Nigeria is set to auction two additional 5G licences which should generate $547.2 million if we go by the reserve price $273.6 million per licence as stated in the Draft Information Memorandum (IM)
The auction will be co-ordinated by the Nigerian Communications Commission (NCC). In the exercise of its functions under the Nigerian Communications Act 2003 (the Act), the NCC has published the Draft Information Memorandum (IM) for the auction of the lots of 2 x 100MHz in the 3.5GHz spectrum band to support 5G deployment in Nigeria.
In a public notice by the commission signed by Reuben Muoka, Director – Public Affairs, the Commission will hold a Public Consultation in respect of the Draft IM on Tuesday 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.
According to the commission, “the process for the licensing of the 3.5 GHz Spectrum band is predicated on technological advancements, demand for broadband services and applications in line with international trends. This is also in furtherance of the objectives of the Federal Government of Nigeria as set out in the National Digital Economy Policy and Strategy (NDEPS), 2020 – 2030 and the Nigerian National Broadband Plan (NNBP), 2020 – 2025.”
In December 2021, the Commission conducted an auction of the first two (2) lots of 100 MHz TDD in the 3.5 GHz band which MTN Communications Nigeria and Mafab Communications Limited emerged winners. They made full payment by the deadline of February 24, 2022, as set by the Commission.
Interested applicants for these two new lots are submit their applications by 17.00 hours West African Time (WAT) on 05 December 2022.
The next step for applicants, in accordance with the full instructions laid out within this IM, is to submit a completed application, including appropriate template documentation and confirmation of transfer of the Intention-to-Bid Deposit (IBD), by 17.00 hours West African Time (WAT) on 05 December 2022.
To qualify to bid in the Auction, an applicant does not have to be a Licensed Network Operator in Nigeria. However, any successful Bidder without a Unified Access Service Licence (UASL) will be issued one and is expected to pay the specified Licence fee in addition to the Auction winning bid price. The tenure for the UASL will be Ten (10) years, subject to renewal.
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.
