The price of spectrum (excluding microwave frequencies) is calculated on an annual per state basis using the following formula;
Spectrum Fee = (U) × (B) × (K1) × (K2) per State
Where;
- U = Unit Price: This varies according to Licensing Region/Tier of the State in which the applicant seeks to operate.
Tier State(s) Prize (MHz/Year) Tier 1 Lagos 3,000,000 Tier 2 Delta; Federal Capital Territory, Abuja; Kaduna; Kano; and Rivers. 1,500,000 Tier 3 Abia; Anambra; Edo; Ogun; and Oyo. 1,200,000 Tier 4 Akwa Ibom; Bauchi; Bayelsa; Benue; Borno; Cross River; Enugu; Imo; Kogi; Kwara, Niger; Ondo; Osun; and Plateau. 600,000 Tier 5 Adamawa; Ebonyi; Ekiti; Gombe; Jigawa; Katsina; Kebbi; Nassarawa; Sokoto; Taraba; Yobe; and Zamfara. 300,000
- B = Assigned Bandwidth (Spectrum Size) in MHz
- K1 = Band Factor
- 1.0 for 3.5 GHz Band
- 1.6 for 1.8/1.9 GHz Band
- 1.4 for 800/900 MHz Band
- 1.2 for 2.0 – 2.5 GHz Band
- 0.33 for 10.5 GHz Band
- 0.12 for 26 GHz
- 2.0 for 450 MHz
- 0.5 for 5.0 GHz
- K2 = Tenure Duration Factor
- 0.3 for 3 months
- 1.0 for a 1 year License
- 4.0 for a 5 year License (Standard)
- 7.2 for a 10 year License
- 10.4 for a 15 year License
Duplex/Simplex
For simplex channel, unit price per State will be half of equivalent duplex channel.