Budget 2016-17: Govt Aims to Generate Rs. 75 Billion from Spectrum Auction

The government has budgeted Rs 75 billion from the auction of 3G/4G spectrum during 2016-17 under the head of non-tax revenue, revealed budget documents.

It maybe recalled that government is yet to materialize its budgetary requirement for 2015-16 through spectrum auction. Federal government had budgeted Rs. 65 billion from spectrum auction for 2015-16, but estimate was later revised to Rs. 45 billion.

PTA is yet to complete the Next Generation Mobile Services (NGMS) Spectrum auction but has plans to auction spectrum later this month.

The government lately decided to go for single frequency Spectrum auction in the 850 MHz band with base price of $395 million.

From Rs. 45 billion — that government is likely to make during the auction in 850MHz band — an unprecedented increase has been projected at Rs. 75 billion for the next financial year 2016-17 already.

It must be mentioned that only Telenor is participating in the auction that’s planned later this month.

Top Pakistan Telecommunication Authority (PTA) officials expressed its inability to comprehend the increase in revenue for next year while saying that they were not consented on the matter.