Professor Umar Danbatta, EVC of NCC
Stakeholders and industry watchers in the telecoms industry have called for an effective spectrum management through spectrum pricing, training and sharing as well as active infrastructure sharing among telcos for pervasive broadband deployment across the country.
This was the consensus at the stakeholders forum on 2.6GHz spectrum auction (post mortem) organised by the Nigerian Communications Commission to ascertain issue and developments on the auction of the 2.6GHz spectrum earlier this year which fell below expectations; having on bidder and winner; MTN participate in the auction.
The operators who reeled off issues on their non-participation on at the auction, lamented on the reserve price for the auction as being capital intensive and on the high side, which favours only those operators who have huge visit also to industry or the ‘deepest pockets’ and considering the economic climate, it was difficult for investors to operate at this time; given the big challenge of trying to get foreign investment and Foreign Exchange, where local funding has also become a big issue and no way of justifying the reserve price of the auction by the operators.
They argued that if spectrum is used to impact on the citizens through ubiquitous broadband and then sorry much is being paid for the resource by the operators then it will impact negatively on the consumers who will pay more for services.
The Stakeholders however admonished the NCC, amongst other things to: Look at other ways of spectrum allocation; lower the cost of spectrum/better pricing; sharing revenue instead of licensing; cheaper spectrum and more efficient ways of utilizing the USPF to support the operators for better participation by the operators in subsequent auctions.
Speaking earlier in his opening remark at the forum, the Executive Vice Chairman of the NCC, Prof. Umar Danbatta said that the efficient and effective licensing and usage of frequency spectrum is one of the critical basis on which the explosive growth of the industry is based.
According to him, “with the progress made which has addressed voice communications with increased mobile penetration to about 109 per cent, the Commission in line with the objectives of the National Broadband Plan aims to increase broadband penetration across the country to 30 per cent by 2018”.
Speaking for the EVC, the Director, Public Affairs, NCC, Mr Tony Ojobo added that, the catalytic impact that the growth of the telecommunications industry have had on the Nigerian economy has been profound. “This positive impact can be accelerated with the pervasive deployment of broadband infrastructure. As most Nigerians today access the internet via wireless means, it is critical that important resources for last mile broadband deployment (like frequency spectrum) continue to be effectively, efficiently and transparently licensed for the pervasive spread of broadband services.”
“It is in line with this objective that the Commission recently conducted an auction for the available Lots in the 2.6 GHz spectrum band. The Commission in consonance with its practice of collaborative regulation seeks to get useful industry feedback on the auction with the aim of ensuring the effective and efficient usage of available spectrum bands for the delivery of broadband internet access to Nigerians,” Danbatta said.
The Director Spectrum Administration, NCC, Engr. Austine Nwaulune however alluded to the fact that the NCC will work in the best interest of all stakeholders as the issues discussed will be considered by the commission, as the commission is interested in seeing that the industry really progresses.
