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Stakeholders applaud as secondary market of spectrum begins

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Olusola Teniola, president of ATCON

There is excitement among telecommunications stakeholders as the process of secondary spectrum market begins in the sector, Nigeria CommunicationsWeek has learnt.

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 to Nigeria CommunicationsWeek 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.


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