Airtel Wins 5G Licence, Emerges Sole Bidder for Additional Two Lots in 3.5GHz Spectrum Auction

Emma Okonji

Airtel Networks Limited has emerged as the sole bidder for the additional two lots in the 3.5GHz spectrum auction that would drive 5G rollout in Nigeria.

The emergence of Airtel as the sole bidder has forced the Nigerian Communications Commission (NCC) to cancel the entire auction process, compelling it to announce the telco as the winner of the 3.5GHz spectrum for the 5G licence.

According to a statement released yesterday by the NCC, which was signed by its Director, Public Affairs, Mr. Reuben Muoka, only two operators expressed interest in the auction of the 3.5Hz spectrum band. They were Airtel Networks Limited and Standard Network. But only Airtel was able to make payment for the Intention to Bid Deposit (IBD) as at December 5, as stipulated in the Information Memorandum (IM) guiding the auction process.

Standard Network could not meet up with the IBD payment, a development that compelled NCC to announce Airtel as the sole bidder of the spectrum auction.

According to the statement which explained the current status of the 3.5GHz spectrum auction, Airtel met all the provisions of the IM and therefore emerged as the sole bidder for the 3.5GHz spectrum auction.

Part of the statement read: “The NCC hereby announces that by the close of business on Monday, December 5, 2022, only two companies expressed interest in the auction of the 3.5GHz Spectrum band namely; Airtel Networks Limited (Airtel) and Standard Network & Connections Limited (Standard Network).

“However, only Airtel paid the Intention to Bid Deposit (IBD) as stipulated in the Information Memorandum (IM) whereas, Standard Network sent an email appeal for the deadline to be extended by 12 working days which was not acceptable in view of the auction timetable.

Having met all the provision in the IM, Airtel has, therefore, emerged as the sole Bidder.

“Consequently, there shall be no further bidding and the Commission will proceed to the Assignment Stage in line with the published Information Memorandum guiding the licensing process.”

The NCC had fixed December 16th and 19th for the mock and actual auction, but with the recent development the dates would automatically be cancelled.

Airtel had participated in the initial 3.5GHz spectrum auction in December 2021, but could not continue with the bidding process after reaching a certain bidding threshold. It eventually withdrew from further bidding, leaving Mafab Communications and MTN that emerged as winners.

MTN has since rolled out its 5G network in some states but Mafab was yet to roll out.

MTN had indicated interest to bid for the additional two lots in the current 3.5GHz spectrum auction, but faced opposition from industry players and the regulator, who felt MTN may monopolise the 5G market in Nigeria, if allowed to bid a second time.