Saturday, May 27, 2017

NCC Plans to Make $224m By Selling New Broadband Licences

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The Nigerian Communications Commission (NCC) is planning to auction 14 slots of 2.6GHz frequency for local broadband internet services as a means of raising $224m.

NCC made this known to the public in a memorandum released in its website over the weekend. According the memorandum, a reserved price of 16mUSD was set by the commission for a slot of the frequency spectrum. A slot of the frequency comprises two portions of 5MHz.

The auction for the licensing process was slated for May 16th 2016, in the Federal Capital Territory, Abuja. Interested businesses and individuals are required to send their bid details on or before 29 April.

The actual price for the frequency spectrum may be far greater than the $16m reserved price depending on the number of applications received and the bidding amount of the applicants.

NCC in the information memorandum issued promised to have a transparent auctions and in view of that, it has started the auction process for the 2.6GHz spectrum.

NCC said that the need to establish the space for the delivery of both current and future generations of broadband services to consumers in line with the 2013 National Broadband Plan inspired the proposed licensing of 2.6GHz spectrum.

According to the information memorandum, relevant industry stakeholders were consulted by the commission in order to determine the demand and to decide on the best means to give out the spectrum. The commission based on the outcome of the consultation as well as the developments in the international licensing trends observed has decided to license in slots of 5MHz the available 2x70MHz which the applicants will aggregate through the Spectrum auction process.

14 lots of 2×5 MHz paired spectrum in the 2.6GHz within the range of 2500 and 2570MHz and 2620 and 2690MHz (amounting to 2x70MHz) are available for auction according to the commission.

As contained in the IM, the spectrum could be utilized in providing any telecommunications service and it was provided by NCC on a technology neutral basis. NCC explained that it has the intention of following international telecommunication Union recommendation for roll-out of services.

NCC defined the Generic Reserve Price as the minimum price which is 16MUSD at which a lot would be sold for. It is the price at which a slot of 2 x 5MHz would be sold for.

Every detailed information about the proposed auction is contained in the Information Memorandum issued by NCC.

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