5G technology: No review of waiting time for deployment – NCC declares

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The Nigerian Communications Commission (NCC) is not reviewing the waiting time for the rollout of Fifth Generation (5G) technology in the country for now.

Its Executive Vice Chairman (EVC) Prof. Umar Danbatta, who spoke on the sidelines of the breakfast interactive session with Nigeria’s digital innovation ecosystem organised by the Minister of Communication and Digital Economy, Prof Isa Pantami,  said three more 3.5 gigahertz (GHz) spectrum licences are still available for auctioning for the deployment of the technology in the country.

He said the deployment of the technology would follow the provisions of the information memorandum (IM) drawn preparatory to the auctioning of the two slots won by MTN Nigeria and Mafab Communication Limited last year.

Danbatta, however, added that there was also a provision that the waiting period could be reviewed, adding that such a review wasn’t being contemplated by the NCC now.

He said: “I’m not saying the review is in the process as we talk. Not yet because we want to ensure that these two assigned licences have started operations and are okay.

Danbatta, who did not foreclose the possibility of putting on sale the remaining three slots, said the winners of the two slots auctioned last year will be given opportunity and time to work their rollout strategies.

“Of course, we will give them time to see what plans they have because they need to start implementing their plan for expansion of infrastructure that will support these additional services.

“Everything is on the table, meaning we have so far auctioned two slots.

“We have three more to go and nothing stops the NCC from assigning the remaining slots.”

He, however, said NCC was delaying to roll out the remaining slots “until after the two years specified or the government may say, look, cut down the years from two years to maybe one year”.

Danbatta also noted that the government could provide additional incentives to the two licensees.

“This is so that together, we can be able to agree that there is a need for a reduction in the waiting time for a licence,” he said.

It would be recalled that MTN Nigeria and Mafab Communications had won the bidding and were given up till today to pay $273,600,000 each.

MTN Nigeria has since paid the balance of $253.86 million to complete the $273.6 million licence fee to the Federal Government before the deadline.

MTN and Mafab Communications were allocated slots for the 3.5 gigahertz (GHz) spectrum dedicated to the deployment of the technology after emerging winners conducted by Nigerian Communications Commission (NCC) in Abuja last year after 11 rounds of bidding that lasted eight hours.

According to the IM for the spectrum auction, the Commission had set $197.4million as reserve price for each slot of the spectrum. Bidders were required to pay 10 per cent of the bid price of $19.74million.

The Federal Government last week officially handed over the 5G spectrum to the NCC in Abuja.

“Two telecommunication companies won the bid for the 5G spectrum licences in December and were given two months within which to pay up.

“So far, MTN has paid $273,600,000 while Mafab Communication has up to the Feb. 24 to pay. There is still time and we are optimistic,” he said.

According to the EVC, there is a provision in the Information Memorandum that says “we need to give our preferred bidders up to two years to operate”.