3G Auction in Pakistan on March 29th

PTA-logo (2)Pakistan will auction third generation telecom licenses on March 29th, 2012 with each licenses to be base priced at USD 210 million and auctioned through bidding, reported Reuters citing Dr. Muhammad Yasin, Chairman Pakistan Telecommunication Authority.

Revealing preliminary details about the 3G license auction, Mr. Yasin said that the amount bidders will have to deposit with initial expressions of interest – to indicate the seriousness of a bid – would be $31.5 million and license terms would be from eight to 15 years.

Chairman PTA expects to attract at least 10 to 15 potential investors for initial bidding process. For the purpose, PTA is undergoing investors’ conferences in Islamabad and Karachi.

Dr. Yasin, further detailing the auction procedures, noted that existing telecom operators could start offering 3G services immediately after being awarded a license, while in case of new operators, they will have to wait till March 2013 to commence 3G services in the country.

He said that there would be no minimum and maximum requirements for foreign equity and foreign controlled companies would be allowed domestic borrowing.

Responding to a question put by ProPakistani, analysts said that base price is little higher than they had originally expected. Earlier estimates suggested that the base price for 3G licenses would be $195 million, they said.

Experts opined that the winning bid won’t go beyond $270 mark, though those existing telecom players who have plans to not to go with 3G will play their best to increase the bid value; in severe case $300 million mark could possibly be crossed.

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