Govt hikes auction fee for broadband spectrum by N374.6m


THE Federal Government has raised the fixed auction fee for the 2.3GHz broadband spectrum by N374.6 million.
   Consequently, the eventual bid winner will now be required to pay N3.97 billion, against the earlier price of N3.6 billion.
   The spectrum is one unpaired block of 30 MHz, adjoining a 10MHz guard band with the adjacent 2.4 GHz band.
    According to Technology Times, President Goodluck Jonathan approved that an extra N374.6 million-licence fee be paid by the winner in the upcoming 2.3GHz spectrum auction that will usher in the sole provider of wholesale broadband services in Nigeria.
    Already, about 16 firms seem to have indicated interest in the licence. These include the quartet of GSM operators; submarine cable firm, MainOne; a Code Division Multiple Operator, Visafone Communications owned by Jim Ovia.
     In addition, Technology Times disclosed that firms linked with big businessmen like Aliko Dangote, President of Dangote Group; Smile Communications jointly-owned by Irene Charnley, ex-Director of MTN Group and Arab investors are also in the race for the license.
    According to NCC, a successful bidder without a Unified Access Service License (UASL) license will be issued a Wireless Wholesale Access Service Licensee (WWASL) license upon payment of the specified fees, adding that it will also not allow the eventual winner to forge an alliance with an existing unified access licensee, a development that will mean not shelling out the N374.6m licence fee.
    A top official of NCC, who spoke to The Guardian yesterday, on the condition of anonymity, said the process is gathering momentum, “but I wouldn’t want to say anything that will jeopadise the process. But all is well. The process is going on fine and it will be transparent as ever.”   
   The telecoms industry regulator had pegged a N3.6 billion ($23m) 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.
 According to NCC’s pre-auction clarification note, the winner of the spectrum will also be required to obtain a Unified Access Service License (UASL) which the telecoms regulator has valued at N374.6 million, as a precondition to becoming the wholesale broadband service provider.
     The regulator informed that the joint bouquet of the N374.6 million UASL and the WWASL, which will be sold in the imminent Abuja bids, would speed up broadband development for the country.
     However, if the winner currently has a UASL, it will be able to save the extra N374.6 million. If it does not, it will not be allowed to piggyback on any existing holder of the same licence, according to the telecoms regulator, which has thrown the bids open to existing telecoms licensees and new entrant companies that are duly registered under Nigerian laws
   “A successful bidder without a UASL license will be issued a WWASL license upon payment of the specified fees. This underscores that NCC will also not allow the eventual winner to forge an alliance with an existing unified access licensee, a development that will mean not shelling out the N374.6m licence fee”, NCC stated.
     According to the commission: “the proposed licensing of 2.3 GHz spectrum has been influenced by the need to provide Retail Service Providers (ISPs and others users) with the requisite wholesale wireless access and bandwidth to provide service to their subscribers in consonance with the National Broadband Plan of 2013.”
     Besides, it stressed that already licensed operators participating in the process must fulfill all existing obligations to the commission including payments of Annual Operational Levy, Spectrum and National Numbering Plan fees prior to prequalifi cation.
    Unified Access licensees include Starcomms Limited, Danjay Telecomms Ltd, Prest Cable & Satellite TV Systems Limited, MTN Nigeria Communications Ltd and Multi–Links Telecommunications Limited. Others include Gicell Wireless Limited; Intercellular Nigeria Plc, Celtel Nigeria Limited, Siotel Nigeria Limited and Gamjitel Limited.
   The list also includes Emerging Markets Telecommunication Services Ltd, Visafone Communications Limited, Reliance Telecommunications Limited, Alheri Engineering Co. Ltd., Smile Communications Nigeria Limited and Megatech Engineering Limited.
    NCC also informed 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”, NCC stated.

Source Nigeria Guardian News