Fresh Facts Behind Frequency Spectrum Sale Saga

WHILE it seems there is total calm over the controversial sale of the 900MHz spectrum and 700MHz to Jim Ovia and Mike Adenuga companies by the Nigerian Communications Commission after a directive by former President Goodluck Jonathan, fresh investigations have unraveled the behind the scene deals of the exercise.

There are indications that the Ministry of Communications Technology and the Nigerian Communications Commission, NCC may not have played an indicting role in the recent sale of the 900MHz spectrum and 700MHz to Jim Ovia and Mike Adenuga by the Federal Government few months before the expiration of tenure of former President Goodluck Jonathan.

Investigations revealed that there was no reason for some stakeholders in the industry to assume that both government organisations played a fraudulent in by-passing the laid down due process for the sale of both spectrum, which are government properties.

Our source, who is close to the presidency then disclosed that although it was for government not to have allowed due process to be followed in the sale of spectrum as it has been done in the past said that the former president merely exercised his prerogative, which the constitution allows.

While commenting on the return of Ovia’s spectrum, the source said that what transpired between the NCC and Cyberspace following the directive of the former president had no element of fraud.

According him, it was a transaction, and money was paid into government account stressing that when Cyberspace decided to return the spectrum, when it discovered it had no need of it, it did not get a full refund.

The source stated that details of the financial transactions between the NCC as the custodian of the spectrum and Cyberspace are with the relevant government agencies for anyone to verify.

It was recently reported by an online media that former President Goodluck Jonathan “secretly” awarded the highly lucrative “digital dividend” frequency spectrum to Mike Adenuga’s Globacom and Jim Ovia’s Cyberspace without allowing the NCC to carry out its function as custodian of the spectrum on behalf of government.

It was gathered that the presidency did not allow the NCC to carry out its statutory function with regard to the sale of the spectrum but had gave directive that both spectrum be sold to the two businessmen.

It is traditional in the NCC to often engage stakeholders in the industry whenever there is a spectrum for sale as was the case of the frequency licensing for the 70/80GHz spectrum bands.

And in March 2015, the NCC in Lagos held a consultative forum with industry stakeholders on the viability of the auction where discussions on modalities for the auctioning was unveiled and stakeholders were able to make their input.

Also the NCC had in the first few months of the year engaged stakeholders on the modalities for the auction of the 2.6GHz, which had suffered three postponements.

 Although there were no official explanation for the postponement, it was however gathered that the regulator wants to avoid the mistake of the past as was the case in 2001 after the Digital Mobile Licence, DML, auction, Communication Investment Ltd, CIL, wherein one of the winners did not pay for the licence because the frequency allocated to CIL was believed to be encumbered and it lost the licence and the deposit for same.

A telecom expert who pleaded not to be quoted stated that the NCC may not have erred in selling the frequency spectrum without going through the traditional procedure, which had followed in the past saying that the NCC is just a custodian of the spectrum for government who is actually the owner.

According to him, the transaction that resulted in  Adenuga and Ovia parting with money to take possession of the spectrum was out even an outright sale but a least stressing that government can take it back whenever it desire.

However, President of the Nigerian Internet Group, NIG, Engr. Bayo Banjo said that there is no law that gives the president the power to by-pass due that has already been established by another.

According to him, what the former president did was part of the overbearing influence of government in the management of the NCC, which has resulted to several illegalities at the NCC.

Asked if the board of the NCC was in position to decline the directive of the former president, Banjo said that when a former commissioner at the NCC queried some of such illegalities, government found it uncomfortable, and therefore sacked him.

He disclosed since there is a president, the regulation could request that the sale of the spectrum frequency be reversed and allowed to followed due process as required by law.

“The NCC could just ask the new president, I hope there would not be any objection if we go ahead to revoke the sale of the frequency spectrum, just to satisfy political concern because sometimes actions are not solely base on law. There are also political concerns”, he said.

He said: “If the illegality committed by the companies that bought the frequency spectrum is too glaring they should be shut-down by the appropriate body. That is the real truth. The NCC will tell them that it is illegally obtained and that they are withdrawing the license and then maybe allowed the same companies to bid for the same spectrum frequency by following the due process.”

Banjo explained further that it is the new president that will give the directive on the reversal of the sale of the frequency spectrum and that the due process is followed saying “there is no law that says that the president has the right to sell out the frequency spectrum without the NCC following the due process as stated by law.”

On the return of the spectrum bought by Jim Ovia, it was gathered that it was not base on public outcry over the illegal sale of the spectrum to his company, Cyberspace.

Head, Corporate Affairs, Visafone, Mr. Joseph Ushighiale confirmed that before the purchase of the spectrum by Cyberspace, Jim Ovia had been in discussion with some Chinese businessmen to float a broadband internet service business.

He said that when he finally broke the news of the purchased spectrum to his Chinese business partners and upon careful study of the capacity of the spectrum concluded that it did not meet the requirement of their business plan.

A source, who had knowledge of Ovia’s business relationship with the Chinese businessmen confirmed that the proposed broadband internet service provider was actually intended to put the present internet service providers whose services was below expectations on their toes.