• NCC reserve price of $ 197.4 million for 5G higher than market reality – MTN
According to the Global System for Mobile Communications Association, $ 500 million and 6,000 base stations are needed for 5G deployment in Nigeria’s top 10 cities.
The telecom industry umbrella organization with more than 750 mobile operators as members revealed this in its comment to the Nigeria Communications Commission on its “Draft Information Memorandum for Spectrum Auction 3 , 5 Ghz ”.
The association said the benchmark of $ 197.4 million for spectrum auctions was high and could affect the actual deployment of the 5G network.
According to the GSMA, the NCC first disclosed it in its “Nigerian National Broadband Plan 2020-2025”.
The association added that the reserve price for 5G spectrum ($ 197.4 million) did not reflect what broadband hopes to achieve.
The GSMA said, “The reserve price does not reflect the principles of the Nigerian National Broadband Plan 2020-2025 (NNBP).
“The NNBP points out that one of the main categories of investment to achieve the plan may include the deployment of 5G for the first 10 cities, with around 6,000 base stations to be deployed at a cost of up to $ 500 million.
“This cost will be borne by the service providers who will also have to invest significantly in the acquisition of the spectrum. The plan further notes that one of the incentives required to support the achievement of this goal is to provide incentives to the public sector in the pricing and allocation of spectrum. ”
According to GMA, high spectrum prices will lead to reduced coverage, download speeds and mobile broadband adoption.
The association added that the market should be allowed to determine spectrum allocations, as regulators could unwittingly make decisions about spectrum auctions that distort fair competition in the market by reserving spectrum and limiting the number of spectrum auctions. spectrum operators that operators can access.
The NCC, however, said it compared its reserve price after taking into account other jurisdictions in addition to other variables that may not have been taken into account by other studies before d ‘arrive at its reserve price that it deems reasonable.
The NCC added that its reserve price remains at $ 197.4 million. According to MTN, in a study conducted by Coleago Consulting Limited, the market value of 100 MHz of 3.5 GHz spectrum is $ 83.7 million. According to MTN, the NCC reserve price is 136 percent higher than the estimated market value, and it does not correspond to a substantially discounted market value of the spectrum.
NCC executive vice chairman Umar Danbatta said the commission is expected to make 632.39 billion naira from the sale of 5G spectrum to telecommunications companies, among other sources of revenue in 2022.
The boss of the NCC said this during his appearance before the National Assembly’s joint communications committee to defend the NCC’s 2022 budget proposal.
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