Spectrum Demand in 3G / 4G Auction is More than Supply: Chairman PTA

3g_Auction_Pakistan

First round of 3G and 4G license auction in Pakistan gathered more demand from operators than the supply available in the allocated spectrum, confirmed us Dr. Ismail Shah, Chairman Pakistan Telecommunication Authority.

Yesterday four local operators submitted their bids for the first phase of 3G and 4G auction.

Dr. Ismail told me that demand for spectrum is more than the supply and hence auction will be concluded in the second round on April 23rd, 2014 where operators will bid for their desired spectrum.

It maybe recalled that Pakistan has allocated 30Mhz of 3G spectrum from 2100Mhz band while another 20Mhz of 4G spectrum from 1800Mhz band.

Two lots of 4G spectrum are tied with 10 Mhz of 3G spectrums (meaning that two operators opting for 10Mhz 3G licenses must have to buy 4G licenses as well), while other two lots of 5Mhz from 2100 Mhz band will be auctioned through bidding.

A total of four lots of 3G and 4G licenses will be auctioned, where two 4G spectrums are tied with 10 Mhz of 3G spectrums (meaning that two operators opting for 10Mhz 3G licenses must have to buy 4G licenses as well), while other two lots of 5Mhz from 2100 Mhz band will be auctioned through bidding.

  • Lot A:
    • One 3G spectrum of 10 MHz from 2100Mhz
    • One 4G spectrum of 10 MHz from 1800Mhz
  • Lot B:
    • One 3G spectrum of 10 MHz from 2100Mhz
    • One 4G spectrum of 10 MHz from 1800Mhz
  • Lot C:
    • One 3G spectrum of 5MHz from 2100Mhz Band
  • Lot D:
    • One 3G spectrum of 5MHz from 2100Mhz Band

Lot A and Lot B are bundled with 10Mhz blocks from each 2100Mhz and 1800Mhz bands, which means, buyer of Lot A and Lot B will have to buy spectrum from both bands for 3G and 4G.

Dr. Ismail said that PTA will notify the qualified bidders and their respective interest for spectrum on April 17th, 2014.

Dr. Shah refuted a recent report from Reuters, which claims that Pakistan may not generate more than US850 dollars from the auction.

Reuters in its report claimed that Mobilink and Zong have shown interest in 10Mhz blocks, while Telenor and Ufone showed their interest in 5Mhz blocks.

Not to mention, even if we agree on what Reuters has claimed, then 10Mhz of blocks for 3G – which are tied up with 4G spectrum – will cost US505 million for one lot (US295 million plus US210 million). While two lots of 5Mhz for 3G will generate US147.5 dollars for each license.

In such situations at least US1305 million (US505 million + US505 million + US147.5 million + US147.5 million) will be generated through the auction, unlike what Reuters claimed in its own story.

Dr. Ismail categorically confirmed ProPakistani that the position that Reuters has portrayed is cent percent wrong.

Dr. Ismail said that auction is going as per expectations and things are rolling smoothly. He was confident that Pakistan is going to witness its 3G and 4G operators with-in just two weeks.

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


  • Muhammad Aamir

    After the auction, then after how many days or month I will able to use 3G and 4G in major cities? Any idea?

    • Ali Khan

      It will Take at least 6 Months

    • Ejaz

      Why need auction if you only have two interested operators for lot A and B and two operators for C and D? Doesn’t make sense what Chairman PTA is trying to sell above…. I foresee big bashing by Mr Dar on his return and both PTA and MoIT are trying to take defence.

    • Saqib Mufti

      All companies already built a equipment for new desired tech, especially Zong working on priority basis. So they just wait for approval licence.

    • Imran Hassan

      all the major contenders have already upgraded their infrastructure hence 3G will immediately come into play once the auction has taken place.

  • jawadahsen

    i dont know what to believe in anymore.. The Express Tribune reported that the auction drew disappointing bids and Ishaq Dar may call off the whole thing. I guess time will tell what is true.

  • Sadam Waqas Khan

    Waiting for 3G/4G to launch ASP…..

  • Jamshed Khan

    dear following are the companies
    Ufone
    Telenor
    Mobilink
    Zong

  • Jamshed Khan

    Its obvious that they have already updated there set up

  • Bilal

    PTA is taking a good move to give these services to the people of Pakistan……..

  • Umar Afzaal

    Some non state actors are using lame excuses to postpone and delay this auction. 3g and 4g have numerous benefits.There is no true news regarding bid.there is propaganda against 3g and 4 g to lead this towards failure.

    • Bonga

      LMAO – this is too good :)

      Non-State Actors???

      Who???

      Taliban? Afghanistan? US? Or the Indian or Jewish Lobby?

      Or how about the failure of our government to effectively put together & pitch a Mobile Broadband investment plan to potential investors?

      Or the misplaced hope of MoIT and the Finance Minister that friendly countries like Saudi Arabia & Turkey would be in play?

      • imharoon

        (Y) You are the sanest bonga ever :P

  • Muhammad Khan

    Auction for 3g/4g is good move from PTA. It will help improve the economy of Pakistan.

    • Sidra

      yeah it will bring some economic growth in Pakistan

  • Imraan Hassan

    Reuters is obviously misleading people, trying to create a hype and get a response from the govt.

    • Sidra

      yeah Imran you are right …can u tell me whn it is going to launch?

  • Jawad

    Welldone PTA and its team..

  • Jawad

    The reports from reuters is totally baseless.. even on base price, 3/4G will fetch more than 1.3B US$.. This will be a productive auction..

    Godspeed PTA

  • Bilal

    definitely the users will be more and the tech will provide a sigh of relief

  • Jamshed Khan

    it will take about 2 week to month after the auction

  • Jamshed Khan

    after the auction as get any other updates from friends i will POST

  • Jamshed Khan

    So wait for till 23 of april