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5G spectrum auction bidders must pay a $27.36 million deposit – NCC
The auction is set for December 19, 2022, and the deposit amount is equal to 10% of the reserve price of $273.6 million for the spectrum.
- 5G spectrum auction bidders must pay a $27.36 million deposit
- Participation prerequisites
The upcoming 3.5GHz spectrum auction for 5G would require participants to deposit a $27.36 million Intention-to-Bid Deposit, according to the Nigerian Communications Commission (NCC) (IBD).
The NCC emphasized that the deposit must be paid at the latest by 5 PM on December 5, 2022, in a final Information Memorandum (IM) for the spectrum auction posted over the weekend.
The deposit sum equals 10% of the spectrum’s $273.6 million reserve price, and the auction is slated to take place on December 19, 2022.
“In accordance with the full instructions laid out within this IM, applicants, are to submit a completed application, including appropriate template documentation and confirmation of transfer of the Intention-to-Bid Deposit (IBD), of $27,3600.00 by 17.00 hours West African Time (WAT) on 05 December 2022.
“A Bank Guarantee, or similar instruments, will not be acceptable. This deposit will bind the Applicant to take up a license, should it be a successful bidder, at the Reserve Price or any higher bid value submitted during the process.”
MTN Nigeria is now qualified to participate in the auction because of the updated eligibility requirements in the final IM. Part of the eligibility requirements was modified in the amended IM, which was the outcome of the stakeholder engagement session held by the Commission last week.
READ MORE: MTN Nigeria wants to bid for a new 5G spectrum application this year
The amended IM contradicted NCC’s previous statement that licensees with up to 100MHz in the 3.5GHz band will not be permitted to take part in the auction.
“Any Licensee of the Commission or any entity that has up to 200MHz in the 3.5GHz band in Nigeria will not be eligible to participate in this Auction.”
No operator in Nigeria currently has access to 200MHz of the 3.5GHz frequency. With 100MHz apiece, MTN and Mafab Communications, who took first place in the initial 3.5GHz spectrum auction last year, can still bid in the upcoming auction.
While Mafab hasn’t launched yet, MTN plans to bid for another 100MHz from the two lots that will be up for auction the following month. The company claims that having an additional 100Mhz block in the 3.5GHz radio band will make it possible to provide 5G service more effectively.