The reserve price for the new 5G spectrums has been set by the Nigerian Communications Commission (NCC) at $273.60 million for a 10-year license term.
The NCC announced it will auction off two 100MHz frequencies in the 3.5GHz spectrum band in a document titled “Information Memorandum on 3.5 GHz Spectrum Auction.”
“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 its equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) rates at the time of the auction.
“The fee for the ten (10) year Spectrum Licence will be determined at the Auction. The Opening Bid will be an increment higher than the Reserve Price in the Opening Round of the Auction.
“A successful bidder at the Auction will be expected to pay a sum equal to the amount of the winning bid minus the IBD, as well as an operational Licence fee (where applicable),” the Commission stated.
The NCC further stated that a draft Information Memorandum (IM) had been created to aid in the accomplishment of this goal via an auction procedure.
“The commission will hold a Public Consultation in respect of the draft IM on November 15, 2022,” it said.
“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.”
The NCC clarified that while applicants are not need to be Nigerian network operators with a license, if their proposal is accepted, they will need a unified access service licence (UASL).
After receiving their entire $273.6 million payments in May, MTN Nigeria and Mafab Communications Limited received final letters of award for their 5G licenses from the Commission.
MTN launched their 5G mobile network in August, but Mafab was late and received a five-month extension from the NCC.