.
The three successful bidders, according to the NCC, are MTN Nigeria Plc., Airtel Networks Limited, and Mafab Communications Limited which is a new operator licenced in 2020 by the commission.
No doubt, each of the contenders has fulfilled the 10 per cent fee payment, among other conditions, as at November 29 set as deadline for submission of bid interest.
Meanwhile, the NCC has reassured transparency in the exercise to maintain its unimpeachable record and reputation based on precedents of open and transparent spectrum auctions over the years, which had earned it both local and international recognition.
The Build-Up
In a statement from the NCC, the commission recalled the following as part of the regulatory processes leading to the auction of the 3.5GHz spectrum, the Commission had carried out the following activities:
- October 7, 2021, the Commission exposed the Draft Information Memorandum (IM) on the auction of the 5G spectrum on its website (ncc.gov.ng) and issued a public notice in major media channels, including print, electronic and broadcast media. Comments on the draft IM were received by the Commission up until October 28, 2021.
- On November 3, 2021, the Commission held a stakeholders’ engagement forum in Lagos at which comments received from a broad segment of stakeholders, including the major operators were exhaustively discussed and considered.
- On November 10, 2021, the Commission published the Final IM, and Stakeholders’ comments there on, on its website and national dailies, and set the deadline for the submission of bids on Wednesday, November 24, 2021.
- On November 23, 2021, just a day before the deadline for the submission of bids, Air Traffic Controllers went on strike, disrupting flights operations in Lagos.
- As a responsive regulator, and following concerns expressed by industry stakeholders and potential bidders for the 5G Spectrum, about the possibility of meeting the deadline in light of the flight disruptions, the Commission’s Board approved an extension of the deadline from Wednesday, November 24, 2021 to Monday, November 29, 2021.
- On December 1, 2021, the Commission announced that at the close of the bid submission date of November 29, 2021, three companies, namely MTN Nigeria, Mafab Communications Ltd and Airtel Networks Ltd had successfully submitted their bids in line with the requirements of the IM.
- The public must also be aware that all three bidders are existing licensees of the Commission under different license categories.
