The Global System for Mobile Communications Association (GSMA) told the Nigerian Communications Commission (NCC) that $500 million and 6,000 base stations are needed for 5G rollout in the country’s top 10 cities. Punch reported that the organization disclosed the information in its “Draft Information Memorandum for the Auction of 3.5 GHz Spectrum.”
According to the GSMA, the NCC released a “Nigerian National Broadband Plan 2020 – 2025” (NNBP), benchmarking a $197.4 million reserve price for a spectrum auction. The organization believes that the price will inhibit 5G rollout and is “not reflective of what the broadband hopes to achieve” based on the NNBP.
GSMA claims that the high spectrum prices will lead to reduced coverage, download speeds, and mobile broadband adoption. It added that the market should dictate spectrum assignments, not regulators.
Conversely, the NCC said it benchmarked its reserve price based on additional variables and studies before setting a price, which it believes is reasonable. Punch reported that research conducted by Coleago Consulting Limited showed the market value for 100 MHz of 3.5 GHz spectrum is $83.7 million, making the NCC’s reserve price 136 percent higher than the estimated market value.
Reader Interactions