MTN Nigeria Communications, Airtel Africa Plc, and other operators seem to be preparing for the country’s second auction for the implementation of fifth-generation (5G) technology. MTN Nigeria is chasing a second 5G license less than a year after securing one of the two.
At the Nigerian Communications Commission’s stakeholder engagement on the draft information memorandum (IM) on the 3.5 GHz spectrum auction, telecom operators were upset by what MTN said (NCC).
A representative for MTN Nigeria was worried about a part of the IM that made it sound like operators with active 5G licenses would not be able to bid on new licenses in December 2022. The clause states that any licensee of the commission or company with up to 100 MHz in Nigeria’s 3.5 GHz band would not be permitted to take part in the auction.
He said that the business joined the last auction in 2021 because it thought it would be an open market and could join future auctions if needed.
MTN won Lot B in 2021; the NCC is auctioning Lots A and C. The telecom said 5G equipment is generally made in two batches, A and B or B and C. The operator believes having a license for two lots gives it simple access to deployment equipment and lowers customer costs.
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5G in Nigeria
The fifth-generation wireless (5G) technology will increase transfer speeds by up to 10 gigabits per second (Gbps), among other things. Telecom companies and nations throughout the world are working feverishly to get a head start on adopting this technology.
Four 5G licenses are in Nigeria. Two licenses have been auctioned, although only one has debuted commercially. The operators worry that giving MTN two of the four licenses gives it an unfair edge in the upcoming 5G market.
Airtel and other carriers say it goes against the idea of competition for one telco to have multiple licenses while others don’t.
Ubale Maska, the NCC’s executive commissioner for technical services, said MTN’s request isn’t a first in the telecom business since Nigeria is an open market.
Airtel wants 5G without an auction.
Airtel Africa sought the NCC to set aside a slot of 3.5 GHz spectrum for $273.6 million, the amount the commission sold the previous two slots for in November 2021. Offer refused.
Our reserve price was decided following benchmarking. We have a price in mind. The auction set the price. If just one person is interested, the price will be set. “If the reserve price rises, it becomes the new price,” said Maska.
Executive vice chairman of the NCC, Umar Garba Danbatta, said all petitions would be reviewed before the auction.
“Generating revenue for the federal government is not the goal.” The money we’re going to make won’t have anything to do with it. The most recent auction set the price. “No matter when the auction was held, we will always refer to the reserve price,” Danbatta said.