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GSMA sees $197.4m benchmark for spectrum as out of reach

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The Global System for Mobile Communications Association (GSMA), a leading industry watchdog has viewed the touted Federal Government’s benchmark per slot of the Auction of 3.5 Ghz Spectrum pegged at about $197.4m as very high.

The association said the $197.4m benchmark for spectrum auction was high, and might affect the actual rollout of the 5G network. According to GSMA, the NCC had first disclosed this in its ‘Nigerian National Broadband Plan 2020 – 2025.’  The association added that the reserve price for the 5G spectrum ($197.4m) was not reflective of what the broadband hopes to achieve. GSMA said, “The reserve price does not reflect the principles of the Nigerian National Broadband Plan 2020 – 2025 (NNBP). “The NNBP highlights that one of the major investment categories to achieve the plan can include 5G roll out for top 10 cities, with an estimated 6000 base stations to be deployed at a cost of up to $500m.

Besides, GSMA added that $500m and 6000 base stations are needed for 5G rollout in the top 10 cities in Nigeria. The telecom industry umbrella organisation with more than 750 mobile operators as members disclosed this in its comment to the Nigerian Communications Commission on its ‘Draft Information Memorandum for the Auction of 3.5 Ghz Spectrum.’

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