The Pakistan Telecommunication Authority (PTA) had offered 3 bands for the 3G spectrum – with a complete obtainable frequency of 30MHz – and 2 bands for the 4G spectrum.
Out of the four competitors taking part within the auction, solely Zong managed to secure licences for each 3G and 4G spectrums; the opposite 3 – Mobilink, Telenor and Ufone – secured solely 3G licences.
While the PTA managed to sell all 3 bands of the 3G spectrum on provide, it might solely sell one 4G licence once Ufone – the sole different bidder for the spectrum – was disqualified on technical grounds.
The $1.112 billion that the country has attained from the sale is simply $17 million or one.6% more than the reserve value of $1.095 billion for these licences. The $210 million on account of the unsold 4G licence is excluded from calculations.
“But certainly, can|it'll} introduce Associate in Nursing era within which the country’s youth will have accesses to fashionable telecommunication services and make thousands of recent jobs,” aforementioned Minister of State for info Technology (IT) Anusha Rahman.
After the last spherical of bidding, PTA Chairman Dr Ismail monarch declared “all spectrums in 2100MHz (3G) are oversubscribed.”
“But we tend to might solely sell one licence in 1800MHz (4G) as Ufone was unable to qualify,” he said.
Shah explained that a bidder solely qualified to bid for the 4G spectrum once winning a minimum 10MHz within the 3G spectrum. He aforementioned that despite bidding for 15MHz within the 3G spectrum, Ufone might solely win 5MHz.
CMPAK restricted, higher called Zong, bid the best – $306.9 million – for a 3G licence within the 10MHz band, creating it eligible for obtaining a 4G licence at a base value of $210 million.The base value for 3G was set at $295 million.
Of the entire $1.112 billion attained by the govt, Zong – that is fourth largest among Pakistan’s 5 existing telecommunication players – paid $516.92 million for the 2 licences.
“Zong is extremely excited for turning into the sole party to win each 3G and 4G frequencies and can roll out the services at a quick pace,” aforementioned Sikandar Naqi, the consultant to the chief military officer of Zong.
While Mobilink – the most important telecommunication player within the country with twenty ninth market share – conjointly won a licence within the 10MHz band, it opted against bidding for a 4G licence.
The final 10MHz band was divided into 2 5MHz slots, one among that was won by each Telenor and Ufone every.
Mobilink paid $300.9 million for a 3G licence in 10MHz, creating it the second highest bidder. Telenor and Ufone, however, got 3G licences at base value, making suspicions of collusion. Ufone, by selecting to bid for 15MHz, had conjointly forced PTA to interrupt one 10MHz band into 2.
Meanwhile, the PTA chairman aforementioned the choice to sell the last 4G licence are taken presently.
“PTA’s call to not permit Ufone to bid for a 4G licence once it did not fulfill the necessity was an honest decision… it ensured that the method remained clear,” minister Ishaq Dar aforementioned whereas speaking at a group discussion once the auction.
Asked whether or not the PTA can forfeit the cash deposited by Ufone once the telecommunication operator won but it had bid for, Dar aforementioned the choice are taken once receiving input from the law ministry.
‘Govt attained quite it expected’
Talking to reporters, the minister aforementioned the govt had attained quite it had at first calculable.
He aforementioned the govt might still earn a minimum of Rs50 billion additional from the last remaining 4G licence, additionally to the Rs111 billion it had attained from the sale already. an extra licence is additionally being unbroken for a brand new entrant, he added.
Dar aforementioned the govt, by with success conducting the auction, has established that it's the power to meet the guarantees it's created to the state. He aforementioned the introduction of recent telecommunication technologies can produce many thousands of recent jobs.
The minister hinted at giving tax relief to users of telecommunication services, however aforementioned a judgment are taken within the forthcoming budget.
On issue of YouTube, he aforementioned additionally to the Supreme Court’s directives for keeping the video-sharing portal blocked till the removal of blasphemous material, Prime Minister Nawaz Sharif has conjointly directed PTA to get rid of videos showing porno and mutilated bodies of security personnel.
Published within the specific apsis, April 24th, 2014.
