The Nigerian 3500 MHz Spectrum Auction
A review of the NCC’s 3500 MHz spectrum auction and the learning for other regulators seeking to award spectrum to support the development of mobile broadband and 5G.
The history of mobile spectrum allocation in Africa has been fraught with challenges, notably in the execution of regulator-led auctions. However, recent instances have earned industry acclaim. Notably, the Tanzanian Communications Regulatory Authority’s (TCRA) 2018 allocation of 700 MHz spectrum and the Nigerian Communication Commission’s (NCC) successful auction of 3500 MHz spectrum have garnered positive attention for their transparency, simplicity, and professional execution.
This paper presents a detailed review of the Nigerian auction. It highlights its commendable aspects while addressing key concerns and future challenges. Reserve price selection emerges as a critical factor in this analysis, shaping the success of such endeavours in the African context. Coleago, involved with a winning bidder in the Nigerian auction, offers valuable insights into these processes, aiming to aid regulators in devising effective spectrum award methodologies.
Highlighted Positive Aspects
- Clear and straightforward pre-qualification criteria encouraged wider participation
- Recognition that overly high auction prices conflict with demanding coverage obligations, although a balance is sought between economic welfare and obligations
- Appropriately designed auction structure, with some reservations about its sequential nature
- Well-articulated and comprehensive information memorandum (IM)
- Timelines, though tight, were manageable, albeit a slightly extended period would have been preferable
- Efficient execution facilitated by an electronic platform
Key Concerns and Challenges
- The sequential nature of the award process led to substitution and exposure risks, complicating bidding strategies
- The pivotal concern revolves around setting the reserve price in the subsequent auction based on the first auction’s achieved price, potentially influencing its success significantly
Critical Analysis
While acknowledging the auction’s notable strengths, particularly in design and execution, substantial concerns about its sequential nature and reserve price strategies emerge as significant challenges for future spectrum auctions.
Recommendations
- Consider revising the sequential nature of auctions to mitigate bidding strategy complexities
- Reevaluate reserve price strategies to ensure broader participation and improve the likelihood of success in subsequent auctions
Conclusion
The Nigerian 3.5 GHz auction displayed admirable qualities yet faces significant hurdles, primarily tied to its sequential design and reserve price determination. Addressing these concerns could be pivotal in enhancing the efficacy of future spectrum auctions in Africa.
This summary encapsulates the salient aspects, merits, concerns, and recommendations derived from the Nigerian 3.5 GHz spectrum auction, aiming to provide regulators and stakeholders with comprehensive insights for future spectrum allocation processes.
Other insights
Satellite Connectivity and the Operator Challenge
The rapid expansion of low earth orbit satellite constellations and the emergence of direct-to-device connectivity are creating one of the most significant strategic challenges the mobile industry has faced in decades. Satellite operators are evolving from niche providers serving remote areas into potentially powerful competitors capable of delivering broadband and mobile connectivity directly to consumer devices independently of terrestrial infrastructure. Coleago examines the commercial, strategic and regulatory implications of this shift from the perspective of mobile network operators.
Satellite Services and Regulatory Challenges
The rapid emergence of Low Earth Orbit (LEO) satellite constellations and direct-to-device (D2D) technologies is reshaping the communications landscape. Satellite systems are evolving from niche, complementary solutions into mainstream providers of broadband and mobile connectivity, capable of connecting directly to smartphones without intermediary infrastructure. Convergence between satellite and terrestrial mobile networks raises profound regulatory, economic and competitive questions for policymakers worldwide.
Insights from the Pakistan 2026 Multi-Band Spectrum Auction
Pakistan’s 2026 spectrum auction released unprecedented volumes of spectrum. This Insight provides an insider perspective on the multi-band award, drawing on Coleago’s direct involvement in supporting a successful bidder, and explores the auction design, bidding dynamics and key lessons for regulators.
Spectrum Renewal: A Framework for Spectrum Valuation and Pricing
Mobile connectivity supports economic development, social participation and digital innovation across every modern economy. Yet the performance and resilience of this ecosystem depend on a scarce national asset – radio spectrum. As many countries approach key licence renewal milestones for the original IMT 4G spectrum bands that were issued 10 to 20 years ago, the question of how to value spectrum and how to determine an appropriate renewal price takes on increasing importance in the case where the spectrum is being renewed via an administrative or hybrid auction process.
Leveraging Terrestrial Mobile Spectrum for D2D capacity
This article was first published in the GTPRN 2026 Newsletter, February 2026. It provides a fresh perspective on the merits of leveraging terrestrial mobile spectrum for D2D capacity. Terrestrial mobile spectrum could be used to substantially increase D2D capacity precisely where it is needed the most given that in 90% of the globe’s surface there is no shortage of spectrum.
Navigating Spectrum Licence Renewal: Lessons from Australia
Australia’s spectrum licence renewal process shows how operators can align regulatory engagement with commercial strategy. This case study highlights Coleago’s role in helping Optus secure optimal outcomes, from evidence-based submissions to spectrum planning for 5G and 6G.