Nigerian Communications Commission lifts suspension of spectrum trading guidelines

In a significant move last week, the Nigerian Communications Commission (NCC) lifted the suspension on the Spectrum Trading Guidelines of 2018, pending the completion of an ongoing review of the guidelines. This development has raised key discussions within the telecommunications sector, particularly regarding the access to and utilization of spectrum by key players in the industry. To shed light on these developments and provide insights into the implications for the telecom space in Nigeria, Olusola Teniola, President of the Association of Telecommunications Companies of Nigeria (ATCON), shared his perspectives in an interview with CNBC Africa. The spectrum trading guidelines introduced in 2018 aimed to address the challenges in the allocation and utilization of spectrum for broadband networks and data services. Prior to the introduction of the guidelines, the allocated spectrum was primarily suitable for voice communication, creating a need for larger bandwidth to support data services. The secondary spectrum trading provided an avenue to facilitate the exchange of idle spectrum among operators, enhancing network capabilities and coverage. However, despite the existence of spectrum trading, there are concerns over the transparency and enforcement of policies such as the 'use it or lose it' rule. The review of the guidelines by the Nigerian government underscores the importance of ensuring equitable access to spectrum and promoting wider coverage to meet the targets set in the National Nigerian Urban Plan of 2020-2025. The discussion also highlighted the critical role of spectrum in supporting industrialization and meeting the capacity requirements for a country with a population nearing 200 million. The surge in demand for spectrum during the COVID-19 pandemic underscored the need for additional bandwidth to sustain network operations and cater to increased data consumption. The availability of spectrum at affordable rates is crucial to prevent arbitrage and promote the effective utilization of spectrum resources. As Nigeria progresses towards the deployment of 5G technology, the strategic allocation of spectrum, including mmWave and sub-6 GHz bands, will play a vital role in enabling advanced digital services. In comparison to regulatory challenges faced in other markets such as Ghana, Nigeria has made strides in addressing issues related to voice services and retail regulations. However, the focus is now shifting towards ensuring equity in spectrum ownership and facilitating the transition to 5G networks. The need for a balanced spectrum allocation strategy, akin to the approach adopted by the Federal Communications Commission (FCC) in the United States, is essential to promote competition, universal service access, and rural connectivity. The current landscape in Nigeria reflects a disparity in spectrum utilization between urban and rural areas, signaling a need for strategic policies to incentivize operators to extend coverage to underserved regions. Overall, the lifting of the spectrum trading guidelines suspension marks a pivotal moment in Nigeria's telecom sector, paving the way for enhanced collaboration, innovation, and expansion in the digital landscape.