Nigeria
The Nigerian Communications Commission (NCC) released a technical consultative document for the four new national licenses to offer second-generation (2G) cellular systems in Nigeria. Four licenses are to be issued to access Nigeria’s 120 million population market. The NCC sought comments from potential bidders on issues, including date of commencing network rollout, number of lines deployed in the first 12 months, number of lines deployed in the first five years, and the type of technology to be used-GSM or CDMA. The intended timetable for the allocation of licenses by means of an auction is mid-November to pre-qualify for the auction and November to December for the auction and granting of licenses. NCC has benchmarked all interested bidders on a US$100 million license reserve price. Industry experts believe the licenses’ bid prices could increase to US$1 billion. In addition, Radio Spectrum International (RSI), headquartered in the United Kingdom, was appointed principal adviser by the NCC to develop and manage the auction.
South Africa
South Africa Communications Minister Ivy Matsepe-Casaburri may soon award the third cellular license, after Nextcom, one of the losing bidders, abandoned an interdict granted against the minister. The interdict prevented the minister from awarding the license pending a judicial review of the tender process. It is alleged an out-of-court settlement between Nextcom and the winning bidder, Cell C, was reached. Under terms of the agreement, the empowerment partners of Nextcom reportedly would take a percentage share of Cell C. In return, Nextcom would abandon the interdict.
The Independent Communications Authority of South Africa (ICASA) ruled it cannot grant 1800 MHz spectrum to existing licensees Vodacom and MTN. Relinquishing the 2-by-2 megahertz of 900 MHz spectrum by the existing licensees also is not necessary, the agency said. The Council said new upgradeable solutions could resolve alleged congestion problems experienced by the existing licensees. On 28 August, ICASA had proposed amending the licenses of Vodacom and MTN so they would relinquish the 900 MHz radio-frequency spectrum in exchange for an RF assignment of 2-by-10 megahertz in the 1800 MHz band. The regulatory agency had invited oral and written representations from interested parties. Oral hearings were held on 18 and 19 October with representation from various industry groups. At press time, Vodacom said it planned to pursue legal action against ICASA, saying the agency had been influenced by outside parties before its decision was handed down.
