5G spectrum auction: NCC pegs reserved bid price at N75bn




The Nigerian Communications Commission (NCC) has officially declared that the auction of the 3.5 Gigahertz (3.5 GHz) spectrum for the deployment of Fifth Generation (5G) technology in Nigeria, will take place on December 13, 2021.

Based on the Information Memorandum (IM) presented by the Commission at a stakeholder engagement forum organised on 5G spectrum in Lagos recently, NCC is adopting Ascending Clock Auction format, which is software-based while a mock auction has been slated for December 10, 2021, as a precursor to the actual auction on December 13, 2021.

According to a statement by the Director Public Affairs, Dr Ikechukwu Adinde

said that IM provides information, conditions, obligations, financial implication, timelines and other necessary details on the planned 3.5Ghz spectrum auction.

“The IM also explains the rollout obligations of the would-be eventual winners of the spectrum licence auction, whose reserved price has been pegged at $197.4 million (N75 billion). 

The IM also states that only licensees, who make down payment of 10 per cent of the reserved bid price and with 100 percent regulatory compliance would be allowed to participate in the auction while licensees with outstanding debts that have secured NCC’s approval for a payment plan will be allowed to participate in the auction.

According to the IM, the auction comes with a 10-year spectrum licence and a minimum requirement of an operational Universal Access Service Licence (UASL). However, new entrants or licensees without a UASL will be required to obtain a UASL operational license to be qualified for the 5G licence.”

The statement adds that, “The eventual licensees will have a rollout obligation plan spanning a period of 10 years, beginning from the date of award of the licence. Between the first and second year of the licence, the operators are expected to rollout service in, at least, one state in each geo-political zone. 

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