NCC targeting about $224 million from issue 14 licences in 2.6GHz auction process

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From Benjamin A Ameh, Lagos

The Nigerian Communications Commission, NCC, planed to issuing about 14 new licenses in the ongoing auctioning process of the 2.6GHz spectrum band to avoid monopoly and engender competition in the market.

Executive Vice Chairman of the Commission, Dr. Eugene Juwah, disclosed this while speaking on the resumption of the licensing process of the spectrum in Abuja adding that the proposed auctioning of 2.6GHz spectrum band in the second quarter of this year, precisely on May 4, would unleash the expected broadband penetration in the country and bring the desired competition in the nation’s broadband market.

The NCC Boss was represented by the Director of Public Affairs, Tony Ojobo, also explained that the Commission is targeting to rake in about $224 million from the auction of 2.6GHz spectrum band in May this year.

“This is a very much needed spectrum that will unleash the expected broadband revolution in Nigeria and because of the capacity ability a particular spectrum has, in terms of broadband utilization, we thought it necessary for the media to get the first hand information on the Information Memorandum that will follow the auction of this GHz spectrum band,” he added.

Juwah therefore urged prospective bidders to look up to the information memorandum, on the Commission’s website and be guided accordingly. The IM defines the process that the Commission adopted for the licensing of 2×70 Megahertz (MHz) paired available in the 2.6GHz band. The IM also provides information on the Nigerian telecommunications market, details of the deal to be made available, pre-qualification process, the auction process and indicative timetable among others.

Also speaking during the event, the Director, Spectrum Administration, in the Commission, Engr. Austin Nwaulune, said the targeted sum is what the Commission is expecting to reap from the auction exercise at reserved price but is still hopeful that the process would progress to auction stage, which would increase the expected income.

“We expect to reap about $224m from the exercise based on the reserved price but then, if the process progress to into auction stage, which we expect, I will not be able to tell what the eventual price will be,” he said. The director said the proposed exercise was influenced by the need to open up the space for the delivery of present and future generations of broadband services to subscribers in consonance with the Nigerian national Broadband Plan of 2013-2018.

Nwaulune, who described the 2.6GHz spectrum band as key for both new entrants and incumbent operators, said the Commission arrived at this decision after a wide consultations with relevant industry stakeholders to determine the best way to issue spectrum.

According to him, the spectrum will be offered on technology neutral basis but for rollout basis, the Commission will follow the International Telecommunications Union, ITU, recommendations, setting aside spectrum in the 2.6GHz band for the provision of Advanced Wireless Broadband Services.

“Based on these and observations of developments in the international licensing trends, the Commission has decided to license the available 2×70 MHz slots in slots of 5MHz to be aggregated by applicants through the spectrum auction   process,” said Nwaulune, adding that the reserved price for the auction is pegged at $16 million for   a lot of 2×5 MHz.

 


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