History was made today in the heart of the Federal Capital Territory (FCT), Abuja as the Nigerian Communications Commission (NCC) successfully auctioned the 3.5GHz spectrum band for the roll out of 5G network technology across the country.
TheNewsGuru.com (TNG) reports with the successful auction of the 3.5GHz spectrum band by the NCC, Nigeria has joined the United States, South Korea, China, South Africa and an exclusive league of other countries providing 5G services across the globe.
As Nigeria eyes to roll out 5G networks across the country from 2022, two telecom companies; namely, MTN Nigeria and Mafab Communications Ltd won the auction of the 3.5GHz spectrum band.
TNG reports Airtel Networks Ltd was the third telecom firm that joined MTN and Mafab in submission of the bid and made payment of the ten percent fee of $20 million for the two lots in the 3.5GHz spectrum band released by the NCC.
Reserve price per lot was pegged at $197,400,000 at the start of the auction. At the end of round one of the bid exercise, the price per lot climbed to $199,374,000. At the end of round 2, the price climbed to $201,367,740 and round 3 to $204,388,256.
At round 4 the price per lot stood at $209,497,962, round 5 at $215,782,901, round 6 at $224,414,217, round 7 at $231,146,643, round 8 at $240,392,509, round 9 at $251,210,172, round 10 ar $263,017,050 and round 11 at $275,904,886.
TNG reports all three bidders remained in the auction process till round 11 until Airtel fell off the bid process. The 3.5GHz spectrum band auction by the NCC was won at $273,600,000, with provisional licensees expected to make payment of the amount by 24th of February 2022.
Meanwhile MTN made the highest bid of $15,900,000 at the assignment stage of the auction exercise to be assigned the preferred lot of lot one, while Mafab was assigned lot 2 at no extra cost.
However, there is hope for the loser to try again, as the “Commission will maintain the Auction Price of the 3.5GHz auction as a minimum to be applied when the remaining slots are available and cleared of encumbrances”.
TNG reports the process of clearing these encumbrances is estimated to take a minimum of twenty four months, according to the NCC.
Speaking at the auction, Executive Vice Chairman and Chief Executive Officer (CEO) of the NCC, Prof Umar Danbatta said the auction was a culmination off efforts at the international and national levels that have prepared Nigeria for the momentous leap forward.
“Today’s auction is momentous in many regards and will usher Nigeria into the exclusive league of countries providing 5G service across the globe. I am particularly pleased to be associated with this auction process because when His Excellency President Muhammadu Buhari, GCFR, brought us on board in the year 2015, we took a decision to reposition the Commission on a path that will ensure the uptake of all the opportunities that abound in the communications sector,” Danbatta said.
According to statista, 58 countries had 5G networks as of June 2021, up from 38 about a year ago. A dozen more have had 5G mobile technology deployed in part. It is in fact expected that 5G will reach 1 billion users in 3.5 years, compared with 4 years for 4G and 12 years for 3G.
TNG reports 5G is the fifth generation of mobile phone communications standards. It is a successor to 4G and promises to be faster than previous generations while opening up new use cases for mobile data.
Unlike past historical transitions in wireless architecture, 5G represents an ongoing evolution of existing networks rather than the wholesale replacement or “forklift” approach to deployment.
The 5G benefits range from faster speeds (up to 10x faster), much lower latency (up to 50x lower) and greater capacity allowing many more devices to be connected at the same time.
Up to 100 times faster than 4G, 5G, the fifth generation of cellular networks, is creating never-before-seen opportunities for people and businesses.
With faster connectivity speeds, ultra-low latency and greater bandwidth, 5G has the capacity to transform industries and dramatically enhance day-to-day experiences.
It has been assessed that 5G technology could be responsible for 22.3 million jobs and $13.2 trillion of global economic output by 2035.