Professor Umar Danbatta, Nigeria’s telecoms regulatory chief, this evening confirmed that MTN Communications Nigeria Plc and Mafab Communications Limited, winners in last year’s 5G spectrum auctions, have made full payments for their licences.
The Executive Vice Chairman of the Nigerian Communications Commission (NCC) two “provisional winners” of the 3.5 Gigahertz (GHz) spectrum licence for 5G deployment in Nigeria made their full payment of $273.6 million each for the licence to the telecoms regulator.
Danbatta officially confirmed the payment status today, February 24, 2022, just as the deadline set for the two winners of the spectrum auction elapsed, also confirming the Technology Times story about the payment
NCC on How Winners Paid for 5G Spectrum Licences
“As part of the auction process emplaced by the Commission in the Information Memorandum (IM)”, the NCC chief says in the statement, “three companies, namely MTN Nigeria, Mafab Communications Ltd and Airtel Networks Ltd submitted bids with an initial bid deposit (IBD) of $19.74 million, representing 10% of the Reserve Price of the 3.5GHz Spectrum by the close of the Bid submission date of November 29, 2021.”
Following the successful auction on December 13, 2021 and the emergence of MTN and Mafab as winners, they were required to pay the balance of the bid amount of $253.86 million on or before February 24, 2022, according to the auction rules.
However, Danbatta says that “aside the $273.6 million payment, MTN paid additional $15.9 million, being the bidding sum it offered at the assignment state of the spectrum auction, making it clinch its preferred Lot 1 (3500-3600 Megahertz-MHz) in the 3.5Ghz spectrum; while, Mafab Communications, which bided lower at the assignment stage, consequentially settled with Lot 2 (3700-3800Mhz) at no extra cost.”
“I wish to officially announce that NCC has received and confirmed payments from MTN and Mafab for their acquisition of 1 slot of 100Mhz each in the 3.5Ghz spectrum auction, which was successfully conducted by the Commission on December 13, 2021. They both met the deadline of February 24, 2022 as set by the Commission,” the NCC EVC says confirming the payments by the two licensees.
“Arising from this and on behalf of the Honourable Minister of Communications and Digital Economy, the Board and Management of the NCC,”, Danbatta says, “I wish to congratulate the MTN and Mafab for this feat, as we look forward to accomplishing other deployment timelines in the 5G deployment roadmap, as articulated in the National Policy on 5G Networks for Nigeria’s Digital Economy.”
For meeting the payment deadline, Danbatta commends the two companies for their commitment to 5G deployment drive through their private investments, which he cites as “a demonstration of the licensees’ belief in the sound regulatory environment in the Nigerian telecommunications sector.”
Danbatta also expressed appreciation to the Federal Government for its support and commitment to the deployment of 5G technology in Nigeria which, he says, will bring substantial network improvements, including higher connection speed, mobility, and capacity, as well as low-latency capabilities to communications services in Nigeria.
Tracing the journey that preceded today’s confirmation of payments by the two winners, the NCC chief says the Commission published a Public Notice on its decision to award two lots of 100MHz Time Division Duplex (TDD) available in the 3.5 GHz band through an auction process, to support the delivery of ubiquitous broadband services for the deployment of 5G technology in Nigeria.
Subsequently, an Information Memorandum (IM) was issued on November 10, 2021, in which Bid Applications for the available spectrum lots were invited. By the deadline for receipt of applications on November 29, 2021, the Commission received applications from three licensed telecommunications companies, namely: Airtel Networks Limited, Mafab Communications Limited, and MTN Communications Nigeria Plc.
The Auction was held successfully on Monday, December 13, 2021, at the Transcorp Hilton Hotel, Abuja with the three bidders competing for the available two lots in which the Commission adopted the Ascending Clock Auction format that ended after Round 11, and proceeded to the Assignment Stage.
In the auction, MTN and Mafab emerged as provisional licence winners and arising from this, the winning bid price for the auction was put at $273.6 million for each lot of 100 MHz TDD. The Provisional licence winners were then directed to pay the winning bid price less the intention-to-bid deposit by February 24, 2022.
According to the NCC chief, “industry stakeholders and observers have commended the Commission for the auction process, described as efficient, fair, well-organised and transparent; as well as designed to deliver the ideal outcome which saw the strongest bidders emerge as winners, raising a substantial amount for the Federal Government and setting the stage for the next phase in Nigeria’s 5G roadmap.”