MTN has won the sale of the Nigerian 2.6 GHz frequency telecom band by the Nigerian Communications Commission and has paid 19.2 billion Naira (96 million US Dollars) for the license. The license was granted for 2×30 MHz frequency in the 2.6 GHz
The auction was published in March 2016 with the NCC stating in an Information Memorandum its intention to auction 2×70 MHz in the 2.6 GHz frequency band on behalf of the Federal Government of Nigeria.
NCC later said that as at May 20th, ,2016, there was only one qualified bidder that was interested in six out of the fourteen available slots and therefore there was no need for an auction anymore.
According to reports, the NCC set a 3.2 billion naira (16 million dollars) reserve price for each slot of the frequency spectrum. Each frequency slot is made up of two portions of 5MHz.
In a statement on the sale by the Nigerian Communications Commission delivered by the Director of Public Affairs, they said “At the close of submission of applications and the subsequent evaluation thereof, MTN Nigeria Communications Limited (MTN) emerged the sole approved bidder with an expressed interest to bid for 2x30MHz of the available frequency, Consequent upon the above, and in accordance with clause 6.5.3 of the IM which mandates the Commission to provisionally award license(s) to the approved bidder(s) if the aggregate demand is less than or equal to the number of Lots on offer, the Commission is pleased to announce that MTN has been provisionally awarded 2x30MHz frequency in the 2.6GHz Band,”
Mr Ojobo also said that MTN had 21 days from the date of the provisional award, June 13, 2016, to pay the reserve price and in the event that MTN fails to pay the fee within the specified period, It will lose the award and also forfeit the IBD.
MTN paid the 96 million USD price on the 25th of June, 2016 and now has full access to the frequency band.