After emerging as the winners of the 3.5gigahertz(GHz) spectrum auction conducted on December 13, 2021, for the deployment of 5G technology, MTN Nigeria and Mafab Communication as been given a headway by The Nigerian Communications Commission (NCC) to begin the rollout of 5th technological services (5G) on August 24, 2022.
The commission disclosed confirming the issuing of the final letters of award of the fifth-generation spectrum licenses to MTN and Mafab Communications, according to the commission.
According to a statement released by the NCC, the commission’s administration, headed by Executive Vice Chairman Prof. Umar Danbatta, acknowledged this to the Board of Commissioners during their recent Special Meeting.
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Part of the statement said, “With the issuance of the final letters of awards of 5G spectrum and in line with the 5G auction’s Information Memorandum, the two licensees are now expected to accelerate deployment of 5G network that will usher Nigeria into a more robust Fourth Industrial Revolution and a more digitized Nigerian economy among the comity of nations.
“In line with the terms and conditions of the 5G license, the licensees are expected to commence the rollout of 5G services, effective from August 24, 2022.’
More about the 5G Spectrum
After the Final letters of award of the 5G spectrum have been issued, two licensees are now expected to accelerate the deployment of the 5G network, which will usher Nigeria into a more robust Fourth Industrial Revolution (4IR) and a more digitized economy. This is consistent with the Auction’s Information Memorandum (IM).
The Benefit of the 5G spectrum
“The 5G network, when deployed, will bring a lot of benefits and opportunities that will engender accelerated growth and smart living in the country. The technology is also expected to bring substantial network improvements, including higher connection speed, mobility, and capacity, as well as low-latency capabilities.”
How the 3.5 gigahertz Spectrum Auction Went
After 11 rounds of bidding for eight hours, during the 3.5 gigahertz (GHz) spectrum auction for 5G technology was held in Nigeria, MTN Nigeria and Mafab Communication emerged as the two winning bidders, with Airtel opting out of the auction.
NCC reported that “As part of the auction process emplaced by the Commission in the Information Memorandum (IM), three companies, namely MTN Nigeria, Mafab Communications Ltd, and Airtel Networks Ltd submitted bids with an initial bid deposit (IBD) of $19.74 million, representing 10 percent of the Reserve Price of the 3.5GHz Spectrum by the close of the Bid submission date of November 29, 2021.
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Following the successful auction on December 13, 2021, and the emergence of MTN and Mafab as winners, they were required to pay the balance of the bid amount of $253.86 million on or before February 24, 2022.
However, aside from the $273.6 million payment, MTN paid an additional $15.9 million, being the bidding sum is offered at the assignment state of the spectrum auction, making it clinch its preferred Lot 1 (3500-3600 Megahertz-MHz) in the 3.5Ghz spectrum; while, Mafab Communications, which bided lower at the assignment stage, consequentially settled with Lot 2 (3700-3800Mhz) at no extra cost.”