Pakistan to Auction 4G Spectrum in May for $300 Million
5 months ago
The Advisory Committee for the Auction of unsold Next Generation Mobile Services (NGMS) spectrum (4G) gave go-ahead fot the auction of 4G spectrum, we have checked.
While it’s not confirmed yet, officiall sources told ProPakistani that projected base price for one 10Mhz block is around $300 million.
Official sources revealed that Prime Minister, who is the Minister in-charge of the Ministry of Information Technology and Telecommunication, may issue policy directive for auction latest by Wednesday.
The auction process would be completed by end May 2017, the sources confirmed.
Furthermore, the government has decided to go for auction of the last available spectrum of single block of 10MHz in 1800MHz, without dividing it into two blocks.
Prime Minister Nawaz Sharif had constituted an Advisory Committee for auction of this spectrum which is headed by Minster of State for Information Technology and Telecommunication Anusha Rahman while Special Assistants to PM for Law, Secretary IT, Secretary Finance, Secretary Law, Chairman Pakistan Telecommunication Authority (PTA), Executive Director Frequency Allocation Board (FAB) and Member telecom are the members of this committee. Member Telecom was also appointed as “Committee Secretary”.
The Advisory committee for the auction of unsold Next Generation Mobile Services (NGMS) spectrum (4G) met last Thursday to take final decision on the spectrum auction.
The Minister chaired the Advisory committee for the auction and reviewed the comparative study of benchmarking from local and regional telecom markets.
Fearing poor response from the upcoming spectrum auction (4G), the Advisory committee had decided to undertake a comparative study of benchmarking from local and regional telecom markets. The Chairman PTA led sub-committee analyzed the regional and global markets, which have gone through spectrum auction in recent past.
The sub-committee submitted its report to the main spectrum Advisory committee for consideration and further necessary action.
During the last two auctions, the government conducted markets survey through consultants but did not go for comparative study of benchmark from local and regional telecom markets. The government had a consultant study in hand as per the PTA officials but uncertainty led the government to go for further market analysis.
The government had budgeted Rs 65 billion from the auction of two licenses of 3G and 4G for 2015-16. However, later government revised it to Rs 45 billion, while deciding to go for single frequency spectrum auction in the 850 MHz band with base price of $395 million.
One license (4G) remained unsold and the government has budgeted Rs 75 billion for the current financial year from its auction.