The Nigerian Communications Commission (NCC) has fixed the reserve price (RP) for the auction of the fifth-generation (5G) spectrum at N75 billion ($197.4 million).
The Commission made this known during a stakeholders’ engagement forum on a draft information memorandum for the 3.5 GHz Spectrum auction, held at Marriott Hotel, Ikeja Lagos.
In spectrum auctioning, reserved price means the starting point at which those interested in acquiring the slots could bid.
Meanwhile, NCC has scheduled December 10 for the mock auction, while the actual auction is fixed for December 13, 2021.
Interested operators are expected to pay 10 percent of the reserved price of $197.4 million to qualify to participate in the auction.
The commission plans to conduct the 5G spectrum auction with a reserve price starting at $197,400,000 for two lots of 100 MHz on offer in the first phase of the auction in the 3.5GHz band while an Initial Bid Deposit (IBD) equal to 10 percent of the reserve price will be adopted in line with the previous auction.
It sought the active participation of stakeholders in the deliberations that would follow towards the licensing of the 3.5GHz mid band for the deployment of 5G services amongst others in Nigeria.
The director, spectrum administration, NCC, Olutoyin Asaju while presenting highlights of the 5G information memorandum, disclosed that new entrants are allowed to participate in the auction in addition to existing licensees; and that only licencees with 100 percent regulatory compliance would be allowed to participate in the auction.
He noted that licencees with outstanding debts that have secured NCC’s approval for a payment plan will be allowed to participate.
“The auction comes with a 10-year Spectrum Licence and a minimum requirement of a UASL operational licence. New entrants or licencees without a UASL will be required to additionally obtain a UASL (Universal Access Service Licence) operational licence”, he said.
“The next step is auctioning of the spectrum which is under the purview of the regulator of the industry. However, for transparency and accountability in the sale of this common national heritage, the federal government thought it wise to involve relevant stakeholders in the process so that the general public is carried along “, he said.