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NCC to auction another spectrum licence

By on August 30, 2014

Following the successful auction of the nation’s 2.3GHz spectrum early this year, the Nigerian Communications Commission (NCC) has begun a fresh process to auction another spectrum that will further deepen competition and improve broadband penetration in the country.
NCC at a stakeholders’ forum yesterday in Lagos, informed telecoms operators and industry stakeholders of its intention to conduct another spectrum sale in the 2.6GHz band.

The commission explained that two slots of 70MHz in the 2.6GHz band are available and would be auctioned in a transparent manner to the most qualified.

Addressing stakeholders on the modalities of the auction process, the Chairman of NCC, Mr. Peter Igho, said contributions from industry stakeholders would allow the commission to conduct another transparent auction like it did in February this year with the 2.3GHz spectrum band.
“The auction could be done before the end of the year to complement NCC’s plan to license Infrastructure Companies (InfraCos) on regional bases,” Igho said.

According to him, “You are all aware that the commission has commenced the processes for the selection of infrastructure companies for Lagos and North-central geopolitical zone in line with the Open Access Model that was launched this year. In due course, qualified companies will be selected in that process to give impetus to our drive to achieve robust deployment and service provisioning for broadband services across the country.”

Other areas to be considered in line with the planned auction of the 2.6GHz band, according to Igho, would include spectrum caps, licensing options, tenures, rollout obligations and some key issues that the commission’s auction committee may deem necessary for consideration.

NCC’s Director of Spectrum Administration and Management, Mr. Austin Nwalune said deliberations from the forum would form part of NCC’s decision for the spectrum auction.

“The 2.6GHz spectrum is a frequency band, which is in the migration plan for mobile service delivery that will be used for 4G service rollout. The service will boost faster broadband delivery, which means that it will allow for speedy download at higher frequency,” Nwanule said.

“Our target for the planned 2.6GHz band is to have abundant broadband delivered to subscribers at 1.5MB/s, which is what the National Broadband Plan stated,” Nwanule added.

President of the Association of Telecommunications Companies of Nigeria (ATCON), Mr. Lanre Ajayi, said the planned sale of 2.6GHz spectrum would enhance last-mile infrastructure connectivity that would complement faster delivery of broadband services to homes and offices.

Although there were arguments on whether the spectrum should be issued on a national or regional basis, Ajayi said licensing it nationally would not encourage local participation, stressing that it should be done geographically.
“If it is auctioned on regional basis, the smaller operators will have opportunity to operate at the regions. For example, a Kaduna based operator should be able to get spectrum for Kaduna and offer services there,” Ajayi said.

Also, the President of Nigeria Internet Group (NIG), Mr, Bayo Banjo, said most developed countries that have auctioned spectrum, put in place measures that will encourage local players, stressing that NCC should follow the steps of the oil and gas industry that has helped local operators to perform at the regional level, stressing that licenses of such magnitude should be offered on regional basis.

Having a contrary view, the Director, Regulatory Affairs Department of Globacom, Mr. Aremu Olajide, said NCC should consult widely to know which model is best for the planned auction. He said the issue was not about regional licensing but about understanding what such spectrum would do for Nigeria as a country. He was of the  view that the spectrum should be offered to those who understand the business and not speculators.

Regulatory Affairs Manager of MTN Nigeria, Oyeronke Oyewale, stressed that getting a particular spectrum should be based on the operator’s business plan. “Operators need to decide if the licence is within their business plan and prospect for the future, before venturing to bid for the auction,” Oyewale said.

 

[This Day]