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Nigeria’s NCC alters 2.3GHz auction conditions

Nigeria , 21 Jan 2014

Nigeria’s NCC alters 2.3GHz auction conditions

Conditions for winning a 2.3GHz spectrum auction in Nigeria have been modified by the Nigerian Communications Commission (NCC).

In an update on the requirements, the NCC said it plans to allow the eventual winner to forge an alliance with an existing Unified Access Service License (UASL) owner.

The NCC said that a successful bidder without a UASL would be issued a Wireless Wholesale Access Service Licensee (WWASL) licence upon payment of fees.

A top NCC official has said the commission charges N374.6 million for a UASL license.

With the update, a successful bidder without the UASL license could have to pay this additional charge along with the N3.6 billion (US$23 million) auction price.

The NCC has pegged a N3.6 billion reserve price for the single spectrum being offered for sale as part of a ‘Presidential Broadband Plan’ to promote diffusion of high-speed internet services across the country.

The new conditions have now thrown the bids open to existing telecoms licensees and entrant companies that are duly registered under local laws.

A total of 16 companies in the country currently have the unified access licences including three of the big four GSM networks as well as companies linked with big businessmen such as Aliko Dangote, president of Dangote Group.

NCC also said that with the emergence of the wholesale broadband provider, undersea cable companies that currently provide both wholesale and retail broadband services in the market will be made to adhere to licence restrictions.

“The submarine cable infrastructure and landing station licensees will continue to provide their services based on their license conditions.

"The WWASL licensee may be a subscriber of the submarine cable infrastructure and landing station licensees for bulk international bandwidth. They are playing in different segments of the market,” the regulator says.

The regulator provided two accounts, one in Guaranty Trust Bank PLC and Zenith Bank PLC, where bidders hoping to pay in Naira can deposit their funds.

“Companies that wish to pay in Naira should pay the naira equivalent of the designated amount at the prevailing exchange rate for the date of payment,” the NCC stated.

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