NCC Beckons Investors for 2.6GHz Licence Auction

Nigerian Communications Commission (NCC) on Thursday said that it would auction 14 slots of 2.6GHz Spectrum for $224 million and beckoned on local and foreign telecommunications investors to avail themselves of the opportunities in the spectrum licence auction.

Austine Nwaulune, director, Spectrum Administration at NCC, said that the auction will take place from May 16 and that the success of the exercise would help the country achieve the 30 per cent broadband target set in the National Broadband Plan 2013-2018.

“The license is not only open to existing operators, people and companies from other part of the world can come and bid as far as they can comply with the rules. As at today, we have not checked if people or companies have applied or not. But we need to get the process moving. Companies that eventually participated and become winners have within one year to roll out services. The IM stated it clearly, ‘Use it or lose it’”, he stressed.

On the importance of the 2.6GHz spectrum to Nigeria, Nwaulune disclosed that about 108 networks across the globe have rolled out on the frequency, stressing that countries including Ghana, UK, USA among others currently operate on it, “as such Nigeria cannot afford to be left out.”

He added that practically before now, so many operators in the country have been demanding for the release of more spectrum, saying that the auction would provide an opportunity for the service providers to roll out more services in the country on a larger scale.

The spectrum is offered by NCC on a technology neutral basis and can be used to provide any telecommunications services. For roll-out of services, NCC intends to follow the International Telecommunication Union (ITU) recommendation setting aside spectrum in the 2.6GHz band for the provision of advanced wireless broadband services.

The IM defines the process that NCC has decided to adopt for the licensing of 2 X 70 MHz paired Spectrum available in the 2.6 GHz band. NCC is offering 14 Lots of 2 X 5 MHz FDD paired spectrum in the 2.6 GHz band ranging from 2500 – 2570MHz and 2620 to 2690MHz (totaling 2 X 70 MHz) for auction. The Generic Reserve Price (GR) is the minimum price at which a Lot shall be sold, which is the Reserve Price for one Lot of 2 X 5MHz and has a value of $16,000,000.00 only.

Each lot of 2 X 5 MHz represents one (1) eligibility point. An applicant that pays the IBD for six (6) lots will have a total of six Eligibility Points. The Reserve Price (R) for an applicant will be calculated as the GR multiplied by the number of lots (N) applied for by the applicant.   For example, Reserve Price for an applicant that applied for six lots i.e. six Eligibility Points is: US$16,000,000.00X 6 = US$96,000,000.00.