Operators in the telecommunications sector have objected to MTN’s request to be allowed to participate in the upcoming 5G licence auction in December 2022.
A spokesperson for MTN Nigeria at the Stakeholders
Engagement on the Draft Information Memorandum (IM) on 3.5GHz Spectrum Auction
said the company had entered the last auction in 2021 with the expectation that
it is an open market and it would be allowed to participate in other auctions
should the need arise.
MTN won Lot B in 2021 and what NCC is currently auctioning
is Lot A and C. The position of the telco is that OEMs that manufacture the 5G
equipment often produce for two lots, either A and B or B a C. The telco says
having a licence for two lots provides it with the necessary equipment it
requires for effective deployment and it makes the cost of the service cheaper
for consumers.
However, the representatives of telcos like Airtel and
others said it goes against the spirit of competition in the market for one
telco to hold more than once licence when other players are yet to get any of
the licence.
Nigeria has four 5G licences. So far 2 of these licences
have been auctioned although only one licences has launched the service
commercially.
Ubale Maska, Executive commissioner, Technical Services, NCC
said MTN’s request isn’t a first in the telco industry as there are precedents
and Nigeria is an open market.
Umar Garba Danbatta, Executive Vice Chairman of NCC said all
requests will be given due consideration and final feedback made before the
auction.
The EVC said more comments are invited and the auction
process isn’t to generate revenue for the government.
“The motive is not to generate money for the federal
government. It has nothing to do with the revenue we are going to generate. The
price was determined by the last auction. We will always make reference to the
reserve price no matter when the auction was had,” Danbatta said.