The Ministry of Information Technology and Telecommunication has issued a policy directive to the Pakistan Telecommunication Authority (PTA) for holding an auction of the Next Generation Mobile Services (NGMS) spectrum in Pakistan.
According to the details, $831.8 million is the minimum estimated revenue based on the base price, but it could go up in case of a successful auction. The spectrum auction will also result in the improvement of mobile broadband services in the country.
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The policy directive issued by the ministry stated, “reference Federal Cabinet Decision vide Case No 686/24/2021, dated 27-07-2021 in respect of ECC meeting held on 16-07-202l, the subject Policy Directive No. 1-2/2020-DT dated 4th August 2021 is enclosed for necessary implementation by Pakistan Telecommunication Authority”.
The spectrum auctions for NGMS in Pakistan had been conducted in 2014, 2016, and 2017 under the Policy Directives issued by the Federal Government of Pakistan. Subsequently, the demand for data services had grown exponentially, and the broadband subscribers in the country increased from a mere 14 million in 2014 to over 100 million in April 2021 over seven years.
There has been a particularly significant surge in the demand for broadband services during the COVID-19 pandemic. This ever-increasing reliance on wireless mobile broadband services has necessitated the demand for the availability of more spectrum, and hence, to meet the connectivity needs of the citizens of Pakistan.
After considering the recommendation of the Auction Advisory Committee (constituted by the Federal Government vide 1-2/2020-DT dated 1 October 2020, amended on 24 March 2021); based on the inputs from the Consultant, the PTA, and the FAB; Federal Government in the exercise of the powers conferred under Section 8(2) of the Pakistan Telecommunication (Re-organization) Act, 1996 (amended in 2006) hereby issues the following policy directive for auctioning the available radio frequency spectrum in 1800 MHz and 2100 MHz bands for compliance by the PTA:
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For the purpose of conversion, the National Bank of Pakistan TT selling rate prevailing on the date preceding the date of payment shall be used. The payment terms shall be as under:
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A new license shall be issued to the successful bidder for the auctioned spectrum. The tenure of the frequency assignment shall be 15 years. The provisions for Spectrum Trading/Sharing as per the approved regulatory framework shall be incorporated in the new licenses, and the terms and conditions related to improved Coverage and Quality of Service (QoS) etc., shall be incorporated by the PTA in order to enhance mobile broadband proliferation in the country.