NCC released guidelines for trading of spectrum

The Nigerian Communications Commission (NCC), has released the guidelines for the trading of spectrum to facilitate the optimal use of Spectrum as well as to provide an enabling environment for the growth and development of the communications industry for the benefit of all stakeholders.

According to a document released by the NCC, the Commission also warned about the dangers of the players in the industry not following the guidelines as stated by the regulator.

The guidelines cover spectrum transactions envisaged under Spectrum Transfer, Spectrum Leasing and Spectrum Sharing, the Spectrum Trading will only be allowed between Licensees that comply with the criteria stated in these Guidelines.

The NCC stated that the Buyer must be a Licensee of the Commission, adding that “where an intending buyer does not have the requisite individual operating Licence that permits the deployment of access Spectrum, it will be required to obtain one before it can acquire the Spectrum.”

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The Guidelines stated further that the “Seller must have achieved at least 25% of the Roll-Out Obligation specified in the Spectrum Licence at the time of the trade. The Commission may conduct and rely on the result of field verification exercises and the most recent network information (as may be required like site Roll-out information and Quality of Service information) collected to establish the extent of roll-out achieved by the Seller.”

The regulator demands that both the Seller and Buyer must be in good regulatory and financial standing with the Commission consistently for a minimum of two years prior to the time of trading.

The Guidelines warns that “where in the considered opinion of the Commission, a transaction will negatively impact on competition and other regulatory considerations, the Commission may at its discretion conduct a Public or Private Inquiry in respect of an application for Spectrum Trading.”

The Guidelines which was signed by the Executive Chairman of the NCC, Prof Umar Danbatta warned that Licensees should not trade spectrum in areas where there is a Mobile Virtual Network Operator (MVNO) on its core network to avoid conflict of interest saying that the buyer should not be permitted to provide access to an MVNO on the spectrum being traded.

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However, the Commission said that commercial spectrum shall not be traded to companies providing combatant war robotics/drones for security purposes except with the express permission from the Office of the National Security Adviser.

And in the case of Spectrum Transfer, the NCC said that the buyer shall not be allowed to operate in only a given region and must operate traded spectrum in the entire licensed area adding that for Spectrum Leasing, the buyer and seller shall sign an Agreement containing all details of the Lease. The Agreement shall be approved by the Commission prior to commencement of the Lease.

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The Commission warned that where it is established at any time after the grant of approval that any of the Licensees, contrary to an undertaking submitted, is not in compliance with these Guidelines and/ or its Licence conditions at the time of approval, the Commission shall have the right to take appropriate action which may include among other things, the withdrawal of the approval.

It said that it has the right to cancel any approved Spectrum trade and/or impose further sanctions if it discovers any misrepresentation or collusion between a Buyer and a Seller that would negatively impact on competition and market structure.