5G license : MTN ,Mafab win NCC 3.5 GHz Spectrum Auction, as FG Pockets $546m

. Nigeria to have widest 5G coverage in Africa–Pantami

 

 

 

Jonas Ezieke, Abuja

 

Nigerian Communications Commission (NCC) has declared MTN Nigeria and Mafab Communications winners of the two slots of the 3.5GHz spectrum auction for the Fifth Generation (5G) network licenses.

 

The bids ended at $273 million for each, according to Professor Umar Danbatta, executive vice chairman, NCC and overseer of the auction

 

This came after nearly eight hours and 11 rounds of auctions which began at $199.37 million as against the reserve price of $197.4 million.

 

MTN Nigeria, Airtel Nigeria and Mafab Nigeria Communications Ltd participated in the live auction held at Hilton Transcorp Hotel, Abuja.

 

The surprise bidder was Mafab Nigeria Communications Ltd, a recalcitrant new entrant in the telecommunications sector in Nigeria.

 

Mafab Communications, led by Alhaji Musibau Bashiru, was licensed in July 2020, as an International Data Access (IDA) by the NCC.

 

Each auction in the first six rounds lasted 20 minutes and non of the bidders backed down as the price steadily moved up using the ascending clock auction format.

 

In the second five rounds, the bidders were given 10 minutes each to put up their bids.

 

At the end of the 11 rounds which ended at 7.20 pm, the bid per slot was $275, 904,886.25.

 

Prof. Isa Pantami, minister of Communications and Digital Economy, who flagged off the auction at around 11.00 am waxed optimistically about the benefits 5G.

 

Also, Professor Adeolu Akande, chairman, board of NCC, and Professor Umar Danbatta, executive vice chairman of the NCC addressed the participants and observers on the imperative of the spectrum auction.

 

In his address, Pantami traced the journey from 2019 when the 5G technology was tested in Lagos, Abuja and some other cities in Nigeria and found to be suitable and desirable for the country.

 

He also reminded the audience that the test was also followed by an investigation on claims the technology had health dangers. He said the result of the investigation showed 5G technology

had no health hazards.

 

He expressed optimism that by 2022 Nigeria will have the largest 5G coverage in Africa.

 

He is also of the opinion that 5G, could solve, among others, some of the security challenges in the country, since the technology provides real-time services and platforms.

 

The 3.5 GHz Spectrum Auction organised by the Nigerian Communications Commission NCC in conjunction with the Federal Ministry of Communications and Digital Economy was a showpiece to industry watchers as three major telcommunications companies actively bidded for the asset.

 

The event organised at the Transcorp Hilton Hotel Abuja attracted top government functionaries and other major stakeholders in the telecoms sector of the nation’s economy.

 

The auctioning exercise an epoch making event in the annals of the NCC and the telecommunications industry was targeted at enhancing broadband penetration in voice and data communication by the major players in the industry.

 

The three telecommunications companies that actively participated in the bidding of the asset are MTN Nigeria, Airtel Nigeria and Mafab Communications Nigeria Limited all of whom are licenced operators in the industry.

 

 

The excercise which was declared open by the Minister of Communications and Digital Economy Prof.Ali Isa Pantami and hosted by the Executive Vice Chairman EVC of NCC Prof.Umar Garba Danbatta witnessed very tumulotous crowd who mostly are potential telecom investors.

 

The auctioning was conducted through ascending clock auctioning format and was done through computerized bidding.

 

Throughout the various stages of the exercise which rose from round one up to the eleventh round, all the three telecommunications companies maintained active presence at the bidding.

 

 

On the exercise, the price per lot of the two slots of the 3 5 GHz Spectrum being traded, the price rose from $197,200,000.00 in the first round to $263, 017,050.77 in the tenth.

 

 

Despite the price of the asset at each of  the stages, the three leading telecoms gaints in Nigeria maintained active presence at each stage and kept pushing to win and procure the asset to enhance their market operations and profitability.

 

At 7 10pm the main stage of the auction ended at the eleventh round at the price of $275,904,886.25 and each of the bidders was still closing in on the bid to acquire the asset.

 

At 8:15pm, the EVC announced that Mafab Communications Limited ans MTN Nigeria have won the bid after a very painstaking and transparent bidding excercise at the price $273,600,000.00

 

He added that the payment should be made into the commission on or before the deadline of 24^th  February 2022 in Nigerian currency and at the prevailing exchange rate of the Central Bank of Nigeria CBN.

 

The NCC is the major regulator of the telecommunications industry in Nigeria and the agency under the current EVC has enunciated many reforms to make the telecommunications industry contribute maximally to the nations Gross Domestic Product GDP.

 

In the same vein the Minister of Communications and Digital Economy, Prof. Isa Pantami, has assured that by 2022, Nigeria would have the largest Fifth Generation (5G) coverage in Africa.

Pantami gave the assurance at the auction of the 3.5 gigahertz (Ghz) spectrum organised by Nigerian Communications Commission (NCC) on Monday in Abuja.

The minister noted that 5G would solve some of the security challenges in the country, since the technology provides real time services and platforms.

“We have already made a number of giant strides in the development of our digital economy and the development of 5G networks will further support our efforts.

“This will harness the social and economic benefits that come along with it.

“It will serve as a catalyst for the successful implementation of our National Digital Economy Development and Strategy (NDEPS) for a digital Nigeria,” he said.

He noted that the National Frequency Management Council (NFMC) would ensure that the required spectrum for 5G standard was made available in the most timely manner.

He said that this would enable investment, innovation and competition in the development of 5G services for the benefit of consumers and businesses.

He said that the 5G trial was critically reviewed by stakeholders with a view to understanding its health and security implications.

“The review showed that that 5G is safe for deployment in Nigeria and will not compromise our security as a country.

“The World Health Organisation (WHO) and the International Telecommunications Union (ITU), organs of the United Nations, have confirmed that the deployment will not cause any adverse health effects and are safe,” Pantami said.

NAN reports that the NCC had announced that three telecoms companies were qualified as approved bidders for 5G permit after meeting all requirements for participating in the licensing process.

The three qualified bidders for the 3.5 GHz spectrum are namely: MTN Nigeria, Mafab Communications Ltd and Airtel Networks Ltd, participated in the software-based simulated auction.

They used the Ascending Clock Auction System for the mock session.

Each bidder is expected to go through a bidder room, which will begin with an opening round where all bidders are expected to participate.