FG Earns $600m From 3G Licences
 8th MAY 2007

By Everest Amaefule

The Federal Government has earned $600m from the sale of Third Generation mobile licences and frequencies to three digital mobile operators and one Long Distance Communication licence.

This followed the payment of $150m by each of the winners of the 3G licences, which were sold at the reserve price by the Nigerian Communications Commission.
Celtel Nigeria Limited, MTN Nigeria Communications Limited, Globacom Nigeria Limited and Alheri Engineering Nigeria Limited had been given the nod to acquire the licences, on March 19, 2007 by NCC.
NCC’s spokesman, Mr. Dave Imoko, confirmed to our correspondent on Friday that each of the winners had paid in full the cost of the licence and the frequency, which was assigned to them.
Seventeen companies had applied for the limited number of 3G licences, which NCC had offered for sale but by deadline, only four had paid the mandatory dues and thus eliminated the need for auction that had been scheduled for April 2.
At the announcement of the companies that won the frequencies, NCC had given the companies 14 days to pay but it had to extend the deadline on the request of the companies.
Four pairs of frequencies were allocated to the winners. These were categorised as Block A, 1920 – 1930MHz, paired with 2110 – 2120MHz; Block B, 1930 – 1940MHz, paired with 2120 – 2130MHz; Block C, 1940 – 1950MHz, paired with 2130 – 2140MHz and Block D, 1950 – 1960MHz, paired with 2140 – 2150MHz.
The payment of $600m brings to $1bn the foreign exchange which the Federal Government has earned this year through the sale of frequencies and licences.
In January, the Federal Government had earned $400m through the sale of 2G frequency spectrum to Mubadala Development Company of Abu Dhabi, United Arab Emirate.
According to the Executive Vice-Chairman of the NCC, Mr. Ernest Ndukwe, the money realised from the sale of frequency spectrum is usually paid into the national treasury.
With the payment for the spectrum, the companies are expected to roll out their 3G networks within a period of 12 months.
Some operators have indicated readiness to roll out the networks before expiration of the period.
Several services could be offered through a 3G network. These include voice telephony, video services, multimedia services, web browsing and real-time video streaming.

Source: Punch

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