NCC Auctions 2.3GHz Spectrum Worth N3.6Bn February

Nigerian Communications Commission (NCC) will auction the 2.3 GHz band for commercial assignment on a national basis during the week commencing February 17, Nigeria CommunicationsWeek can now report.

The spectrum is one unpaired block of 30 MHz, adjoining a 10MHz guard band with the adjacent 2.4 GHz band. The specification is: • 2360 – 2390 MHz – Spectrum on offer; and 2360 – 2390 MHz – Spectrum.

The apex regulator had earlier placed a reserve price of $23 million (about N3.6 billion) on the spectrum band to be auctioned to a sole provider of wholesale broadband services.

A reserve price represents the minimum amount an item is offered for in an auction. In this case the price has been fixed at N3.6 million for the 30MHz of 2.3 Gzhz frequency spectrum.

According to the NCC “The proposed licensing of 2.3 GHz spectrum has been influenced by the need to provide Retail Service Providers (ISPs and others users) with the requisite wholesale wireless access and bandwidth to provide service to their subscribers in consonance with the National Broadband Plan of 2013.”

The spectrum is offered by the Commission on a technology neutral basis.

Dr. Eugene Juwah, executive vice chairman, NCC, had told a telecoms forum in Lagos late last year, that the Information Memorandum (IM) for the race was billed to be released.

Coming on the heels of the announcement, a copy of the Information Memorandum revealed that interested bidders are expected to pay the sum of $2.3 million, which represents 10 per cent of the reserve price for the license and the Intention to Bid Document (IBD), the deposit payment required to be made by all Applicants as part of the pre-qualification process, the rule stated.

“The IBD is a commitment from the Applicant to pay at least the Reserve Price for the license, as specified in this IM, and to participate in the Auction process”, NCC said adding that the cleared funds must have reached the designated transaction account with the Central Bank of Nigeria (CBN) at 17.00 hours (NT) on February 7, 2014.

The planned auctions will be an all comers affair as companies that are duly registered in Nigeria can participate once they can pay the stipulated fixed price and meet other pre-qualification requirements.

On the other hand, although existing telecoms companies are not excluded from the auctions, they are expected to scale stiffer pre-qualification conditions.

According to the NCC “Already licensed operators participating in the process must fulfill all existing obligations to the commission including payments of Annual Operational Levy, Spectrum and National Numbering Plan fees prior to prequalification”.

NCC is issuing the last 2.3GHz in the upcoming bids, as three other companies have hitherto been awarded similar spectrum to deliver Internet service to end users, the auction plans states.

However, for roll-out of services, the Commission intends to follow the International Telecommunication Union (ITU) recommendation setting aside spectrum in the 2.3 GHz band for the provision of wireless broadband services.

On completion of the Auction process the Commission will issue a 10 year spectrum license and Wholesale Wireless Access Service License (WWASL).

The WWASL Operational License will attract an additional fee of N155 million for the winner that does not currently hold a Unified Access Service License (UASL).