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NCC Offers 14 Slots in 2.6 GHZ Spectrum Auction(AllAfrica Via Acquire Media NewsEdge) GOING by the release of Information Memorandum (IM) expected to guide the proposed auctioning of the 2.6GHz spectrum, the Nigerian Communications Commission (NCC) is offering 14 slots of 2 X 5 MHz FDD paired Spectrum band ranging from 2500 - 2570MHz and 2620 to 2690MHz (totalling 2 X 70 MHz). This IM defines the process for the licensing of paired Spectrum in the 2.6 GHz band by the NCC. Besides, a generic reserve price (GRP) of $16 million has been tagged on each of the 14 slots. The auctioning, which according to the Executive Vice Chairman of NCC, Dr. Eugene Juwah could be completed before the end of this year or early 2015 is expected to give Nigeria's broadband drive a new focus. Currently, according to the Minister of Communications Technology, Dr. Omobola Johnson, Nigeria's broadband penetration is at 6.2 per cent, "but government plans to grow it by five-fold to reach 30 per cent penetration by the end of 2018." Recalled also that earlier in February, Bitflux Communications won the 2.3GHz Wholesale Wireless Broadband license at the expense of Nigeria's telecoms giant, Globacom, the process of selection was adjudged by stakeholders as very transparent. Spectrum is a frequency band that is licensed to telecoms operators, which they use to deploy wireless services to telecoms consumers and 2.6 GHz spectrum is one of such spectra to be auctioned by the NCC to drive the provision of broadband services to Nigerians. Indeed, should the the auction sail through successfully, from the $16 million minimum GRP tagged on each of the 14 lots, the NCC may add additional $224 million to the Federal Government's pulse. NCC said in the IM that the GRP is "the minimum price at which a lot shall be sold, which is the Reserve Price for one Lot of 2 X 5 megahertz and has a value of $16 million. Each lot of 2 X 5 megahertz represents one eligibility point. An applicant that pays the IBD for six lots will have a total of six Eligibility Points." The IM also informed that, "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 i.e. 6 Eligibility Points is: $16 million X 6 = $96 million." According to the telecoms regulator to qualify to bid in the Auction, the Applicants will not have to be licensed network operators in Nigeria. However, the NCC has said that, "On completion of the auction process, the Commission will issue each winner a 10-year National Spectrum licence on a state-by-state basis and the Federal Capital Territory. "Each winner who does not currently hold a Unified Access Service License (UASL) which is the operational licence, will be issued one at an additional fee of N374.6 million." According to the NCC, the spectrum is offered by the Commission on a technology-neutral basis, adding that for roll-out of services, the Commission intends to follow the International Telecommunication Union (ITU) recommendation setting aside spectrum in the 2.6GHz band for the provision of advanced wireless broadband services. According to NCC, the IM is for information purposes only. It is made available on the express understanding that the recipient will only use it for the sole purpose of assisting the recipient in deciding whether it wishes to proceed with a further investigation of possible participation in the Auction. 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, the Commission said. As a necessary prelude to the licensing process, the Commission said it 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. According to NCC in the IM, 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. Copyright The Guardian. Distributed by AllAfrica Global Media (allAfrica.com). |