Going by the number of years that talks have started over what is now globally recognised as a veritable tool for economic growth—broadband—which nations all over the world have been latching onto for economic gains, one would expect that Nigeria as a country should have made remarkable progress in deepening its penetration. Rather, the country has been stagnating around 6 per cent broadband penetration and the pace of efforts towards achieving the Federal Government’s target of 30 per cent penetration by 2018 is not in any way encouraging.
Under this prevailing circumstance, we cannot but marvel at the way the Nigerian Communications Commission, which is the telecom industry regulator, has been going about licensing of spectrum in the 2.6GHz Band, which is crucial for the deployment of Broadband across the country. It becomes worrisome that after failing to meet up with its time-table, which it fixed for the 2.6GHz auction for the fourth quarter of 2014, the regulator has shifted the auction again—and this time, it is until further notice.
Even though there was no clear-cut reason for its inability to carry on with the auction as planned last year, the Commission had in March fixed the auction for May 5, 2015, and with that, prospective investors would have, no doubt, dusted their briefcases in preparation for the auction having waited for months to hear from the regulator. Alas! A few days later, the NCC came up with another announcement of postponement, giving no reason whatsoever.
In what marked the second interruption of the planned sale of key national broadband licences, Dr. Eugene Juwah, the Executive Vice Chairman of the Commission gave an indication that the 2.6GHz auction timetable has been suspended until further notice.
“The Nigerian Communications Commission (NCC), on behalf of the Federal Government of Nigeria, regrets to inform parties interested in participating in the Auction of Frequency Spectrum Licenses in the 2.6GHz band that it has decided to postpone the process of the Auction until further notice”, Juwah said in the announcement issued on the telecoms regulator’s website.
Here is a Commission that had earlier released the auction rules, stipulating a reserve price of N3,184,800,000.00 ($16,000,000) per slot for the 14 available licence to enable winners provide broadband services across the country. The available slots of 14 licences totalling N130, 576,800,000 is expected to enable the winners offer broadband services across the country, under a government plan to offer impetus to diffusion of high-speed Internet services in Nigeria.
And even before the release of the details, the regulator had been going around the world calling on investors to come and invest in the country’s broadband space by bidding for some of these licences and building broadband infrastructures. We can only imagine what will be going through the minds of those prospective investors with the inconsistencies and uncertainties hanging over the auction at this juncture.
Where then lies the commitment the Commission had pledged to the point of declaring 2015 as the year of broadband in Nigeria when it continues to dilly-dally with the licence auction that is very key to actualising its target? For one, the regulator should realise that it needs the understanding and support of all stakeholders, especially, the prospective investors, to actualise this drive and it can only earn this confidence and support by coming out plain to explain whatever is causing the delay and shifting of the auction.
For this reason, we urge the Commission to be more proactive with information on the challenges it may be having in getting the process underway as, indeed, the investing public needs information to plan.
While acknowledging the doggedness and commitment of the Commission right from the period of mobile licence auctioning in 2001 in bringing the telecom industry to the level it is now with over 130 million mobile subscriptions, we will like to see the same zeal and determination in the efforts towards broadband revolution in Nigeria. The Nigerian citizens are looking forward to the regulator again to deliver broadband and make it ubiquitous and affordable as they enjoy mobile telephoning today.
Taking a cue from the Commission’s intervention in sports through its Tennis sponsorship, for instance—which of course is a commendable effort, the Nigerian public will benefit more and will applaud the commission more when it gives such schedules and plans as auctions, and follows them to the end.
Apart from the investment that this process will also bring to the country, it will expand frontiers of the commission and the government’s efforts. Therefore, NCC must take the auction seriously. The public will understand and empathise with it if it has challenges; but the commission must be open in relating such challenges through information to the public.