NCC Considers Spectrum Trading for Telecoms Sector

  • spectrumGSMA, ATCON, ALTON Okay Regulator’s Guideline

Industry watchers have given their nods for full implementation of spectrum trading to address band scarcity amidst abundance in Nigeria’s danbattatelecommunication sector.

This came as the industry regulator; Nigeria Communications Commission(NCC) said it will introduce a framework and guideline for the implementation of a secondary market  for spectrum trading among operators and players in the industry.

The executive Vice Chairman of the Nigeria Communications Commission(NCC) who said this in Lagos at the first annual forum on Engineering and Emerging Technologies in the Communication Industry stated that there is need for more spectrum in the hinterland parts n of the country beyond the urband area explaining that this can only be achieved through spectrum.

He said “Spectrum trading is spectrum management practice that allows or permits spectrum license right and obligation be transfeted from one party to another in various forms and scope.

“Spectrum trading is now seen as a key step to be taken in the reform of spectrum management regulatory practice eliminating the artificial scarcities of spectrum which increases the prices of spectrum using services and the affects the competitiveness of different companies.

This will also create avenue for various forms of partnership that will ensure that spectrum is not left unused in any part of the country. We envisaged that this will bridge the access and service gaps currently existing in certain rural communities which today are either underserved or unserved., he said”

Noting why the commission is set to adopt the introduction of a secondary market for Spectrum, known as Spectrum Trading in Nigeria Danbatta who was represented by Director of Spectrum Management, NCC Mrs  Funlola Akiode said “The Commission intends to review the Spectrum Management Policy and develop additional strategies to meet the increasing demand for spectrum by the Operators due to expansion of access to mobile services and improvement of quality services delivered by Operators.”

In his paper Danbatta described spectrum trading as “spectrum management practice that permits transfer of Spectrum license Rights and obligations from one party to another in various forms and scope after a commercial transaction duly approved by the Commission.

“It is basically a secondary mechanism of assigning Spectrum with the capability of unlocking the potential of new technologies and reducing barriers to new entrants in the industry.’

According to the Senior Director Policy Engament Mr. Fraser Graham who shared insight into Global trend/ spectrum trading said “Nigeria will invariably benefit from spectrum trading as this will go a long way to aid investment in spectrum which has been a major source of interment for the government in the sector and it will upshot Foreign Direct investment.”

He noted that the implementation will ensure that the primary market is adequately utilized with efficiency inspectrum usage.”

“This has been adopted in United kingdom , Australia, India and it has worked for them. If this can be introduced with some checks and balances the industry will be better for it as there will be room fall small investor to take spectrum to under-served and unserved access areas for telecommunication coverage.”

Professor SAMA Nwana who spoke as an observer with verse experience okayed the timely intervention of the spectrum management policy from the regulator saying “it will invariable get rid of spectrum scarcity in the country.”

“Spectrum trading is now seen as a key step to be taken in the reform of spectrum management regulatory practice eliminating the artificial scarcities of spectrum which increases the prices of spectrum using services and the affects the competitiveness of different companies.

This will also create avenue for various forms of partnership that will ensure that spectrum is not left unused in any part of the country. We envisaged that this will bridge the access and service gaps currently existing in certain rural communities which today are either underserved or unserved,” he said.

NewswatchNigeria gathered that with the industry stakeholders’ convergence on the introduction of the spectrum trading will see the industry regulator introduce the policy by first quarter of 2017.

Director of Spectrum NCC< Austine Nolonne who spoke on the sideline with journalist on the objectives of the Commission’s Spectrum Management Policy with respect on the market circumstances said, “Use it, Lease it or Trade it” mechanism is adopted for further liberalization of the sector. When the available spectrum is currently used, the competitiveness of the market and the risk to investment and service quality as the market grows.

He added. “there will be some measure of control and command on the commercial activities among party operators doing spectrum trading to ensure “undue advantages are not taking and as well protect the market interest.”

Succinct to note that the Nigerian Communications Act (NCA) 2003 empowers the regulator to ensure Optimum utilization of Radio Spectrum for the provision of telecommunications service as well as provide an enabling environment for the growth and development of the telecoms industry for the benefits of the stakeholders and consumers of telecommunications services.