Telecommunications operators on Monday in Lagos, revealed reasons behind the low investors’ response that greeted the auction conducted by the Nigerian Communications Commission’s (NCC) in the 2.6GHz spectrum earlier in the year.
The 2.6GHz spectrum is a broadband spectrum.
It will be recalled that only MTN bided and was announced winner of six lots out of the available 14 lots in the 2.6GHz spectrum licence in June. MTN paid N19.2 billion for the licence.
If the auction had got enough industry responses both local and international, in terms of investments, NCC would have raked in about N44 billion into the Federal Government’s coffers.
However, that was not to be, because of some loopholes in the process as identified by some operators at the NCC organized postmortem forum on the 2.6GHz auction.
The Director, Spectrum Administration at NCC, Austin Nwaulune, told the audience at the forum that NCC organised the postmortem forum to find out what went wrong with the auction exercise that forced the operators to back out from the exercise.
He said that with various feedbacks got, the commission would subsequently be able to make proper adjustments in the future.
As such, most of the operators, who attended the forum, claimed not to have been comfortable with the conditions for the auction exercise, hence their reasons for backing out of the process.
They challenged NCC to the fact that every auction exercise, where the highest bidder wins has the characteristics of being lopsided, and designed to favour only big operator, which has the financial capability, to the detriment of small operators, whose financial base is not that strong.