MOIT Sets USD 395 Million as Base Price for 850MHz Spectrum

In pursuance of the policy framework finalized by the Advisory Committee for auction of frequency spectrum left unsold in the NGMS auction 2014 and subsequent approval from the Prime Minister, Ministry of Information Technology & Telecommunications today issued Policy Directive to PTA (Pakistan Telecommunication Authority) for conducting transparent and competitive auction for allocation of one block of 10 MHz paired spectrum in 850 MHz band.

Base price of the block on offer has been set at USD 395 Million after thorough analysis and based on the market demand study of the PTA and international technology and market benchmarking.

Due to rapid growth and escalating demand of mobile broadband services requirement of more frequency spectrum, which is a critical input for high quality mobile broadband services, was foreseen.

It is pertinent to mention that the penetration of mobile broadband services  have quickly grown from a paltry figure of less than 3% in 2014 to more than 17% in wake of the successful and transparent spectrum auction of 2014.

Keeping in view the future demand of the industry in terms of frequency spectrum an Advisory Committee, under chairpersonship of Minister of State for IT, was constituted by the Honourable Prime Minister of Pakistan to analyze the market situation and recommend a way forward.

The Advisory Committee convened four meetings and extensively deliberated on different options and market scenarios. In its 4th meeting, the Advisory Committee finalized its recommendations for approval of the Honourable Prime Minister.

In the policy directive, PTA has been directed to design the auction process in a manner to fulfill policy objective of optimal outcome while mitigating chances of collusion amongst the bidders. PTA will conduct the auction within this financial year. Payment terms and conditions will remain the same as in 2014 NGMS auction.

All existing mobile operators as well as new entrants will be eligible to participate in the auction. New license for provision of NGMS services will be issued to successful bidder for a period of 15 years. Provisions of Telecommunication Policy 2015 related to sharing of infrastructure and national roaming will be applicable.

It is expected that the current move by the Government to supply the market with critical commodity of frequency spectrum will prove to be an important milestone in enabling mobile industry to aggressively expand their networks to each and every nook of the country while maintaining international quality of service standards for Pakistani users and digital economy of the country.

  • All dominated by foreigners. Not one Pakistani company. Hopeless state!
    We Pakistanis will all remain slaves.

  • All the handwork is done by Pakistani people, We have to let a Pakistani company grow, so that they can ride the growth in Pakistan and move to buy other operations worldwide… Till how long will we be depended on these foreign companies…Our BIGGEST problem is we have no personalities to lead… The Top Pakistani Management is very weak and biased plus insecure…..(and most are corrupt). till we don’t overcome this we will not be able to grow our own companies…..AS FOR THE PRICE.. 500m USD is a fair price….. Just compare it with our neighbors and also look that everything in future will be become digital.. (all industries ) …. so the potential for both Urban and especially rural economy is a lot…. 500+ should be the Govt target…(The Govt should watch the upcoming acution in India and also other nearby countries and then Judge also….(if operators cannot pay then don’t sell… a time will come when they will beg to have it for even a Billion USD soon.

  • My company recently bought a WCS (2300) spectrum for 18 Billion. 850 for 500 million dollar is cheap. They should wait few more years or instead of selling it, they should lease it or do it on partnership basis.

  • Funny….lets deprive people of Pakistan of good services and wait till some Pakistani decides to invest and we should do same for PIA, Steel mill in the mean while most Pakistani businesses are busy investing in property and overseas companies as someone rightly pointed out. Pakistan was made for people not other-way around…people should come first.

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