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Tag: Mafab

  • How Mafab, MTN dislodged Airtel in race for 5G deployment in Nigeria

    How Mafab, MTN dislodged Airtel in race for 5G deployment in Nigeria

    After 11 rounds of bidding that lasted eight hours, Mafab Communications Ltd and MTN Nigeria Plc dislodged Airtel Networks Ltd to emerge the two successful winners of the 3.5 gigahertz (GHz) spectrum auction for the deployment of Fifth Generation (5G) technology to support the delivery of ubiquitous broadband services in Nigeria.

    TheNewsGuru.com (TNG) reports both Mafab and MTN emerged winners in a keenly contested 3.5GHz Spectrum auction conducted by the Nigerian Communications Commission (NCC), in collaboration with the Federal Ministry of Communications and Digital Economy.

    Three companies, namely MTN, Airtel and Mafab Communications Limited, had qualified for the auction, having met the requirements stipulated in the Information Memorandum (IM) for the spectrum auction. The three companies had also participated in a mock auction held on Friday, December 10, 2021, which served as a precursor to the Main Auction conducted on Monday at the Transcorp Hilton Hotel, Abuja.

    In an exercise that clearly demonstrated demand outstripping supply, with Ascending Clock Auction System adopted by the NCC, the three bidders participated in the intensely competitive auction bid.

    In the first round of the auction, the bid price was fixed at $199,374,000.00; $201,367,740.00 at second round; $204,388,356.10 at third round; $209,407,962.50 at fourth round and $215,782,901.30 at the fifth round.

    The auction prices increased progressively to $224,414,217.43 at the sixth round; $231,146,643.96 at the seventh round; $240,392,509.71 at the eighth Round; $251,210,172.65 at the ninth round; and $263,700,050.00 at the round 10 of the auction exercise.

    The auction process reached its peak at round 11 when the bid price graduated to $275,904,886.25 with all the three bidders still actively participating.

    The Main Stage of the Auction, however, ended at the conclusion of the 11th round, with Airtel listing an exit bid of $270,000,000, while MTN posted an exit bid of $273,000,000, giving way to the assignment stage.

    At the assignment stage, Airtel had dropped off from the race having posted a lower exit bid, thus leaving Mafab and MTN as winners of the two available lots.

    Announcing the results of the auction exercise, the Executive Vice Chairman of NCC and Auction Overseer, Prof. Umar Garba Danbatta, who recalled the processes and activities leading to the successful conduct of the auction, said the NCC published a public notice on its decision to award two lots of 100 megahertz (MHz) 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 network in Nigeria.

    “Subsequently, an Information Memorandum 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 telecoms companies, viz: Airtel Networks Limited, Mafab Communications Limited and MTN Communications Nigeria Limited.

    “The auction held successfully today, Monday December 13, 2021 at the Transcorp Hilton Hotel, Abuja with the three bidders competing for the available two slots. The Commission adopted the Ascending Clock Auction format which ended after Round 11 and proceeded to the Assignment Stage. It is my pleasure to announce that at the end of the auction, Mafab Communications Limited and MTN Communications Nigeria Limited emerged as provisional licence winners,” he said.

    Arising from the above, Danbatta said that the winning bid price for the auction is $273,600,000 for each lot of 100 MHz TDD and the provisional winners are expected to pay the Winning Bid price, less the Intention-to-Bid Deposit, by February 24, 2022.

    He expressed satisfaction that the auction process was efficient, fair, credible, well-organised and transparent and was designed to deliver the ideal outcome.

    Accordingly, Danbatta said the strongest bidders have emerged provisional winners, raising a substantial amount for the Federal Government.

    The EVC congratulated the winners and thanked the Federal Government for its support and commitment to the deployment of 5G technology in Nigeria, which, he said, will bring substantial network improvements, including higher connection speed, mobility and capacity as well as low-latency capabilities to communications services in Nigeria.

    Sequel to the successful auction by the two winners, Danbatta said in line with the processes outlined in the IM, the provisional winners have proceeded to the Assignment Stage.

    “MTN Communications Nigeria Plc made an offer of $15,900,000 for the assignment of a preferred Lot, while Mafab Communications Limited made an offer of $11,120,000 for a preferred Lot. Thence, MTN Communications Nigeria Plc, having made the highest offer was given the right to select its most preferred Lot and it selected Lot 1 (3500-3600 MHz), while Lot 2 (3700-3800 MHz) is consequentially assigned to Mafab Communications Limited at no extra cost,” the EVC said.

    The EVC thanked all stakeholders, who have contributed to the success of the auction process. He said the huge investment that will accrue from the sales of the spectrum band auctioned will result in increased transformation in life and businesses.

    Earlier, at the opening ceremony, the Honourable Minister of Communications and Digital Economy, who doubles as the Chief Host, Prof. Isa Ali Ibrahim (Pantami), who emphasized Federal Government’s commitment to driving digital economy, commended the Commission for its efforts towards implementing the 5G Deployment Plan for the country.

    He expressed optimism that the dawn of 5G network in Nigeria will offer significant advantages over current technologies, some of which include much lower latency, higher bandwidth, greater device density, longer battery life for nodes, and greater network flexibility.

    Also in his remarks, the Chairman, Board of Commissioners, NCC, Prof. Adeolu Akande, said that spectrum plays a strategic role in meeting the insatiable demand for advanced mobile data services as well as a new wave of wireless broadband such as remote object manipulation, industrial automation, virtual and augmented reality, and next-generation connectivity for vehicles. He said the use cases will continue to increase the impact that mobile services have on societies and economies.

    He commended the Minister for his unflinching support, the Board of Commissioners, Management and staff of the NCC for the role they played in making the auction to be successful. He also thanked the bidders for believing in the Nigerian communications sector by their willingness to invest millions of dollars in the sector for the provision of 5G services. He said that the Commission is committed to transparency and openness, which the auction represents.

    Prof. Akande’s voice was amplified by the Executive Commissioner Technical Services at NCC, Engr. Ubale Maska, who served as the auction adviser. While delivering the Vote of Thanks, Maska conveyed the gratitude of the Commission to all stakeholders, giving special mention of the Auction Planning Committee, the media and staff of the Commission.

  • BREAKING: NCC makes history with auction of 3.5Ghz spectrum for 5G roll out in Nigeria

    BREAKING: NCC makes history with auction of 3.5Ghz spectrum for 5G roll out in Nigeria

    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.

  • Controversy rocks auction of spectrum band for 5G rollout in Nigeria

    Controversy rocks auction of spectrum band for 5G rollout in Nigeria

    The auction of spectrum for the rollout of fifth generation (5G) networks in Nigeria is presently enmeshed in a controversy after a report emerged that Nigeria’s telecoms regulators shifted grounds to accommodate some bidders.

    Although, the Nigerian Communications Commission (NCC), Nigeria’s telecoms regulators has clarified the issue, the report had it that the Commission was forced to move deadline for the submission of the bid and payment of the ten percent fee of $20 million after it emerged that only MTN Nigeria had complied with the requirement.

    Recall that the NCC announced a bid for the 3.5Ghz spectrum band for the rollout of 5G network in the country, and set the deadline for the submission of bids for Wednesday, November 24, 2021. However, the telecoms regulators moved the deadline from Wednesday, November 24, 2021 to Monday, November 29, 2021.

    On December 1, 2021, the Commission announced that at the close of the bid submission date of November 29, 2021, three companies, namely MTN Nigeria, Mafab Communications Ltd and Airtel Networks Ltd had successfully submitted their bids in line with the requirements of the Information Memorandum (IM).

    Meanwhile, the NCC in a statement released by its Director of Public Affairs, Dr. Ikechukwu Adinde, denied ever shifting grounds to accommodate bidders, stressing that the deadline was shifted following concerns expressed by industry stakeholders and potential bidders, including MTN.

    Adinde in the statement cited the strike by air traffic controllers of November 23, 2021, just a day before the deadline for the submission of bids, which disrupted flights operations in Lagos as part of reasons why the deadline was shifted, stressing that even MTN on November 23, 2021 communicated to the Commission via email, asserting its concerns about the air traffic controllers’ strike and how it is likely to impede timely submission of their bid.

    The Commission further stressed that the Business Day report is replete with misinformation, which the NCC said is capable of misleading industry stakeholders, the general public and undermining the integrity of the ongoing process for the auction of the 5G spectrum. The Commission also clarified that all three bidders are existing licensees of the Commission under different license categories and

    “For instance, the publication alleged that Mafab Communications is a relatively unknown operator in the industry, suggesting that it was not eligible to bid for the spectrum. The IM has clearly stipulated that new entrants into the industry can participate in the bid and if they are successful, the Commission will issue the entity an operating license in line with the extant provisions of the Nigerian Communications Act (NCA) 2003 and its licensing regulations,” the statement reads in part.

    The statement adds: “It is pertinent to state that the Nigerian Communications Commission maintains an unimpeachable record and reputation based on precedents of open and transparent spectrum auctions over the years, which had earned it both local and international recognition.

    “The Commission is consistently guided by its well-established principles of fairness, firmness and forthrightness and wishes to assure Nigerians that it is determined to ensure the successful implementation of the 5G Auction spectrum, which is set to take place on December 13, 2021”.