The Communications Regulatory Authority of Namibia (CRAN) has lowered requirements for the 5G spectrum re-auctioning, following the unsuccessful initial bidding in May.
The adjustments aim to address the challenges faced by operators and encourage their participation in the implementation of the 5G spectrum across the country.
“The stringent rollout obligations are a major hurdle for potential bidders. Particularly in rural areas, where coverage falls below 80%, the return on investment was deemed too long, making the business cases unfeasible,” Telecom Namibia Chief Executive Officer (CEO) Stanley Shanapinda said on Thursday, citing the shortcomings of the original bid.
The CEO said CRAN is aiming to improve 4G coverage in regions where it currently falls below 80% and bidders need to showcase how they can do this.
“These areas, such as Zambezi and Kunene, have population coverage ranging from 41% to 77%. To obtain the 5G spectrum in these regions, operators are required to submit a business case demonstrating their plan to increase coverage to at least 80%. This will involve deploying new base stations and expanding network infrastructure over the next three to four years,” he explained.
In response to these concerns, Shanapinda said CRAN then revised the bidding requirements for the re-auctioning.
“The most significant change allows operators to bid for two regions instead of the previous obligation to roll out in all six regions. This adjustment is expected to reduce costs and distribute the rollout obligations more evenly among participants, facilitating a more sustainable investment environment,” he said.
The Telecom CEO noted that by reducing the burden on operators and providing greater flexibility, the revised bidding structure aims to attract more participation and foster the successful implementation of 5G technology.
“There will be three lots of spectrum allocated, three winners, and everyone will have two regions where they will now need to roll out as opposed to six regions for everyone. As a result, the cost is reduced and the obligations are distributed amongst all of us. So, that’s one of the key things we’re working on now,” Shanapinda said.
This comes as CRAN CEO Emilia Nghikembua told The Brief that the first round of bids concluded in May 2023, were non-responsive, hence, the need to re-auction.
“A new bid document was issued on 28 June 2023. We wish to clarify, however, that the objective of the auction is not revenue generation, but universal connectivity i.e., to increase population coverage, especially in rural areas that have coverage below 80%.
The auction is also designed to enable technological innovation, and operators are required to formulate 5G use cases specifically in areas such as education, health and agriculture,” she said.
