South African telecommunication giant, MTN and Mafab Communications have snapped up the two slots available for deployment of of 5G technology in Nigeria.
The highly competitive bidding process came to a close at 7.20 pm today, at round 11, with MTN and Mafab Communications winning the auction at the price of $273 million. Airtel dropped at $270 million.
MTN however offered additional $15.900 million for a preferred spectrum lot above the $11.120 million offered by Mafab.
The winners are expected to pay the bid price on February 24, 2022 at prevailing official naira exchange value.
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, seven round at $231, 146,643.96, eight round, $240.392,509.71, round nine at $251,210,176.65, round ten at $263,017,050.77 million, round eleven was on offer at $275,904,886.25 million.
An official of the Nigerian Communications Commission (NCC) Dr Shafi Ndanusa Assistant Director, Administration who ran commentary on what was going on at the bidding room, said the auction manager decides what the price would be at every stage of the bid, using the ascending clock auction system. He adds a certain percentage of 1 per cent or thereabout into the previously accepted price by the bidders, the price that would be on offer for the following round.
When the bid opened at round one the auction manager added about 1 % to the reserved price of $197.4 million which brought the price on offer for the first round to $199.347 million. The three bidders were asked to agree to that price or reject. When the three bidders accepted the price of $199.347 million the auction, as determined by the auction manager, they were now qualified to go into the second round. The process continued in the same way up to round ten, when…
The auction started with a brief ceremony where the Minister of Communication and Digital Communication, Professor Isa Ibrahim Pantami , Chairman of the Nigerian Communications Commission ( NCC) board of directors, Professor Adeolu Akande and Executive Vice Chairman of the NCC, Professor Umar Danbatta addressed the participants and observers on the imperative of the spectrum auction.