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Licensing of 700MHz will bring dividends to Nigerians – NBC insists

By BusinessNews Staff on September 16, 2015

Contrary to allegations that the licensing of the country’s 700MHz spectrum to MTN by the National Broadcasting Commission (NBC) was illegal and that the deal must have denied other telecoms operators the legitimate right to bid for the spectrum, the commission has said the licensing will afford Nigerians the best option for the provision of high quality converged broadcasting and telecommunications services, while enabling the funding for a successful Digital Switch Over (DSO), which would free up more spectrum for sale.

The Director General of NBC, Mr. Emeka Mba, who gave the clarification, said without the licensing if the spectrum to MTN, there would have been no other option.

Reacting to the allegation that NBC sold the spectrum to MTN for N34 billion without the knowledge of the Nigerian Communications Commission (NCC), Mba said: “The NBC and the NCC regulate separate and clearly demarcated sections of the spectrum. Each administers its own bundle without interference from the other. The basis for prior notification of NCC ahead of the licensing of MTN does not arise at all, constitutionally, legally and by regulatory practice. The licence issued was for a converged digital broadcasting licence based on the existing National Frequency Management Commission (NFMC) protocol for broadcast.”

He insisted that the 700MHz was still a broadcast spectrum and does not belong to the NCC, since it remains within the broadcasting frequency spectrum.

“Several stations are currently broadcasting on that spectrum in several cities across Nigeria. Cable and UHF stations are on this frequency. The NCC is fully aware of this incontrovertible fact. The NBC enjoys a good working relationship with the NCC and each of us respects each other’s boundaries,” Mba said, adding that it is only after the successful DSO that the 700MHz and portions of the 800MHz will be transferred to NFMC.

Mba said: “It is important to state that the NBC does not sell spectrum but licensces organisations based on their applications to broadcast using available broadcast spectrum, and other forms, such as IPTV. “ He therefore said the allegation that NBC sold spectrum is misleading, and that NBC’s approvals were based on applications after assessment of the need and impact on the audiences and the market.

Although it was alleged that NBC had no right to sell telecoms spectrum that exclusively belongs to NCC, Mba clarified that NBC would do no such thing, since it does not possess any spectrum that belongs to NCC. “So if you don’t even have something, how do you sale it? We are law abiding and act professionally.

The allegation question got it all wrong. It is within the sole authority of broadcasting sector and therefore under NB,” Mba said.
On the allegation that NBC did not seek the permission of the National Frequency Management Council, and that the sale did not follow due process, Mba said: “First of all, the NBC is not required by law or practice to refer back to the NFMC each time we issue a broadcast licence. These frequencies have since been allocated. The segment for broadcasting had been ceded to the NBC by the NFMC since, as has been with the Telecom frequencies with the NCC. The NBC does not require approval or permission from NFMC for the licensing of the spectrum.”

The NBC boss further explained that the issue of paucity of funds for DSO, which caused the country to miss the switch over deadline, became a major issue at the NFMC as well,; the matter was tabled and efforts were being made at the NFMC level to find funding for DSO.

Mba further explained that the former Minister of Communications Technology, Dr. Omobola Johnson, who serves as the Chairman of NFMC, did not only raised this issue for deliberation, but also approved that NBC should find ways of generating funding for DSO on its own.

“It is very important to emphasis that this was not a “sale” as alleged but the licensing of an operator to utilise the frequency to offer converged DTT services in the broadcasting industry. As to whether or not we followed due process, again the allegation is untrue. The Commission’s licensing process is remarkably different from the NCC since our approvals are based on applications and the easement of the submitted application proposals,” Mba said. He adding that in this case, the NBC followed its own laid down process and international best practice of broadcast licensing procedures proper and for that purpose, the NBC sought and received all necessary approvals from all relevant authorities to undertake this important assignment necessary to raise fund for the successful DSO of Nigeria which would free more frequency spectrum.

The NBC DG insisted that without the successful transition of analogue to digital terrestrial television broadcasting, there cannot even talk of digital dividend spectrum, which was already being cannibalised by the NCC in several piecemeal allocations without raising the necessary funds for the DSO.

Mba made it clear that NBC did not ‘sell’ the 700MHz belt, but merely being put to use through a proper process in which all concerned were involved.

Senior Partner, Integrated Network Management Consultants, Mr. Ojie Panama, had raised the concern that NBC secretly sold the country’s 700MHz spectrum, which is a national frequency that is meant for telecommunications service offering, to MTN without the knowledge of the NCC), the telecommunications industry regulator that is empowered to sell such spectrum through a transparent auction process.
Panama insisted that the spectrum in question should be returned to the rightful custodian, the NCC, and called on government to carry out thorough investigation on the matter and punish any culprit or any person found to have aided this infraction.

[ThisDay]

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