Exclusive: Round two of Nigeria’s 5G spectrum auctions holds December 19

Telecoms stakeholders are meeting tomorrow in Lagos, ahead of Nigeria’s second round of 5G spectrum auctions holding December 19 in Abuja. Technology Times has reliably learnt that barring any unforeseen development, the Nigerian Communications Commission (NCC) will organise the auctions on December 19 in Abuja under plan to sell two licences in the second round of 5G spectrum auctions for the deployment of the fifth generation mobile technology in the country. The auctions slated for Monday, December 19 at the Hilton Hotel, is the climax of Nigeria’s plan to sell off two remaining 5G spectrum bouquets following the release of the information memorandum for the competitive bid by NCC earlier in October, this year. The reserve price, NCC says, “is the minimum price for one Lot of 100MHz TDD for a ten (10) year licence tenure fixed at Two Hundred and Seventy-Three Million and Six Hundred Thousand United States Dollars only (US$273,600,000.00) or its equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) rates at the time of the auction.” Round two of Nigeria's 5G spectrum auctions NCC is offering the licence at a reserve price of $273,600,000.00 for each 3.5GHz spectrum band slot that will enable winners to deploy 5G service in Nigeria. The telecoms regulator pegged $273,600,000.00 as the reserve price for each of the slots of the 3.5GHz spectrum band for 5G service in the auctions coming after round one held December 13, 2021, in Abuja. The reserve price, NCC says, “is the minimum price for one Lot of 100MHz TDD for a ten (10) year licence tenure fixed at Two Hundred and Seventy-Three Million and Six Hundred Thousand United States Dollars only (US$273,600,000.00) or its equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) rates at the time of the auction.” Intending bidders must transfer $27,360,000.00 representing the Intention-to-bid deposit by December 5 to prequalify, according to the Draft Information Memorandum (IM) released weekend for the upcoming auctions to sell off the “remaining lots of 2 x 100MHz in the 3.5GHz spectrum band to support 5G deployment in Nigeria.” Just like in round one of the spectrum auctions held last year, the upcoming bids will be open as applicants (domestic and foreign) are not required to be Licensed Network Operators but must be incorporated in Nigeria before the Licence is issued,” NCC says noting that “applicants will be subject to a set of pre-qualification criteria and only those that meet these criteria will be allowed to take part in the Auction.” According to the Information Memorandum, NCC “is offering the remaining 2 Lots of 100 MHz TDD Spectrum in the 3.5 GHz band ranging from 3400 - 3500 MHz and 3600 – 3700 MHz, totalling 200 MHz for auction. “On completion of the Auction, each Successful Bidder will be deemed to have been awarded a provisional licence and will be required to pay the balance (Winning Bid Amount Less the IBD) of the spectrum licence fees due to the Commission on or before 20 January 2023.” In a related development, Mr Reuben Muoka, NCC Public Affairs Director says that the telecoms regulator has convened an interactive session with the stakeholders that will take place tomorrow at the Marriot Hotel, Ikeja, Lagos. According to Muoka, the proposed auction of two lots in the 3.5GHz spectrum for the deployment of 5G services, set to take place in December 2022, is gathering steam and NCC, “has concluded arraignments to host an engagement session with stakeholders to discuss and provide more insight into the Draft Information Memoranda that will guide the process.” The Commission, he says, had earlier announced the plan to license additional lots in the 3.5 GHz spectrum band for the deployment of 5G in Nigeria. “The engagement session will feature comments and submissions made by the different stakeholders on the Draft Information Memorandum. The outcome of the submission will be taken into consideration by the Commission in publishing the Information Memorandum for the auction,” according to the NCC Public Affairs Director. “The process for the auction of the proposed lots of frequencies for 5G services, commenced on 21 October 2022 with the publication of the Draft Information Memorandum on the Commission’s website. Stakeholders have been advised, in an earlier statement and subsequent advertisements, by the Commission to study the Information Memorandum and make their comments and questions available to the Commission,” he says.

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