5G: Airtel emerges lone bidder for 3.5GHz spectrum

 5G: Airtel emerges lone bidder for 3.5GHz spectrum
By Ibrahim Adeleke
Having fulfilled the requirements for the 3.5GHz Spectrum Auction in the 5G network as stipulated in the Information Memorandum (IM), Airtel Network Limited (Airtel) has emerged the sole final bidder.
The Nigerian Communications Commission (NCC) announced yesterday that by the close of business on Monday, December 5, 2022, only two companies expressed interest in the auction of the 3.5GHz Spectrum band including Airtel Networks Limited (Airtel) and Standard Network & Connections Limited (Standard Network).
However, only Airtel paid the Intention to Bid Deposit (IBD) as stipulated in the Information Memorandum (IM) whereas, Standard Network sent an email appeal for the deadline to be extended by twelve (12) working days which was not acceptable in view of the auction timetable.
Having met all the provision in the IM, Airtel has, therefore, emerged as the sole Bidder.
Consequently, the Commission, in a statement yesterday, said there would be no further bidding and that it will proceed to the Assignment Stage in line with the published Information Memorandum guiding the licensing process.
The Commission had earlier announced that it would auction two additional slots in the 3.5 Gigahertz (GHz) spectrum band for the deployment 5G network in the country after it had successfully auctioned the first two slot to MTN and Mafab Communication Limited.
It had earlier scheduled the final auction for December 19, 2022.
The Agency set the reserve price at $547.2 million, translating to $273.60 million for each licence.
It added that applicants for the spectrum do not have to be licensed network operators in the country but will need a unified access service licence (UASL) if their bid is successful.
According to NCC, the offering includes the remaining lots of 2 x 100 megahertz (MHz) in the 3.5 GHz spectrum band to support 5G deployment in Nigeria.
NCC, last December, offered a 3.5GHz spectrum to MTN Nigeria Communications Plc and Mafab Communication to support their 5G rollout.
Since NCC awarded the 5G spectrum, MTN has launched its 5G network in selected locations while Mafab is yet to roll out its 5G network.
The spectrum reserve price (RP) is the minimum price for one slot of 100MHz TDD for a 10-year licence tenure fixed at $273,600,000.00 or its equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) rates at the time of the auction, according to the memorandum.
In February 2022, MTN Nigeria and Mafab Communications Limited made their full payment of $273.6 million each for a 5G spectrum licence after emerging winners of the 3. 5 GHz spectrum auction.
While MTN has rolled out the 5G mobile network, Mafab suspended roll-out till December this year and got the approval of NCC for a five-month rollout extension, which ends December 31, 2022.
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