The Nigerian Communications Commission's spectrum pricing policy is targeted toward achieving the following objectives as set out in the Frequency Spectrum (Fees & Pricing) Regulations of 2004 (Amended 2009).
- Establish a transparent, fair, competitive and non-discriminatory pricing structure that include, but not limited to, auctions, "beauty contest" and other internationally accepted methods of bidding for the acquisition of frequency spectrum;
- Standardise frequency spectrum fees and pricing system in order to promote uniformity, consistency and efficiency in spectrum management in Nigeria in conformity with international standards;
- Ensure that the prices reflect the market value and are directly proportional to frequency spectrum size;
- Promote efficiency and competition in the usage of frequency spectrum;
- Facilitate access to frequency spectrum by simplifying and harmonising the electronic magnetic wave spectrum pricing process; and
- To achieve government policy objectives of even development of telecommunications infrastructure across Nigeria and the universal service goals.
Please see below for the pricing formulas for Commercial Frequency Spectrum and Microwave Frequency Spectrum respectively;
Commercial Frequency Spectrum
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|
|U||=||Unit Price: This varies according to Licensing Region/Tier of the State in which the applicant seeks to operate.
|B||=||Assigned Bandwidth (Spectrum Size) in MHz|
|K2||=||Tenure Duration Factor
For simplex channel, unit price per State will be half of equivalent duplex channel.