Nigeria’s 5G reserve price (RP) bid of $194.7 million (N75 billion) has been indexed among the costliest in the world but crowned prices from nations like India and South Africa.
According to The Guardian, though the environments differ, RP in the USA, China, Germany, Brazil seem to be the highest in the world.
In the USA, RP is around $81billion; UK, £1.1 billion; Germany, €1.5 billion and Brazil, $8.5 billion. On the other hand, RP in India was pegged at INR4.92 billion ($66.2 million), South Africa between $588, 000 and $4.5 million. In Egypt, the regulator is offering 60MHz of 2600MHz spectrum with a reserve price of $150 million per 10MHz.
The Nigerian Communications Commission (NCC), which will conduct the auction in the country, had noted that interested operators are anticipated to pay 10 per cent of the reserved price of $197.4 million to qualify to participate in the auction.
Furthermore, it added that two lots of 100MHz of the 3.5GHz spectrum would be auctioned next month at the RP.
During a stakeholders’ forum on the 3.5GHz spectrum in Lagos last week, NCC announced that it arrived at the spectrum price by assesing global best practices. It called for stakeholders’ backing to secure its success.
However, the NCC has said it was targeting
revenue of N632.39 billion for the 2022 fiscal year.
This was said by Executive Vice Chairman of the commission, Prof. Umar Danbatta during budget defence before the National Assembly Joint Committee on Communications in Abuja.
Danbatta said the N632.39 billion-targeted revenue will include expected proceeds from 5G spectrum auction.
“Each slot of the 5G spectrum is going for an exact price of N75 billion. However, in an auction, it can go as high as N100 billion.
“The exact price for the Spectrum auction, in 2022 will give the Federal Government, N300 billion; when the projected revenue is added to it, we are expecting well over N600 billion because it is an auction. Our revenue in 2022 will be higher than what is being generated in 2021.
“For the commission’s main budget, a sum of N86.2 billion is proposed for recurrent expenditure, N29.36 billion is for Capital, while N2.55 billion is earmarked for special projects,” he said.