Pakistan Telecommunication Authority is all set to hold full-scale mock auction for 3G and 4G spectrum today. This practice auction – before the final auction on April 23rd – is aimed at letting the qualified bidders understand the auction process and the technicalities associated with the software that is used for the spectrum auction.
PTA said that the purpose of mock auction is to make sure that qualified bidders participate in final and real auction with comprehensive understanding of the system and the rules.
It maybe recalled that Pakistan Telecommunication Authority will hold final auction for 3G/4G spectrum on April 23rd, 2014.
As discussed before, 3G / 4G spectrum auction will be electronic in nature, i.e. bidders will be bidding online through internet. It is learned that all qualified bidders will bid from their head-offices in Islamabad in the presence of their board of directors and senior administration.
As explained before, 3G / 4G spectrum auction in Pakistan will be a SMRA (Simultaneous multiple-round ascending) auction in which spectrum Lots will be auctioned simultaneously over rounds of bidding.
It merits mentioning here that bidders will be assigned colours with which they will be bidding. Hence bids will come from colours and not with operators’ names. PTA said that this confidentiality is aimed at boosting the competition in the auction.
Each bid will have a time interval or 45 minutes and operators will have to beat previous highest bid with-in the allotted time.
PTA said that minimum bid should be at least 3% higher than the the previous highest bid, however, this rate (or 3%) will be lowered towards the end of auction.
PTA sais that the software used for the auction and all other liaisons is arranged by Value Partners, the consultants hired by the authority for the auction.
It maybe recalled that Mobilink, Telenor, Ufone and Zong had qualified for the auction of the spectrum.