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Following the unsuccessful initial bidding, the Communications Regulatory Authority of Namibia (CRAN) has lowered requirements for the 5G spectrum re-auctioning.
The adjustments aim to relieve the challenges faced by operators and encourage participation in the implementation of the 5G spectrum across Namibia.
Following the unsuccessful initial bidding, the Communications Regulatory Authority of Namibia (CRAN) has lowered requirements for the 5G spectrum re-auctioning.
The adjustments aim to relieve the challenges faced by operators and encourage participation in the implementation of the 5G spectrum across Namibia.
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. 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. To address these challenges CRAN 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. 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, stated Telecom Namibia Chief Executive Officer (CEO) Stanley Shanapinda.
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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. 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
