NCC Pegs 2.6GHz License @ $16m, to Name Infracos

Nigerian Communications Commission (NCC) at the weekend pegged the reserve price of each license on the 2.6 GHz band at $16 million and invited interested participants in the auction of frequency spectrum, touted to possess the potential to usher in a revolution into the broadband process.

The reserve price (R) for an applicant will be calculated as the GR multiplied by the number of lots (N) applied for by the applicant.

For example, reserve price for an Applicant that applied for 6 Lots that is 6 eligibility points is: $16 million X 6 = $96 million

The Commission offers 14 Lots of 2 X 5 MHz FDD paired spectrum in the 2.6 GHz band ranging from 2500 – 2570MHz and 2620 to 2690 MHz (totaling 2 X 70 MHz) for auction.

Each lot of 2 X 5 MHz represents 1 eligibility point. An applicant that pays the Intention-to-bid deposit (IBD) for 6 lots will have a total of 6 eligibility Points.

According to the NCC, the frequency will be awarded to winning bidders in multiples of 2 X 5 MHz Lots aggregated in contiguous arrangements.

The process for the licensing of the 2.6 GHz spectrum is predicated on demands by operators for additional spectrum to enable the provision of advanced wireless broadband services in line with international trends.

This is also in furtherance of the objectives of the federal government of Nigeria as set out in the Nigerian National ICT Policy 2012 and the Nigerian National Broadband Plan 2013.

As a necessary prelude to the licensing process, the Commission conducted stakeholder consultations to determine the demand level for the spectrum, the approach to licensing and the potential interest of the consumers amongst other objectives.

Based on the positive outcome of these consultations, and the direction of the National Broadband Plan, the Commission has decided to undertake an auction to award spectrum licenses to build and operate networks in this spectrum band to provide advanced broadband wireless services to subscribers in Nigeria.

To qualify to bid in the auction, the applicants will not have to be licensed network operators in Nigeria.

Meanwhile, Nigerian Communications Commission is to announce the successful bidders of Infrastructure Companies (Infracos) to provide metro fibre infrastructure in Lagos and North Central regions of the country with the aim of achieving the vision of the national broadband plan.

The Commission also at the weekend released the information memorandum for the auctioning of the 2.6GHz spectrum license to usher in a revolution into the broadband process and invited interested participants in the Auction of Frequency Spectrum Licenses.

Commenting on the Infracos, Dr. Eugene Juwah, executive vice chairman, NCC, said that the Commission received the bid for the Infrastructure Companies for Lagos and North Central and would in the next few weeks announce the successful winners.

Juwah who spoke through Mr. Tony Ojobo, director, Public Affairs, at a recent event in Abuja,  did not give names of the bidders but said that the bids are in the process of evaluation and is being done in collaboration with a consultant.