5G Auction: MTN, Mafab win bid with $275.9m

Telecoms giant MTN Nigeria and new comer Mafab Communications Ltd have won the bid for the 3.5GHz spectrum licence that will see them roll out the Fifth Generation (5G) network in Nigeria.

The auction, organised by the regulator, Nigerian Communication Commission (NCC), which took place on Monday, December 13, 2021, at the Transcorp Hilton Hotel, Abuja, was done using the Ascending Clock Auction System.

The ascending clock system is a process where the auction manager increases the bidding price at every bidding round, allowing the law of demand and supply.

MTN and Mafab clinched the licence to deploy the world’s latest technology in communication with a successful bid of $275,904,886.25 million in an auction that spanned 11 rounds and dragged into Monday night.

The third contender for the two available licences, Airtel Networks Ltd, dropped its interest at $270 million to produce the two winners at the end of 11th round of bidding.

The reserve price per lot was initially set at $197,400,00 but was raised repeatedly by the auction manager, reaching $275,904,886.25 at round 11. The bidding process then moved to the assignment stage.

READ: MTN, Airtel, Mafab qualify for 5G auction – NCC

At the assignment stage, MTN offered $15,900,00 and was assigned lot one, while Mafab offered $11,120,000 and was awarded slot two at no extra cost.

RELIABLESOURCENG.COM gathered that the first slot (spectrum) is 3500-3600mhz while the second slot is 3700-3800mhz.

The winners are expected to pay the bid price by February 24, 2022, at the prevailing official Naira value. This will see the Federal Government’s revenue swelling by $546 million.

The first round of the auction started at a price of $199,347,256, second round closed at $201,367,740 million, the third at $204,388,256, the fourth at $209,497,962.50, the fifth at $215,782,901.38, the sixth at $224,414,217.43, round seven at $231,146,643.96, round eight at $240,392,509.71, round nine at $251,210,176.65, round ten at $263,017,050.77 million, round eleven closed at $275,904,886.25 million.