For the deployment of the 5G network across the country, the Nigerian Communications Commission (NCC) has begun plans to auction two more slots in the 3.5 GHz band.
The NCC published a document titled ‘Information Memorandum on 3.5 GHz Spectrum Auction’ on its website.
In the memo signed by the Commission’s Director of Public Affairs, Reuben Muoka, the reserve price was set at $547.2 million, which translates to $273.60 million for each licence. The offering would include the 2 x 100 megahertz (MHz) in the 3.5 GHz spectrum band to support 5G deployment in Nigeria.
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The memorandum reads in part: “The spectrum reserve price (RP) is the minimum price for one slot of 100MHz TDD for a 10-year licence tenure fixed at $273,600,000.00 or its equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) rates at the time of the auction,” according to the memorandum.
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The commission said it had created a draft information memorandum (IM) to facilitate the achievement of this goal through an auction process.
According to the memorandum, “The commission will hold a Public Consultation in respect of the draft information memorandum (IM) on 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.”
The commission added that applicants for the spectrum do not have to be licenced network operators in the country but will need a unified access service licence (UASL) if their bid is successful.
NCC’s Previous Auctions
Recall that NCC had in December 2021 auctioned the 5G spectrum licence for a 10-year period to MTN Nigeria Communications Plc and Mafab Communications to support the 5G rollout.
Since NCC was awarded the 5G spectrum, MTN has launched its 5G network in selected locations, while Mafab is yet to roll out its 5G network.
The auction raised a significant amount for the Federal Government and set the stage for the next phase in Nigeria’s 5G roadmap.
In February this year, Mafab Communications Limited and MTN Nigeria completed the payment of $273.6 million each for a 5G spectrum licence after winning the bid of the 3. 5 GHz spectrum auction.
Since winning the bid, MTN has rolled out the 5G mobile network, whereas Mafab slated the roll-out till December this year and got the approval of NCC for a five-month rollout extension, which ends December 31, 2022.
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5G Network
5G is the 5th generation mobile network. It is a new global wireless standard that is a sequel to 1G, 2G, 3G, and 4G networks.
It enables an updated type of network which is created to link virtually everyone and everything, as well as machines, objects, and devices.
5G wireless technology is designed to provide higher multi-Gbps peak data speeds, ultra-low latency, massive network capacity, more reliability, increased availability, and an improved uniform user experience to more users.
With higher performance and improved efficiency, 5G will empower new user experiences and connect new industries.