Telecommunication regulator, the Nigerian Communications Commission (NCC) has indefinitely suspended trading of spectrum in the Nigerian telecommunications industry, this www.newswatchnigeria.com can report.
Though the application for Spectrum Trading in the Nigeria telecoms sector was approved barely 24 months ago, but the industry regulator has now suspended the guidelines because it is obsolete and deem for urgent review.
A statement signed by the Director, Public Affairs of the Commission, Dr. Henry Nkemadu stated that the regulatory commission urged all licensed telecommunications operators, prospective investors, industry stakeholders and the general public to take note.
The decision for a suspension and review if deemed fit, was in response to telecommunications global dynamics as well as efforts to optimally utilize and maximize the benefits of the Spectrum scarce resource in the country.
Spectrum is a scarce commodity which when inefficiently utilized greatly limits broadband coverage and speeds.
Recall that the current Spectrum Trading Guidelines were developed in 2018 after industry-wide consultations and this instrument allows that the Spectrum resource be traded on the Secondary Market through Transfer, Sharing or Leasing upon satisfying stipulated regulatory conditions.
The Nigerian National Broadband Plan (NNBP) 2020 – 2025 launched by President Muhammadu Buhari, in Abuja in March 2020 requires that these Guidelines be reviewed to ensure that unutilized Spectrum is fairly traded and to facilitate roll out by other operators among others.
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This is to address the need for ubiquitous broadband deployment to accelerate penetration and access in line with the economic Agenda of the Federal Government.
‘‘In accordance with the NNBP 2020 – 2025, for optimal use of spectrum, licensees have the obligation of the Use it or Lose It Policy because idle high demand spectrum does a disservice to poorly served populations and should be released for effective use as may be required to Promote Efficient Use of assigned Spectrum.’’
‘‘The ‘Use it or Lose it’ rule should, therefore, apply in all instances where assigned spectrum is found to be non-utilized or underutilized and ensures unutilised spectrum is fairly traded to facilitate rollout by other operators.
‘‘In response to the need for the review of these Guidelines as highlighted above, and also following Paragraph 12 of the Spectrum Trading Guidelines, 2018 which vests the Commission with the right to review/vary and modify these Guidelines from time to time as it may deem fit, the Spectrum Trading Guidelines 2018 application in Nigeria is hereby suspended until further notice, as declared by the Board,’’ it added.
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