Figures released by the National Bureau of Statistics, NBS, showed that the sector recorded a 4.3 per cent   increase from its performance in the last quarter of 2022 when it recorded 13.55  per cent.

When compared on a year-on-year basis, the growth showed a positive progression from 12.94  per cent  in the first quarter of 2022 , to the 2023 figure of 14.13, which is an approximate growth of 9.19  per cent.

The percentage of telecom contribution to GDP was calculated from 46 distinct sectors of the economy, which constitute telecom and information services baskets.

The Nigerian telecom industry has continued its show of positive outlook, which is credited to the innovative and predictable telecom regulatory environment promoted, and implemented by the Nigerian Communications Commission, NCC.

One of the key highlights of the telecom industry performance within the period was the generation of $820.8 million for the federal government from 5G spectrum licences fees paid by three eventual winning operators, MTN, MAFAB and Airtel.

Following the issuance of the licences in December 2021 to MTN and MAFAB, both companies have launched 5G services.

Airtel, which received its licence in December 2022, is set to launch services this month, June 2023.

Another major development in the sector was the launch of Starlinks broadband services, a satellite-based wireless broadband services with potential nationwide coverage.

This followed the issuance of licence to Elon Musk-owned SpaceX by the Commission.

The services are now available in different parts of the country.

Meanwhile, the growth statistics of the telecom industry are showing an impressive record of contributions to the economy.

The number of phone subscribers as at April 2023, stood at 223.6 million subscribers, scoring a teledensity of 117  per cent.

Internet subscribers for the same period were 157 million while broadband subscriptions stood at 92 million, translating to 48 per cent broadband penetration in the country.

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The auction was conducted by the commission on Monday, December 13, 2021.

According to the NCC’s Director, Public Affairs, Dr. Ikechukwu Adinde, in a statement issued on Wednesday, the management of the commission led by its Executive Vice Chairman, EVC, Prof. Umar Garba Danbatta, confirmed this to the Board of Commissioners at the Board’s Special Meeting, which took place on Wednesday, April 20 and Thursday, April 21, 2022, where the Board considered updates from Management on the status of the spectrum auction.

Adinde said with the issuance of the final letters of awards of 5G spectrum and in line with the Auction’s Information Memorandum, IM, the two licensees are now expected to accelerate deployment of 5G network that will usher Nigeria into a more robust Fourth Industrial Revolution, 4IR, and a more digitised Nigerian economy.

He said in line with the terms and conditions of the 5G license, the licensees are expected to commence roll out of 5G services effective from August 24, 2022.

The 5G network, when deployed, he said, would bring a lot of benefits and opportunities that will engender accelerated growth and smart living in the country.

The technology is also expected to bring substantial network improvements, including higher connection speed, mobility and capacity, as well as low-latency capabilities.

He said following a transparent, diligent, fair and credible auction of 3.5GHz on December 13, 2021, the National Frequency Managenent Council, NFMC, chaired by the Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, had on February 22, 2022, officially handed over the spectrum allocation for 5G deployment as well as federal government-approved national policy on 5G to the commission.

Subsequently, the commission, on February 24, 2022, confirmed the full payment of $273.6 million each by the two spectrum winners, in addition to spectrum assignment fee paid by MTN, for the 5G spectrum licence.

The commission is optimistic that effective implementation of the National Policy on 5G will accelerate the actualisation of the national targets in the Nigerian National Broadband Plan, NNBP, 2020-2025, the National Digital Economy Policy and Strategy, NDEPS, 2020-2030, as well as other sectoral policies designed to enhance Nigeria’s digital transformation.

While the licensees are expected to meet the timetable regarding their 5G network rollout obligations, the NCC is said to require collective efforts and support of the private-sector and government toward transforming every aspect of the nation’s economy through 5G, which would herald greater transformation than what the nation witnessed with the 1G, 2G, 3G and 4G.

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The two companies are the provisional winners of the 3.5 Gigahertz (GHz) spectrum licence.

According to the Director, Public Affairs, NCC, Dr. Ikechukwu Adinde, in a statement, the Executive Vice Chairman of the NCC, Prof. Umar Danbatta, officially 24, 2022, just as the deadline set for the two winners of the spectrum auction elapsed.

As part of the auction process emplaced by the commission in the Information Memorandum (IM), three companies, namely MTN Nigeria, Mafab Communications Ltd and Airtel Networks Ltd submitted bids with an initial bid deposit (IBD) of $19.74 million, representing 10 per cent of the Reserve Price of the 3.5GHz Spectrum by the close of the Bid submission date of November 29, 2021.

Following the successful auction on December 13, 2021 and the emergence of MTN and Mafab as winners, they were required to pay the balance of the bid amount of $253.86 million on or before February 24, 2022.

However, aside the $273.6 million payment, MTN paid additional $15.9 million, being the bidding sum it offered at the assignment state of the spectrum auction, making it clinch its preferred Lot 1 (3500-3600 Megahertz-MHz) in the 3.5Ghz spectrum; while, Mafab Communications, which bid lower at the assignment stage, consequentially settled with Lot 2 (3700-3800Mhz) at no extra cost.

Confirming the payments by the two licensees, Danbatta said: “I wish to officially announce that NCC has received and confirmed payments from MTN and Mafab for their acquisition of 1 slot of 100Mhz each in the 3.5Ghz spectrum auction, which was successfully conducted by the Commission on December 13, 2021. They both met the deadline of February 24, 2022 as set by the Commission.

“Arising from this and on behalf of the Honourable Minister of Communications and Digital Economy, the Board and Management of the NCC, I wish to congratulate the MTN and Mafab for this feat, as we look forward to accomplishing other deployment timelines in the 5G deployment roadmap, as articulated in the National Policy on 5G Networks for Nigeria’s Digital Economy,” Danbatta stated.

For meeting the payment deadline, Danbatta has commended the two companies for their commitment to 5G deployment drive through their private investments, which he said, was a demonstration of the licensees’ belief in the sound regulatory environment in the Nigerian telecommunications sector.

Danbatta also expressed appreciation to the federal government for its support and commitment to the deployment of 5G technology in Nigeria which, he said, would bring substantial network improvements, including higher connection speed, mobility and capacity, as well as low-latency capabilities to communications services in Nigeria.

The commission published a Public Notice on its decision to award two lots of 100MHz Time Division Duplex (TDD) available in the 3.5 GHz band through an auction process, to support the delivery of ubiquitous broadband services for the deployment of 5G technology in Nigeria.

Subsequently, an Information Memorandum (IM) was issued on November 10, 2021, in which Bid Applications for the available spectrum lots were invited.

By the deadline for receipt of applications on November 29, 2021, the Commission received applications from three licensed telecommunications companies, namely: Airtel Networks Limited, Mafab Communications Limited, and MTN Communications Nigeria Plc.

The auction held successfully on Monday, December 13, 2021 at the Transcorp Hilton Hotel, Abuja, with the three bidders competing for the available two lots in which the commission adopted the Ascending Clock Auction format that ended after Round 11, and proceeded to the Assignment Stage.

In the auction, MTN and Mafab emerged provisional licence winners and arising from this, the winning bid price for the auction was put at $273.6 million for each lot of 100 MHz TDD.

The provisional licence winners were then directed to pay the Winning Bid Price less the Intention-to-Bid Deposit, by February 24, 2022.

Industry stakeholders and observers have commended the Commission for the auction process, described as efficient, fair, well-organised and transparent; as well as designed to deliver the ideal outcome which saw the strongest bidders emerge as winners, raising a substantial amount for the federal government and setting the stage for the next phase in Nigeria’s 5G roadmap.

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The Executive Vice Chairman, EVC, of the commission, Prof. Umar Danbatta, gave the hint in an interview with the News Agency of Nigeria, NAN, in Lagos.

Danbatta said, however, that the rollout of the three licences would depend on the pace at which winners of the first two licences developed their respective spectrum.

The EVC spoke to NAN when he accompanied the Minister of Communications and Digital Economy, Prof. Isa Pantami, to Lagos for a breakfast session with start-up digital innovation techs stakeholders on Tuesday.

The federal government had in December 2021 announced successful bidders for two 3.5GHz spectra of the 5G network licences for $547.2 million.

MTN Nigeria and Mafab Communications won the bidding and were given up till Thursday, February 24 to pay $273,600,000 each.

Danbatta confirmed that MTN had paid fully for the licence while Mafab still had a grace of two days to pay up.

The federal government last week officially handed over the spectrum allocation for 5G deployment in the country to the NCC in Abuja.

“Two telecommunication companies won the bid for the 5G spectrum licences in December and were given two months within which to pay up.

“So far, MTN has paid $273,600,000 while Mafab Communication has up to the February 24 to pay.

“There is still time and we are optimistic,’’ he said.

According to the EVC, there is a provision in the Information Memorandum that says “we need to give our preferred bidders up to two years to operate.’’

He did not comment on what would likely happen if Mafab did not meet the payment deadline.

Danbatta, however, added that there was also a provision that the waiting period could be reviewed.

“I’m not saying the review is in the process as we talk.

“Not yet because we want to ensure that these two assigned licences have started operations and are okay.

“Of course, we will give them time to see what plans they have because they need to start implementing their plan for expansion of infrastructure that will support these additional services.

“Everything is on the table, meaning we have so far auctioned two slots.

“We have three more to go and nothing stops the NCC from assigning the remaining slots.’’

He, however, said that NCC was delaying to roll out the remaining slots “until after the two years specified or the government may say, look, cut down the years from two years to maybe one year.’’

Danbatta also noted that the government could provide additional incentives to the two licensees.

“This is so that together, we can be able to agree that there is a need for a reduction in the waiting time for a licence,” he said.

Source: NAN

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Tinubu, former governor of Lagos State is a national leader of the All Progressives Congress, APC.

In a statement by its Director, Public Affairs, Dr. Ikechukwu Adinde, the NCC said in its routine media review it became aware of some publications alleging the involvement of Tinubu in Mafab Communication Limited.

NCC stated that consistent with its culture and tradition, the process that led to the auction of the 5G spectrum was open, fair and transparent in the most.

According to the regulatory body, the public auction followed a rigorous due process and was witnessed by a cross-section of stakeholders as observers, including the media, the Association of Telecom Companies of Nigeria (ATCON), the Independent Corrupt Practices  and Other Related Offences Commission (ICPC) as well as civil society groups.

The statement by NCC reads in full:

5G Auction: NCC not aware of Senator Bola Tinubu’s connection to Mafab Communications Ltd.

In the course of its routine media review, today, December 15, 2021, the Nigerian Communications Commission (NCC) became aware of publications in some online media channels alleging the involvement of Senator Bola Ahmed Tinubu, former Governor of Lagos State, in Mafab Communications Limited, one of the winners of the 5G spectrum sold by the Commission in a public auction conducted on Monday, December 13, 2021, at the Transcorp Hilton, Abuja.

It bears restating that, consistent with the Commission’s long-established regulatory culture and tradition, the process leading to the auction of the 5G spectrum was open, fair and transparent in the most, as the public auction followed a rigorous due process and was witnessed by a cross-section of stakeholders as observers, including the media, the Association of Telecom Companies of Nigeria (ATCON), the Independent Corrupt Practices  and Other Related Offences Commission (ICPC) as well as civil society groups.

Mafab Communications Limited is a corporate entity duly licensed by the Commission to conduct telecommunications business. The company, which is in good regulatory standing with the Commission, currently holds international data access (IDA), inter-connect data exchange (IDE) and Value-Added Service (VAS) licences.

It is pertinent to state that the Information Memorandum (IM) for the auction of the 3.5 gigahertz (GHz) spectrum clearly set out eligibility criteria for participation of interested bidders in the auction, which included that new companies could participate in the bid.

Over the years, the NCC has had spectrum auctions and as an independent regulatory agency, has maintained an undisputable reputation of successful auctions based on openness, fairness and transparency, a fact widely acknowledged locally and internationally. NCC’s auction proceedings conform to international best practice, devoid of any undue influence or interferences whatsoever.

A higher standard of integrity and openness was emplaced in the 5G auction as the process was, for the first time, witnessed by the public both physically and virtually through a link provided by the Commission on its official website.

The Commission would like to assure Nigerians that, following the successful auction of the 5G spectrum, it is prepared to drive the implementation of the next phase of the deployment of the new technology, in line with the Federal Government’s approved plan, for the benefit of all citizens.

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The two winners emerged in a keenly contested 3.5GHz Spectrum auction conducted by the Nigerian Communications Commission, NCC, in collaboration with the Federal Ministry of Communications and Digital Economy.

The event took place at the Transcorp Hilton Hotel, Abuja on Monday.

Three companies, namely MTN, Airtel and Mafab Communications Limited, had qualified for the auction, having met the requirements stipulated in the Information Memorandum, IM, for the spectrum auction.

The three companies had also participated in a mock auction held on Friday, December 10, 2021, which served as a precursor to the Main Auction conducted on Monday.

In an exercise that clearly demonstrated demand outstripping supply, with Ascending Clock Auction System adopted by the commission, the three bidders participated in the intensely competitive auction bid.

In the first Round of the auction, the bid price was fixed at $199,374,000.00; $201,367,740.00 at second Round; $204,388,356.10 at third Round; $209,407,962.50 at fourth Round and $215,782,901.30 at the fifth Round.

The auction prices increased progressively to $224,414,217.43 at the Sixth Round; $231,146,643.96 at the seventh Round; $240, 392,509.71 at the eighth Round; $251, 210,172.65 at the ninth Round; and $263,700,050.00 at the Round 10 of the auction exercise.

The auction process reached its peak at Round 11 when the bid price graduated to $275,904,886.25 with all the three bidders still actively participating.

The Main Stage of the Auction, however, ended at the conclusion of the 11th Round, with Airtel listing an exit bid of $270,000,000, while MTN posted an exit bid of $273,000,000, giving way to the Assignment Stage.

At this point, Airtel had dropped off from the race having posted a lower exit bid, thus leaving Mafab and MTN as winners of the two available lots.

Announcing the results of the Auction exercise, the Executive Vice Chairman of NCC and Auction Overseer, Prof. Umar Garba Danbatta, who recalled the processes and activities leading to the successful conduct of the auction, said the NCC published a public notice on its decision to award two lots of 100 megahertz (MHz) Time Division Duplex (TDD) available in the 3.5 GHz band through an auction process to support the delivery of ubiquitous broadband services for the deployment of 5G network in Nigeria.

“Subsequently, an Information Memorandum was issued on November 10, 2021, in which Bid applications for the available spectrum lots were invited. By the deadline for receipt of applications on November 29, 2021, the commission received applications from three licensed telecoms companies, viz: Airtel Networks Limited, Mafab Communications Limited and MTN Communications Nigeria Limited,” he said.

“The auction held successfully today, Monday December 13, 2021 at the Transcorp Hilton Hotel, Abuja with the three bidders competing for the available two slots. The Commission adopted the Ascending Clock Auction format which ended after Round 11 and proceeded to the Assignment Stage. It is my pleasure to announce that at the end of the auction, Mafab Communications Limited and MTN Communications Nigeria Limited emerged as provisional licence winners,” he said.

Arising from the above, Danbatta said that the winning bid price for the auction is $273,600,000 for each lot of 100 MHz TDD and the provisional winners were expected to pay the Winning Bid price, less the Intention-to-Bid Deposit, by February 24, 2022.

He expressed satisfaction that the auction process was efficient, fair, credible, well-organised and transparent and was designed to deliver the ideal outcome.

Accordingly, Danbatta said the strongest bidders had emerged provisional winners, raising a substantial amount for the federal government.

The EVC congratulated the winners and thanked the federal government for its support and commitment to the deployment of 5G technology in Nigeria, which, he said, would bring substantial network improvements, including higher connection speed, mobility and capacity as well as low-latency capabilities to communications services in Nigeria.

Sequel to the successful auction by the two winners, Danbatta said in line with the processes outlined in the IM, the provisional winners had proceeded to the Assignment Stage.

“MTN Communications Nigeria Plc made an offer of $15,900,000 for the assignment of a preferred Lot, while Mafab Communications Limited made an offer of $11,120,000 for a preferred Lot. Thence, MTN Communications Nigeria Plc, having made the highest offer was given the right to select its most preferred Lot and it selected Lot 1 (3500-3600 MHz), while Lot 2 (3700-3800 MHz) is consequentially assigned to Mafab Communications Limited at no extra cost,” the EVC said.

The EVC thanked all stakeholders who contributed to the success of the auction process.

He said the huge investment that would accrue from the sales of the spectrum band auctioned would result in increased transformation in life and businesses.

Earlier, at the opening ceremony, the Minister of Communications and Digital Economy, who doubled as the Chief Host, Prof. Isa Ali Ibrahim (Pantami), who emphasized federal government’s commitment to driving digital economy, commended the commission for its efforts towards implementing the 5G Deployment Plan for the country.

He expressed optimism that the dawn of 5G network in Nigeria would offer significant advantages over current technologies, some of which include much lower latency, higher bandwidth, greater device density, longer battery life for nodes, and greater network flexibility.

Also in his remarks, the Chairman, Board of Commissioners, NCC, Prof. Adeolu Akande, said that spectrum played a strategic role in meeting the insatiable demand for advanced mobile data services as well as a new wave of wireless broadband such as remote object manipulation, industrial automation, virtual and augmented reality, and next-generation connectivity for vehicles.

He said the use cases would continue to increase the impact that mobile services had on societies and economies.

He commended the minister for his unflinching support, the Board of Commissioners, Management and staff of the NCC for the role they played in making the auction to be successful.

He also thanked the bidders for believing in the Nigerian communications sector by their willingness to invest millions of dollars in the sector for the provision of 5G services.

He said that the Commission was committed to transparency and openness, which the auction represents.

Akande’s voice was amplified by the Executive Commissioner Technical Services at NCC, Engr. Ubale Maska, who served as the auction adviser.

While delivering the Vote of Thanks, Maska conveyed the gratitude of the commission to all stakeholders, giving special mention of the Auction Planning Committee, the media and staff of the commission.

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