NCC raises 5G network bid price, as Airtel, Glo, others get another bid chance

Ten months after MTN Nigeria and Mafab Communications won the bids for the fifth generation (5G) network spectrum, the Nigerian Communications Commission (NCC) is set to issue another spectrum.

In December 2021, both MTN Nigeria and Mafab Communications had outbid Airtel, securing the spectrum at $273.60 million, surpassing the base price of $197.4 million.

The reserve price for the next 5G spectrum acquisition is now placed at $273.60 million, and with companies like Airtel, Globacom and 9mobile yet to secure the spectrum, NCC over the weekend, announced an opening for them to partake.

Although, since both MTN Nigeria and Mafab Communications won the bid last year, only the former has deployed the 5G across seven states since August 24, 2022; Lagos, Abuja, Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri.

Owners of Mafab were given a five months extension, which ends in January to also roll out the 5G network.

Their market rivals, alongside unlicensed operators, will now battle for the remaining lots of 2 x 100 megahertz (MHz) in the 3.5 GHz spectrum band, starting from the reserve price of $273.60 million.

Yet to be licensed operators are expected to obtain a Unified Access Service License (UASL) if their bid is successful, Ripples Nigeria gathered.

Read also:Finally, NCC includes Elon Musk’s Starlink on Nigeria’s ISP list

NCC stated, “The Reserve Price (RP) is the minimum price for one lot of 100MHz TDD for a ten (10) year licence tenure fixed at Two Hundred and Seventy-Three Million and Six Hundred Thousand United States Dollars only (US$273,600,000.00) or it’s equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) rates at the time of the auction.”

It was gathered that NCC will hold a Public Consultation in respect of the draft information memorandum (IM) on November 15, 2022, after the industry regulator developed a draft IM that will be used for the auction process.

“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.” NCC said.

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