NCC rakes in about USD 563 million
Emmanuel Ukudolo l Monday, December 13, 2021
ABUJA, Nigeria – MTN Nigeria and Mafab Communications Ltd today emerged winners of the 3.5Ghz Spectrum auction conducted publicly and in a transparent manner by the Nigerian Communications Commission, NCC for the deployment of 5G technology in Nigeria.
The auction which was conducted at the Transcorp Hilton Hotel, Abuja and virtually saw the third bidder, Airtel Nigeria, crashing out along the way, leaving MTN and Mafab Communication to grab the two slots available. The NCC however pocketed about USD563 million from the auction, which was witnessed by major stakeholders in the telecommunications sector and many others who witnessed the auction via a virtual link shared by the NCC on its website.
While declaring the bid open, Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami said the successful bidders(MTN, Airtel and Mafab Communications Ltd) and all other stakeholders have played important role and still have an important role to play in this journey towards using 5G to support national economic development agenda.
“ I have directed the NCC to monitor the process for the deployment of 5G networks in the country and provide comprehensive regular updates to my office”, he said, adding that the 5G networks offer significant advantages over current technologies.
“Some of its advantages Include much lower latency, higher bandwidth, greater a device density longer battery life for nodes and greater network flexibility”.
He recalled that the Federal Executive Council (FEC) approved a National 5G Policy for Nigeria’s Digital Economy on September 8, 2021 and that the approval process followed a very robust debate at the Council. The National Policy, he maintained contains all the necessary information guiding the processes and procedures for the deployment of 5G technology in Nigeria.
According to him, the National Policy noted the key role of the National Frequency Management Council (NFMC) in the allocation of spectrum for the deployment of 5G networks in Nigeria.
The NFMC, he said is also to “ensure that the required spectrum for 5G standard is made available in the most appropriate and timely manner to enable investments, innovation, and competition in the deployment of 5G services for the benefit of consumers and businesses.
The Professor noted that the National Policy has been developed to achieve many other goals, a few amongst which are: to ensure effective deployment of 5G to cover major urban areas by 2025; to ensure security of 5G ecosystem and the protection of data; ensure that international best practices and globally accepted standards and specifications are entrenched in Nigeria’s 5G ecosystem; and ensure that the required infrastructure needed for successful deployment of 5G networks such as data centres, power, etc, are catered for in deployment strategies of 5G networks.
The minister said report of the 1st set of 5G-trials was critically reviewed and studied by stakeholders, with a view to understanding the health and security implications of deploying 5G in Nigeria. The review, he explained showed that 5G is safe for deployment in Nigeria and would not compromise our security as a country.
“This formed the basis for the development and eventual approval of the National Policy. Furthermore, leading international organizations such as the World Health Organisation (WHO) and the International Telecommunication Union (ITU), organs of the United Nations, have so far confirmed that the deployment of 5G networks do not cause any adverse health effects and are safe”, he asserted.
In his own address, Chairman, Board of Commissioners, NCC, Professor Adeolu Akande said the auction process seeks to assign two (2) slots of Spectrum to operators based on the highest valuation of the spectrum on offer and through a competitive process with three (3) unique participants.
“It is worth noting that Spectrum auctions ensure the assignment of Spectrum through a transparent and competitive process which in most cases brings to bear on the true value of Spectrum. The main objective of this auction is not just the offer of a premium frequency, it also aims to support the deployment of 5G in Nigeria, which has been identified as a critical factor for the growth of the national digital economy”, the chairman said, adding that the full socio- economic benefits of 5G technology is largely dependent on access to a variety of spectrum resources.
“Consequently, Spectrum plays a strategic role in meeting the insatiable demand for advanced mobile data services as well as a new wave of wireless broadband use cases such as remote object manipulation, industrial automation, virtual and augmented reality as well as next-generation connectivity for vehicles”, he said, noting that the impact of 5G technology on the economy of Nations is unprecedented.
Alluding to the year 2020 global edition of the GSMA’s flagship Mobile Economy’ Report, he said that 5G is forecast to contribute $2.2 trillion to the global economy by 2034.
“These impactful contributions will drive key industries such as manufacturing, utilities, professional and financial services. In fact several other fringe sectors will benefit immensely from the new technology. The importance of 5G technology to economy of Nations cannot be overemphasized. It is therefore with a sense of fulfillment that we acknowledge the giant leap forward that today’s auction represents. It is indeed a memorable milestone that Nigeria is set to auction Spectrum in the 3.5GHz for the deployment of 5G at this material time”, he said.
He commended the Minister of Communications and Digital Economy, Professor Isa Ali Ibrahim Pantami, for his unflinching support, the Board of Commissioners, Management and staff of the Nigerian Communications Commission for putting the auction together.
“I will also like to thank the bidders for believing in the Nigerian Communications Sector by their willingness to invest millions of dollars in the Sector for the provision of 5G services. In NCC, we are committed to transparency and openness, which this auction represents. Therefore, we assure you of the openness and transparency of this process”, he assured the qualified bidders.
In his remarks, Executive Vice Chairman and Chief Executive Officer of the NCC, Professor Umar Garba Danbatta recalled all the international engagements, particularly the World Radiocommunications Conference (WRC -19), where hamonized Frequency Spectrum bands were allocated for the deployment of 5G technology.
“Further to these allocations at the international level, approval was granted for 5G trial in Nigeria in November, 2019 and following the favourable outcome, the approval of Nigeria 5G Deployment Policy was equally granted by the Federal Government on September 8, 2021.
“Hence today’s auction represents a culmination off all the efforts at the international and national levels that have prepared Nigeria for this momentous leap forward.
“Therefore, in line with the 5G Deployment Policy and global best practices, the Commission has set in motion the process for the auction and will be offering two (2) lots in the 3.5GHz band with three (3) companies competing to acquire a licence for the available lots. The auction is based on the powers bestowed on the Commission by Section 121 of the Nigerian Communications Act 2003 as well as the Licensing Regulations 2019”, Danbatta said.
