Stakeholders, NCC meet on spectrum trading guideline

To further ensure adequate use of spectrum for broadband penetration in the country, the Nigerian Communications Commission (NCC) is putting finishing touches to a guideline on spectrum trading in the telecommunications industry.
NCC explained that applicants that have been granted approval to trade in spectrum will be required to pay administrative fee of 1% of the gross proceeds and 60 percent of the net proceeds of the transaction for trading of spectrum acquired through administrative process.
This was NCC’s position at a public inquiry on draft guidelines on spectrum trading, which took place at NCC conference room, yesterday.
Assistant Director at NCC, Mr. Gwa Muhammed, while speaking to newsmen emphasized the importance that the commission places on the issue of spectrum trading.
“we are hoping that we are going to have a very robust regulation in place that will chat the course for and we will be able to provide service using spectrum that other people have acquired and they are not using at the mean time.
“Instead of someone having redundant spectrum lying somewhere without using it. now what you are going to have is that anybody who have spectrum will be able to call another person who doesn’t have sufficient spectrum to come forward and use that spectrum based on the guidelines that have been provided by the commission to provide service to Nigerians.”
“it is about service provision remember we are talking about an era where we want to have broadband penetration and its going to drive broadband penetration.

NCC however warned stakeholders that, “the use it or lose it policy is still in place.
“A buyer will be allowed to use the spectrum acquired through trading to deploy any technology. It however, explained that “under the guidlines, every application will be evaluated to generally ensure that anti compesation issues would not arise. decisions will be taken on a case by case basis on consideration of all issues, including dominance.
Muhammed added that, “upon expiration of a spectrum lease/sharing agreement, a seller shall be obligated to renew the agreement subject to buyer submitting a request for renewal and meeting the terms and conditions of the agreement as filed with the commission. Any dispute between seller and buyer regarding spectrum lease/sharing agreement which cannot be resolved by the parties shall be referred to the commission.
He stressed that “a prospective applicant will be required to obtain a Trade Application Form (TAF) on payment of requisite fee and a TAF submitted to the commission will be duly evaluated and the decision of the commission will be conveyed to the applicant within 30 days of submitting a complete TAF to the commission. Provided however that the commission may extend the timeline for communicating its decision by period not exceeding 45 days.
Stakeholders at the event asked for clarity and transparency in reasons for declining spectrum licence. They also demand that the guideline be flexible such that spectrum trading is done in global best practice.”

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