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Three To Battle For Two Lots At 5G Auction

Always, the Nigerian Communications Commission, NCC, would never accommodate anything that impugns one of its hard-earned intangibles – integrity at auctions. As three organizations – two giants and a dark horse – line up for what promises to be a financially bruising race, the first real test by this administration, the Commission, last week, rose in stout defense of the process against media reports that the proposed 5G auction scheduled for mid-December is going through some situations.

The date is being pushed to accommodate some documentation weaknesses on the part of applicants or even accommodate unforeseen circumstances, it was hinted.  The commencement of the licensing of 3.5GHz, the band of 5G services began with the publication of the Information Memorandum, IM, on October 6, 2021, with some other milestone activities scheduled to happen before the auction proper holding in the week commencing December 13, 2021.

Was there any? The Commission, through the Public Affairs Director, Dr. Ikechukwu Adinde told its story.

Comments on the draft IM were received by the Commission up until October 28, 2021. On November 3, 2021, the Commission held a stakeholders engagement forum in Lagos where comments were received from a broad spectrum of stakeholders, including the major operators and exhaustively discussed and considered. On November 10, 2021, the Commission published the final IM, and stakeholders’ comments thereon on its website and national dailies, and set the deadline for the submission of bids on Wednesday, November 24, 2021.

There is one small information in the IM which the Commission based its action upon. It states as follows: “The Commission reserves the right to make necessary and reasonable adjustments to the process in the overall interests of achieving a fair and transparent outcome.”

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Although there has been some level of observed attenuation at the Commission, more because of regulatory capture from higher quarters, its claim to regulatory transparency at the auctions can hardly be faulted. However, the Commission should understand that it is the responsibility of the media to interrogate important projects, like the auction, in order to put the agencies in charge on their toes.

By December 1, 2021, the Commission announced that by the close of work of November 29, 2021, three companies had successfully submitted their applications, including the IBD of US$20m. The companies are MTN Nigeria, Mafab Communications Limited and Airtel Networks Limited. The Commission wasn’t happy, however, that Mafab was referred to as relatively unknown; after all it is a licensee.

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I am sure as the breaking of day tomorrow that not even Mafab will dispute such a-not-too savoury appellation. Information available on its website says that it was incorporated only on July 8, 2020, to operate Interconnect Exchange and International Data Access.

One may even be petulant to observe that not too much of business happened last year because of COVID-19. But just over a year later the organisation is in a position to shell out an IBD of US$20m, and if we still hold strongly to the Biblical allegory of a David taking down Goliath; we could as well see a rookie operation pay over US$200m for a 5G license. Obviously people will be very interested in the company and even in the names behind it, even if it is just to put garlands around their necks. So, more questions will still come, unfortunately.

However, NCC should be reassured that Nigerians are looking forward to 5G licensing with lots of optimism as the communications industry gets complicated daily with bad services. So much of magic has been attributed to 5G. Nigerians are lookingforward to sharing a little bit of the magic.

But there is a little landmine, a little freaky bubble that could burst unto unpleasantness and inevitable failure. A cross-reference at the licensing of the Payment Service Bank, PSB, by the Central Bank of Nigeria, CBN, could provide all the wisdom. Initial licensing was done using wishing as reality, until it took a redemptive action recently by doing another licensing round.

The 3.5 GHz Information Memorandum promised transparency of the auction process. That is what should be served a people still hungry for a good streak from this government.

Source: vanguard

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