NCC Commences New Licensing Round for 2.3Ghz Frequency

Nigerian Communications Commission (NCC) has begun a new process for the sale of the 2.3GHz Frequency spectrum band following the cancellation of the earlier sale enmeshed in controversies, Nigeria CommunicationsWeek has learnt.

This will lay to rest the claims and counter charges that greeted the previous sale which saw the emergence of Mobitel, MultiLinks and Spectranet Ltd and the exclusion of Galaxy Wireless which claimed it met the requirements but was not named as one of the winners.

Piqued by growing outcry and deluge of petitions against the sale, Prof. Dora Akunyili, minister of Information and Communications cancelled the sale and stood by the cancellation of the initial sale insisting that the process lacked transparency and that due process was not followed.

The minister’s insistence is despite warnings of far reaching consequences of the cancellation by the NCC.

Nigeria CommunicationsWeek however gathered that both the ministry and the NCC have now agreed to commence a new process following the official release of the 2.3GHz frequency spectrum to the NCC on Tuesday.

The spectrum was released to the NCC by the National Frequency Management Council (NFMC) charged with carrying out bulk trans-sectoral allocation of spectrum to authorized statutory bodies at their 14th meeting which held in the Conference room of the Ministry of Information and Communications.

Dr. Abubakar Mohammed, permanent Ssecretary to the ministry,  in a statement Wednesday in Abuja said the new step is a way forward as earlier agreed between the minister and the NCC.

According to him “With this development the first step in the new sale process has begun”

While releasing the frequency band on Tuesday, Alhaji Ikra Bilbis, minister of State, Information and Communications who chaired the meeting noted that the ratification and release of frequency(s) by NFMC must be received before further processes are commenced given that the NFMC had in an earlier meeting questioned the right of NCC to commence the sale of the 2.3GHz frequency without a formal official release by the Council.

Some of the petitions against the 2.3GHz licensing round, concluded on May 8 is that the NCC only effectively gave the companies that indicated interest in the licence just a week (or five working days) within which to raise N1.3 billion to pay for each licence.
One of the petitions alleged that in this period of economic meltdown, five working days were not enough to raise the amount required before the deadline.

The NCC adverts were published Thursday, April 30, while May 1 was a public holiday and 2-3 fell on a weekend, leaving the firms just five working days to raise the fees.

It was also alleged that the exercise lacked transparency as the NCC was accused of adopting first-hand information approach with some companies said to have been favoured over others because they had prior information even before the commission placed the adverts in the papers with a week’s deadline given for payment.

One of the petitions called for a thorough investigation and alleged that one of the companies that was said to have scaled through by paying the required N1.3 billion actually paid only 1 per cent of the stipulated funds into the designated account the NCC mandated the companies to pay into.

The deluge of petitions led to the Economic and Financial Crimes Commission (EFCC) quizzing Ndukwe to answer allegations of flouting due process.

One of the allegations against the NCC was that Mobitel, one of the successful applicants, who was able to raise and pay the N1.3 billion in less than five days, was said to be indebted to the commission to the tune of N246 million in October last year, which it was unable to pay, leading the NCC to waive a total of N243 million for Mobitel, leaving a balance of N3 million for the firm to pay. 

Mobitel has faced a lot of challenges that threatened its existence since its President and CEO, Alaba Joseph, died in his office in 2005 following a failed bid by the receiver appointed by a bank to take over the company following a court order.

Ndukwe was also accused of spending beyond the budget limit and misleading the Federal Government into the award of contracts for community information centres in some states in the country.

Top officials of the NCC have been questioned by the EFCC on the matter. The Head of Finance and the Executive Commissioner for Engineering and Technical Standards were also said to have been questioned.