By Chinenye Anuforo
As Nigerian Communications Commission (NCC) took another step in the quest to make 5G (fifth generation) available in the country through its plan to license additional two lots in the 3.5 GHz spectrum band, telecommunications stakeholders have kicked against the reserve price pegged at $273.6 million.
The experts who gathered yesterday in Lagos at a Stakeholders’ Engagement Forum on the Information Memorandum (IM) for the planned second round of 3.5Ghz spectrum auction for the deployment of 5G network in Nigeria, pointed out that the $273.6 million set by the Commission as the reserve price was too high and urged the regulators to reduce it, considering Nigeria’s forex issues challenges among other factors.
The stakeholders also objected to MTN’s request to be allowed to participate in the upcoming auction in December 2022.
A representative for MTN Nigeria, Ikenna Ikeme, General Manager, Regulatory Affairs, said the company entered the last auction in 2021 with the expectation that it is an open market and should be allowed to participate in other auctions if the need arises.
He told journalists MTN won Lot B in 2021 and what NCC is currently auctioning is Lot A and C pointing out that the OEMs that manufacture the 5G equipment often produce for two lots, either A and B or B amd C.
Ikeme added that the telco having a licence for two lots provides it with the necessary equipment it requires for effective deployment to make the cost of service cheaper for consumers.
However, the representatives of telcos like Airtel and others kicked against it saying it will affect competition in the market.
On its own part, Airtel asked the NCC to set aside a slot of the 3.5GHz Spectrum for it at $273.6 million which was the price the Commission sold the last 2 slots in November 2021 considering the fact it participated in the said auction.
The NCC declined the request insisting that section 124 of the Nigerian Communications Act has already set out the process to assign licences.
“Our reserve price was set after necessary benchmarking. We arrived at some idea of what the price should be. The auction determined what the actual price should be. If we have only one party interested that will determine the price. If the reserve price throws up a higher price, that new price becomes the new price,” Ubale Maska, NCC Executive Commissioner, Technical Services, said.
Earlier in his opening remarks, the Executive Vice Chairman (EVC), Umar Garba Danbatta said the consultation meeting is in tandem with the Commission’s strategy of consulting with stakeholders in carrying out its regulatory functions.
“As a world class communications regulatory agency, we believe that our actions must be guided by decisions that take into cognizance the input from stakeholders in the industry. Therefore, we seek your active participation in these deliberations towards the licensing of the available two (2) lots in the 3.5GHz mid band Spectrum for the rollout of 5G services in Nigeria.”
He said following the successful auction of the initial two (2) lots in December 2021, the Commission has received requests to administratively licence the available lots at the previous auction fee. However, the Commission, in line with its powers under the Nigerian Communications Act 2003, has decided to licence the available lots in the 3.5GHz band through the Auction Method which is a transparent and efficient approach that can open up opportunities for new entrants as well as deepen competition in the industry.
“The Commission has committed enormous resources to ensure that harmonized Spectrum is secured and released in a timely manner for present and future rollout of services that will underpin the Fourth Industrial Revolution (4IR), including International Mobile Telecommunication (IMT-2020) services. We have kept ourselves abreast of developments at international fora, including ITU-R Study Groups to enable the allocation of strategic Spectrum to IMT services especially the IMT-2020 which has been on the front burner in the last two ITU-R Study Cycles. Hence, it is important that we ensure the timely release of the Spectrum bands necessary for 5G deployment to the industry to enable us reap the immediate and envisaged benefits of 5G technology, and facilitate the development of Nigeria’s Digital Economy to foster national growth “, Danbatta said.
•