NCC to Auction Two Additional 5G Licences for $547.2m

The Nigerian Communications Commission (NCC) is set to offer two additional slots in the 3.5 Gigahertz (GHz) spectrum band for the deployment 5G network in the country.

It set the reserve price at $547.2 million, translating to $273.60 million for each licence.
NCC disclosed this at the weekend in its Draft Information Memorandum, titled ‘Information Memorandum on 3.5 GHz Spectrum Auction’, which it published on its official website.

According to NCC, the offering includes the remaining lots of 2 x 100 megahertz (MHz) in the 3.5 GHz spectrum band to support 5G deployment in Nigeria.
NCC last December, offered a 3.5GHz spectrum to MTN Nigeria Communications Plc and Mafab Communication to support their 5G rollout.

Since NCC awarded the 5G spectrum, MTN has launched its 5G network in selected locations while Mafab is yet to roll out its 5G network.
“The spectrum reserve price (RP) is the minimum price for one slot of 100MHz TDD for a 10-year licence tenure fixed at $273,600,000.00 or its equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) rates at the time of the auction, according to the memorandum.

he commission said it had developed a draft information memorandum (IM) to support the attainment of this objective through an auction process.
“The commission will hold a Public Consultation in respect of the draft information memorandum (IM) on November 15, 2022.

“This is in line with the commission’s participatory rule-making process for the communications sector, to give stakeholders and interested parties an opportunity to review and comment on the draft IM before the final document is published,” the memorandum further said.

The commission added that applicants for the spectrum do not have to be licensed network operators in the country but will need a unified access service licence (UASL) if their bid is successful.

In February 2022, MTN Nigeria and Mafab Communications Limited made their full payment of $273.6 million each for a 5G spectrum licence after emerging winners of the 3. 5 GHz spectrum auction.

While MTN has rolled out the 5G mobile network, Mafab suspended roll-out till December this year and got the approval of NCC for a five-month rollout extension, which ends December 31, 2022.