Mobile Telephone Network (MTN) and Mafab Communications Ltd emerged as the winner of the Nigerian Communications Commission’s (NCC’s) 3.5 gigahertz (Ghz) Fifth Generation (5G) Technology spectrum auction, both companies to pay Nigeria $547.2million.
The auction, which took place on Monday, December 13, at the Transcorp Hilton Hotel, Abuja, was in two stages, the sales stage and the assignment stage. The sales stage was done using the ascending clock auction system.
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Three qualified bidders for the 3.5 GHz spectrum, namely: MTN Nigeria, Mafab Communications Ltd, and Airtel Networks Ltd, participated in the software-based simulated auction exercise.
The reserve price per lot was initially set at $197,400,00 but was raised repeatedly by the auction manager, reaching $273,600,000 at round 11 then Airtel dropping off leaving MTN and Mafab Communications. The bidding process then moved to the assignment stage.
The assignment stage is an auction mechanism to resolve any such conflicts and where the winning bidder (s) will specify the date for the payment of the upfront fee.
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At the assignment stage, MTN offered $15,900,00 and was assigned lot one which according to The Cable is 3500-3600mhz, while Mafab offered $11,120,000 and awarded slot two at no extra cost and was awarded the second slot which is 3700-3800mhz.
The two winners are expected to pay by February 24, 2022, at the prevailing exchange rate.
The auction ended with Nigeria raking in a total of $547.2 million at $273.6 million per lot of 100 MHz TDD.
The Executive-Chairman, NCC, Prof. Umar Danbatta, who announced the results, reiterated that the commission followed the due process for the bidding.
Danbatta said that the winners were expected to pay on Feb. 24, 2022, with the prevailing Central Bank of Nigeria (CBN) exchange rate.
He recalled that the allocations at the international level were granted approval for the 5G trial in Nigeria in November 2019.
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“Arising from the above, the Winning Bid Price for the Auction is $273,600,000 for each lot of 100 MHz TDD.
He congratulated the winners and thanked the government for its support and commitment to the deployment of 5G technology in Nigeria.
He said this would bring sustainable network improvements, higher connection speed, mobility and capacity as well as low latency capacities to Communications services in Nigeria.
“The Provisional Licence Winners are expected to pay the Winning Bid Price less the Intention-to-Bid Deposit, by Feb. 24, 2022.
“We are happy to state that the Auction process was efficient, fair, well-organised and transparent, and was designed to deliver the ideal outcome.
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“Accordingly, the strongest bidders have emerged provisional winners, raising a substantial amount for the Federal Government.
“Today’s auction represents a culmination of all the efforts at the international and national levels that have prepared Nigeria for this momentous leap forward.
“The auction is based on the powers bestowed on the Commission by Section 121 of the Nigerian Communications Act 2003 as well as the Licensing Regulations 2019,” he said.
Successful bidders are anticipated to choose the 3.5 GHz frequency band at the end of the Main Auction
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