Stakeholders in the telecommunications industry have applauded the commencement of the process of secondary spectrum market.
The board of Nigerian Communications Commission (NCC) had in first quarter of this year approved the commencement of spectrum trading also known as secondary spectrum market in the telecommunications sector of the economy.
In effect, the market has begun with some operators presently selling their spectrum to others operators that are in need of such spectrum for use.
Affirming this development, Engr. Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), who confirmed this said: “I can confirm to you that secondary market of spectrum has started, I won’t disclose to the media the operators that are currently selling and buying from one another because of the sensitive nature of the business”.
He explained that spectrum trading is to the benefit of consumers who are provided with access where it is previously not available.
“There are some areas in the country without telecommunications services because operators that has the spectrum don’t want to deploy service in those areas, but with spectrum trading operators willing to deploy services to such areas can buy spectrum from that operator and give access to the area. This makes allocation of spectrum more efficient,” he said.
He added that a typical transaction at the market could be consummated through application in response to a private advertisement of the intent to sale, after which negotiation is done with NCC monitoring the transaction that will enable them to transmit the spectrum from the former owner to the new operator of the spectrum.
He noted that last mile access is very important in the deployment of Internet of Things and other technologies and that if spectrum allocation is done efficiently it will allow the roll out of such services.
“We are happy as an industry that spectrum trading is now a reality. Cost of spectrum has been a major factor in deployment of access in the country. While western countries are bothered about speed of internet, Nigeria has a peculiar problem of access with 192 market gap comprising of underserve and unserved communities. There is a problem of how do we give access to these communities, allocating spectrum efficiently will speed up the process of giving them access,” he added.
Engr. Lanre Ajayi, managing director, Pinet Informatics and immediate past president of Association of Telecommunications Companies of Nigeria (ATCON) who was the first to advocate for spectrum trading commended NCC for listening to stakeholders’ advocacy in the implementation of secondary market of spectrum in the industry.
He said that some operators in the industry have spectrum they paid for but are not using it, while some operators want to deploy services in some areas but does not have spectrum due to high cost or the process. “Why don’t we match them together to the benefit of consumers that will have access and services?
“The commencement of implementation of secondary market of spectrum is a welcome development. Spectrum is generally designated for specific applications where we have spectrum for television, radio and broadband. In spectrum trading, market forces should determine the transactions; NCC’s role should be in compliance which is how to use it,” he noted. – Nigeria Comms Weekly.
