3G Backup Plan Prepared to Meet Budget Deficits

Like we all know that Government of Pakistan was desperately looking forward to auctioning 3G licenses to meet it’s budget deficits, however, informed sources claim that government may go with Plan B to meet budget deficits if 3G license auction doesn’t happen this year.

Earlier plan was to generate at least Rs. 75 billion through 3G auctioning, however, after resistance from industry and especially due to hurdles from Etisalat sources tell us that government may drop auction of 3G licenses till next suitable time or may directly move to 4G license auction but not earlier than next year.

During the while government plans to fill budget deficit through acquiring control of Universal Service Fund and R&D Fund money that is lying in banks. Though this plan is kept as a backup and primary efforts are still put together to sell 3G licenses.

If government regulates USF fund money and other funds to be moved to Federal Consolidated Fund then over Rs. 50 billion is likely to be moved from commercial banks to Federal treasury, informed us the sources.

This way government will be able to use the fund money for their operational needs and it can also keep disbursing funds to USF as per it’s requirements.

If government fails to sell 3G licenses this year then there are good chances that auction may not happen before 2013 mainly due to general elections next year. That’s exactly when agreement with Etisalat for not selling any new telecom license will expire.

It merits mentioning here that according to sale purchase agreement with Etisalat for 26 percent PTCL shares, government of Pakistan can’t sell any new telecom license till March 2013.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK

  • Etisalat is acting very ……….. for Pakistan.

    This act on their part is causing stagnation in Pakistan Telecomm Industry.

    I think its just a cheap tactic to shield the poor performance of their 2 subsidiaries PTCL & Ufone

  • Wimax is 4g and evdo is exactly 3g. These technologies will fill the gap. Like ptcl evo tabet you will soon see smartphones like HTC and Samsung and maybe even Apple iphone supporting evdo and wimax. Its only a matter of 6 to 9 months

  • A bad news indeed!

    @Junga ptcl is selling china made tablets. Dont expect any support for evdo or wimax any time soon from htc or iphone, they do not have a single office in Pakistan yet and they do not care about Pakistani market. We can expect any such support from samsung or nokia but still its just a dream.

  • Pakistani telecom industry is stalled, move to next generation is essential for the development of industry, without which it is surely going to stagnate :(

  • Well as far as i know there are two Teleco’s in Pakistan whose system is outdated and cannot support 3G and in order to make support they will have to switch to next generation systems which means to revamp all of their systems which will cost billions as well as loss of customers and etisalat is also a very close companion to those networks as well.

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