2.3 License: Use-it or Loose it Clause Scares Bidders

Only a handful of the 40 applicants for the four slots of 20 MHz each in the 2.3 GHz frequency band to be issued by the Nigerian Communications Commission (NCC) will go ahead with the bidding process proper as the applicants have paused to digest the use-it or loose-it clause in the licensing regime, Nigeria CommunicationsWeek can now reveal.
The heavy fee at N1.4 billion for the 2.3GHz frequency band may also make it very unattractive because it has far less bandwidth compared to 2.5GHz, 3G and so on.
But applicants are actually scared of the use-it or loose-it clause, which in simple terms states that any company that is assigned spectrum and does not use it to deploy network services within the specified time frame will loose the license and forfeit the fees paid. That was inserted in the licensing regime to check frequency speculators and frivolous bidders.
There are still pockets of briefcase investors with licenses which have gathered dusts, who have held on to spectrums due to lack of funds or inability to hook up with technical partners.
Nigeria CommunicationsWeek gathered that NCC considered the 2.3 GHz frequency band very important and has taken time to ensure that winners fulfill the objectives for which it will be licensed.
The companies bidding for the 2.3 GHz frequency band are Oxygen Broadband Networks, Multi-Links Nigeria, VDT Broadband Communications, Gamjitel, Linkserve, Monarch Communications, Foris Telecoms Nig, Connet Centre Dot Net, AMSCO Telecoms (Naija WiFi), Vangate Limited, Accelon Nigeria, Ladan Communications, VOIX Networks, VDT Communications, One Communication, Spectranet, City Wireless World Ltd, Smile Communication Nigeria and Wideways Nigeria Ltd.
Others are Bod-Gee Ventures, Inmarches Communications, Starnet Telecoms, Choffan Communications, Softnet Global Network, Rahaman Communications, I-Comms Integrated Networks, Galaxy Wireless Communications, Danwill Communications, Moorside Nig, Hoval Technologies, Mobitel, Comium Data, G-Max Broadband, Solution Aand Systems, Reliance Globacom International, Westcom Wireless, Ng Com, Yentech Services and Anas Network Services
NCC aims to make services speedily available to the residents of Nigeria who desire the services.
The good news for the eventual winners is that they can use technologies - like WiMAX - which are able to make better use of 2.3GHz, through their spectral efficiency.