PTA Signs Consultancy Agreement with UK Based Firm for Another 3G/4G Auction

Pakistan Telecommunication Authority has contracted “InterConnect Communication”, a consultancy firm based out of UK, for provision of consultancy services for upcoming 3G/4G auction in the country, we have learned from sources who are aware of the development.

PTA, on directions of Ishaq Dar, Finance Minister of Pakistan, is aiming to conduct another round of 3G/4G auction in Pakistan with-in next few months.

Pakistan Telecommunication Authority, in order to speed up the process, recently finalized the consultancy firm for assistance in the auction of 3G and 4G spectrum.

A PTA spokesperson confirmed ProPakistani that an agreement with InterConnect Communication — for provision of consultancy services for auction of 3G and 4G spectrum — has been signed.

It maybe recalled that Pakistan sold four 3G and one 4G licenses in April 2014 for a total value of USD 1.182 Billion, while one block in 1800MHz and another in 850MHz was not sold then, which PTA is aiming to sell through an auction in next few months.

Any future 3G and 4G auction in Pakistan will be hugely challenged by variety of taxes on telecom sector

Our sources tell that InterConnect Communication has already begun its working to study the dynamics and details of Pakistani market. After this initial homework, consultants will assist PTA in preparing IM for the spectrum auction.

It won’t be out of place to mention that any future 3G and 4G auction in Pakistan will be hugely challenged by variety of taxes on telecom sector due to which Mobile Phones companies are reluctant to invest any further in their businesses in general and in spectrum in specific.

In fact Mobile phone companies have already signaled to boycott upcoming 3G / 4G auction after recent taxes on data and other telecom services. Telcos are also concerned about government’s non-serious and stubborn behavior towards telecom sector.

With decreasing revenues of telecom sector, all thanks to inapt government policies, it will be interesting to see PTA will be able to generate any interest in local operators (let alone any new foreign operator) for the planned 3G and 4G auction.

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

    • Vodafone jin jin countries myn b hai wahan k users gaalian hi dete hyn like india and u.k
      Orange, Verizone ya Tmobile behter options hyn but impossible to come here. Turkcell might come

  • Would you please follow the link in story to know further details?

    Your link shows the results of one operator, not the entire industry.

  • I dont feel that any existing telecom company will be interested in 850 MHz spectrum. And 1800 MHz spectrum lost its charm after imposition of heavy taxes on data services from both federal and provincial govts.
    Companies from outside the market will also not interested in 1800 MHz spectrum due to above mentioned reason and low ARPU of market, as Pak has a narrow market and it will be very difficult for new entrant to capture a healthy volume of users. Zong is still facing consequences of late entry as most of Zong sims are secondary or same number users with low ARPU having Mobilink, Ufone or Telenor as primary number.

    • Zong is here for Chinese long term goals they look in broader business sense not narrow minded single sector profits. I’m sure they will be providing cargo tracking services to clients on cpec.

        • Why do you think that 10mhz each 3g/4g, will be enough for increasing Pakistani needs? Other countries meanwhile have 50mhz just for lte.

  • Pakistan Telecom Sector wants something huge in form of profits. Pakistani Telecom market is already prevailed by cartel of monopolistic schools of telecom. They are already deducting huge money from customers and charging for services which are offered for free in other part of world.
    I mean deductions on checking balance.
    Deductions on the name of Service Charges when loading mobile cards although they are not reconstructing their infrastructure and you know all.
    Deductions on getting sms delivery reports.
    While they are yet finding ways to monetize their earning even more in the form of looting customers by offering lottery services.
    They are yet outputting positive revenues as their is huge taxes also by government.
    If their revenues fall slightly they are arguing serious concerns on that.
    Yet you are favoring these telecom market mafias in your post. My request for you to stop presenting the negative angles of one side. You must consider the other side too which is favoring the end users i.e. I mean consumers or customers of telecom operators.

    I never seen any profit falls in the earning of these telecom operators. I Suggest GOP to impose 30% tax on the profits they are earning from their customers so that their thirst for more and more profit falls in positive sense.

    Government should evacuate taxes on the services of these telecom operators so that the end users did not affected any more.

    Government should also formulate policies so that the new entrants come to market. We are fed up from these pocket monsters.

    • 30% taxes? What are you a headless chimp? After implementing that 30% tax on their profits, telcos would simply charge another 30% from your mobile load and kinds like you will start whining about their cruelty. ****ng advocate of corrupt government.

    • there is already a 32% tax on the profits of telecom companies. New entrants in a saturated market? you want to destroy the industry? Its quite clear you know nothing about economics

    • Okay I don’t know much about economics. As per my information there is no tax on profit shares of these telecom operators. If their is any such tax than these operators must show them in their deductions on Gross Profit before outputting net profit.
      Pakistan is among such markets where there is no downfall in profits or any loss to these market giants. And they are enhancing the profit ratio with the previous financial years. Economists have clearly seen a cartel and government should act to demoralize these practices.

      • What are you high on? Have you ever opened financial statements of a telecom company. There is a ‘line item’ called ‘taxation’ which is deducted from profit. PTCL eg has paid more than Rs 3 Billion in direct taxes in 2014. Direct taxes that is on Income .

        Profits are continuously declining year on year for telecom companies that is why the market is saturating. I don’t which ‘economists’ have you been listening to cause they don’t anything.

        In my opinion you have created a fantasy world in your mind and your commenting on that.

        • Hassam Bhai tell me any country where telcos charge customers for checking the balance or on sms delivery reports. As per my observation the revenues of these telcos drops mainly due to installment of 3G/4G infrastructure. Despite investment on improvement of infrastructure they are still showing positive revenues and their is significant growth with previous years.
          These telcos on the other side are also responsible for terrorism as they have issued a lot of numbers without proper verification system.

          • Your neighbor Bangladesh and India both charge for these services. The investment in 3G has nothing to do with revenues. Revenues are falling cause a) the number of calls people make are falling and the number of SMS beig sent are falling B) telecom like all other sectors face inflation and due to stiff competition are unable to raise prices. Hence they have shifted to charging for balance check countries where these dont exist average revenue per customer is $ 20-30 in countries like India and Pakistan where average revenue per customer is as low as $1-$1.50 , they have to use such techniques. And there has been no significant growth in revenues for the last three years. Revenues are falling or have remaind stagnant.

  • Ugh! Dumb politicians care about none. They would not care even if companies threaten to shutdown their businesses for implementing nasty taxes. A Politician is always born with empty head.

  • Mobilink and Telenor posted strong results in Q3 2015 both operators have about 60% market share than how telecom revenue is declining?

    • it is very difficult for new entrant to capture market with limit of 5 sims per cnic. only possibility for for buyer of 1800mhz to build a network mainly for data as court has now allowed 3 data sims per cnic.
      example is 3 uk…once 3 network of uk was 90% used only for data . don’t know current situation though

  • IS Pakistan has not a single talented person to give consultancy, is Pakistan so backward in technology understanding? only crammer rulesss???? very bad Pakistan shame that u cant produce single consultancy company for ur own country and say u have thousand telecom engineer :) very sad

  • although taxes on telecom sector are higher but there is one more issue that no one discusses and that is “salaries in telecom sector when compared to other telecom companies abroad”. To give an example telecom companies in Pakistan are paying less than 200 dollars a month to their call center and customer service employees

  • Almost everyone ‘abroad’ who uses a mobile pays a fixed monthly package that starts at about $20-30. How do you expect companies in Pakistan to match their counterparts abroad when the consumer is paying far far less than the consumers pay abroad?

    • No, many are switching to contractless and pay as you go services because many Telecom companies can’t keep giving subsidies on smartphones.

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