NATIONAL COMMUNICATIONS AUTHORITY BROADBAND WIRELESS ACCESS (BWA) LICENSES IN THE 2500MHz – 2690MHz BAND SELECTION AND AWARD PROCEDURE OCTOBER 2011 NATIONAL COMMUNICATIONS AUTHORITY REQUEST FOR APPLICATIONS 1. The NATIONAL COMMUNICATIONS AUTHORITY (“AUTHORITY’) invites applications from eligible Entities registered under the Ghana Companies Code, 1963, Act 179 for the grant of a license to establish, maintain and operate Broadband Wireless Access (BWA) Services in the 2500MHz – 2690 MHz band. 2. The Applicant(s) for the BWA Services should possess Certificate of Incorporation, Certificate to Commence Business and Company Regulations from the Registrar General’s Department as well as hold an up to date Certificate of Income Tax where applicable. Copies of the afore-mentioned Certificates should be submitted with the proposal/offer. 3. The Selection and Award Procedure Document can be accessed on the Authority’s website: www.nca.org.gh. 4. All applications duly sealed are to be submitted into a tender box kept at the Director General’s Secretariat and addressed to: The Director General National Communications Authority 1st Rangoon Close Cantonments, Accra on or before 5pm hrs on 7 December 2011. The sealed application(s) will be opened by representatives of the Authority at 5:30pm in the Boardroom of the Authority on the same day and in the presence of the Applicant(s) who are present. Applications shall not be received after the above stipulated deadline. 5. The Authority intends to issue a total of up to four (4) Spectrum Licenses for BWA Services, as per the Selection and Award Procedure for Licenses, in the 2500MHz – 2690MHz Band; to be awarded as follows: a. Two (2) slots of 30MHz blocks nationwide for operators using technologies that require unpaired spectrum for a 10-year period. b. Two (2) slots of 2x15 MHz blocks nationwide for operators using technologies that require paired spectrum for a 10-year period. Page | ii Request for Application – BWA Licenses in the 2500 – 2690 MHz Band_2011 c. There shall be an extra paired 2x5MHz and an extra contiguous unpaired 15 MHz available to winners of the spectrum blocks in a. and b. above through negotiations with the Authority. d. Applicants shall clearly indicate what spectrum configuration they prefer i.e. Unpaired or Paired. e. Furthermore, applicants shall indicate their interest or otherwise in a negotiated channel, as specified in d. above. 6. All applications shall be accompanied by a non-refundable application fee of Fifty Thousand United States Dollars (US$50,000.00). 7. Any Applicant may communicate for clarification on the subject in writing to the DIRECTOR GENERAL, NATIONAL COMMUNICATIONS AUTHORITY, on or before 5pm on 23rd November 2011. An electronic copy should be sent to [email protected]. Page | iii Request for Application – BWA Licenses in the 2500 – 2690 MHz Band_2011 Table of Contents REQUEST FOR APPLICATIONS ...........................................................................ii Table of Contents ............................................................................................ iv CHAPTER 1 .................................................................................................. 1 1.1. GENERAL INFORMATION ........................................................................ 1 1.2. OVERVIEW OF THE EXISTING TELECOMMUNICATIONS MARKET...................... 2 1.2.1 Fixed and Mobile Telephony Market .............................................................................................. 2 1.2.2 Broadband Access Market ......................................................................................................... 4 1.2.2.1 Internet/Broadband Penetration .................................................................................................... 4 1.2.2.2 Broadband Costs ........................................................................................................................... 4 1.2.3 National Communications Infrastructure ......................................................................................... 5 1.2.4 Co-location Initiatives ...................................................................................................................... 5 1.3 INTERPRETATION AND DEFINITIONS ................................................................................ 6 CHAPTER 2 ................................................................................................. 7 2.1 KEY NATIONAL OBJECTIVES................................................................................................. 7 2.2 RATIONALE FOR LICENSING SPECTRUM IN THE 2500MHz – 2690MHz BAND.................... 8 2.3 TECHNICAL DESCRIPTION OF THE 2500MHz – 2690MHz BAND ................................... 9 2.4 EXISTING USERS OF THE 2500MHz -2690MHz BAND ..................................................... 10 2.4.1 SPECTRUM BAND PLAN....................................................................................................... 10 2.5 EXPECTED USE OF FREQUENCY BAND (SCOPE OF LICENCE) ..................................... 12 2.6 THE SPECTRUM LICENCES ................................................................................................. 12 CHAPTER 3 ................................................................................................14 3.1. ELIGIBILITY ............................................................................................................................ 14 3.2. SELECTION PROCESS ........................................................................................................... 14 Page | iv Request for Application – BWA Licenses in the 2500 – 2690 MHz Band_2011 3.3. STAGE ONE: PRE-QUALIFICATION (ADMINISTRATIVE) ..................................14 3.4. STAGE TWO: TECHNICAL-OPERATIONAL-MANAGERIAL ASSESSMENT .................. 15 3.5 STAGE THREE: FINANCIAL NEGOTIATIONS ................................................................... 15 3.6 FURTHER RULES .................................................................................................................. 15 3.7 TIMETABLE ............................................................................................................................ 16 CHAPTER 4 ................................................................................................18 4.1 CONTENTS OF THE PROPOSAL .......................................................................................... 18 4.2 SUBMISSION OF PROPOSALS .............................................................................................. 19 4.3 UPDATING .............................................................................................................................. 20 4.4 MODIFICATION ..................................................................................................................... 20 4.5 DISCLAIMER .......................................................................................................................... 20 4.6 ADDITIONAL INFORMATION ............................................................................................. 20 ANNEX 1 ....................................................................................................21 INTERPRETATIONS AND DEFINITIONS ..........................................................21 ANNEX 2 ...................................................................................................22 SAMPLE LETTER OF PRESENTATION .................................................................22 ANNEX 3 ....................................................................................................23 STANDARDIZED APPLICATION GUIDELINES .......................................................23 ANNEX 4 ...................................................................................................26 GUIDELINES FOR SUBMISSION OF FEASIBILITY REPORT FOR TELECOMMUNICATIONS PROJECTS ..................................................................................................26 ANNEX 5 ...................................................................................................28 LICENCE FEE, CHARGES & OTHER OBLIGATIONS .................................................28 ANNEX 6 ...................................................................................................29 Page | v Request for Application – BWA Licenses in the 2500 – 2690 MHz Band_2011 ROLL-OUT CONDITIONS ................................................................................29 ANNEX 7 ....................................................................................................37 SPECTRUM PLAN FOR THE 2500 – 2690 MHZ BAND ...............................................37 Page | vi Request for Application – BWA Licenses in the 2500 – 2690 MHz Band_2011 CHAPTER 1 1.1. GENERAL INFORMATION The NATIONAL COMMUNICATIONS AUTHORITY (AUTHORITY) is empowered under Section 3(c) of NCA Act 769 of 2008 (''The Act") to issue Licenses for the operation and provision of communication services, and to determine the eligibility criteria of applicants for the said licenses. Having given due consideration to the principles of transparency, fairness, non-discrimination and all other relevant principles, the AUTHORITY has decided to issue procedures, guidelines and criteria for the selection and award of spectrum licenses in the 2500MHz – 2690MHz band to qualified applicants for Broadband Wireless Access (BWA) services. Presently, the principal legal statutes governing