Nigerian Communications Commission (NCC) has awarded provisional 2x30MHz in the 2.6gigahertz (GHz) frequency licence to MTN Nigeria Communications Limited (MTN), as the sole approved bidder.
Daily Times recalls that NCC had on March 11, 2016, published an information Memorandum (IM) expressing its intention to auction 2x70MHz in the 2.6GHz frequency band on behalf of the Federal Government.
The Commission had on May 20, 2016, stated that since there was only “one qualified bidder”, who wanted six slots out of the 14 available for sale on the 2.6GHz spectrum, there was no need to conduct an auction again.
The commission had set a reserve price of $16m (N3.2bn) for a slot of the frequency spectrum. One lot or slot of the frequency is made up of two portions of 5MHz.
Now that MTN has emerged as the qualified bidder, it will be required to pay a total $96m (N19.2bn) for the licence – a cumulative 30MHz in the 2.6GHz Frequency.
However, Mr. Tony Ojobo, director, Public Affairs at NCC in a press statement of Tuesday, June 21, 2016, noted that, “At the close of submission of applications and the subsequent evaluation thereof, MTN Nigeria Communications Limited (MTN) emerged the sole approved bidder with an expressed interest to bid for 2x30MHz of the available frequency.
“Consequence upon the above, and in accordance with clause 6.5.3 of the IM which mandates the Commission to provisionally award licence(s) to the approved bidder(s) if the aggregate demand is less than or equal to the number of Lots on offer, the Commission is pleased to announce that MTN has been provisionally awarded 2x30MHz frequency in the 2.6GHz Band.”
He added that MTN has 21 days from the date of the provisional award which was on June 13, 2016, to pay the reserve price less the intention-to-bid deposit (IBD) it has already paid.
In the event MTN fails to pay the fee within the specified period, the publication reads, “MTN will lose the award and also forfeit the IBD”.