Jazz and Zong are locking horns in a neck-to-neck competition for 10 MHz in the 1800 MHz band in the Spectrum Auction for Next Generation Mobile Services (NGMS) Azad Jammu & Kashmir (AJ&K) and Gilgit Baltistan (GB), and currently third round is underway.
In the 1800 MHz band, PTML (Ufone), Telenor & CMPAK (Zong) have submitted a demand for 1.2 MHz each, which is not part of the Electronic Auction.
Bidding started in series of rounds for 10 MHz, and Jazz and Zong are in the run for the spectrum.
Spectrum Auction for 1800 MHz was scheduled for 28 September 2021. PTA published Information Memorandum (IM) on 17 August 2021, after receipt of the Policy Directive from the Government.
In accordance with the timelines mentioned in Information Memorandum (IM), PTA received sealed bids for AJ&K and GB containing demand of Operators, i.e., CMPAK (Zong), PMCL (Jazz), PTML (Ufone), and Telenor Pakistan for Spectrum in both the offered bands on 22 September 2021.
Auction Advisory Committee is overseeing the Spectrum auction process, under the Chairmanship of Finance Minister, which has the representation of all stakeholders, including Federal Minister for Kashmir Affairs and Gilgit Baltistan, along with Secretary, Kashmir Affairs and Gilgit Baltistan.
The entire process is being internally overseen by an Auction Committee having representation from both PTA and FAB for a fair and transparent spectrum auction process.
Spectrum was offered to the Cellular Mobile Operators as per the following design:
- 1800 MHz Band (Total 16 MHz Spectrum was made available)
(1) 10 MHz – 2 x blocks of 5 MHz each
(2) 6 MHz – 5 x blocks of 1.2 MHz each
- 2100 MHz Band (Total 30 MHz Spectrum was made available)
(1) 6 x blocks of 5 MHz each
After evaluation of sealed bids and demand of Operators for particular blocks, the Clock Auction format will be followed for 10 MHz in 1800 MHz Band: as for remaining blocks, demand has not exceeded the supply.
Details of Clock Auction format are as under:-
- Bidding started in series of rounds for 10 MHz. In each round, bidders place the bids at the announced prices for a number of Spectrum blocks in Product 1 (10 MHz block), with an increment of 1 to 3 percent of the previous round price.
- As the Auction progresses, bidders can maintain or reduce demand, but they cannot increase demand.
- The price will increase from round to round as long as there is excess demand for that Product.
- Total demand will be made available to bidders after each round.
- The Auction will stop when demand equals supply.
- A refinement round will be done, if demand reduces supply, to ensure 100 percent spectrum is sold in that particular block.
- The base price of Spectrum is USD 0.87 Mn per MHz.
In the 1800 MHz band, PTML (Ufone), Telenor, and CMPAK (Zong) have submitted a demand for 1.2 MHz each, which is not part of the Electronic Auction.
Telenor Pakistan has submitted a demand for a spectrum of 15 MHz in the 2100 MHz band, which is not part of the Electronic Auction.
Furthermore, total revenue generated and final auction results will be declared in both bands after completion of the auction.
PTA is conducting the auction process with the assistance of an internationally reputed consultant, JV Telconet/Frontier Economics, who was on board since April 2021 and conducted thorough consultation with the cellular industry and other stakeholders.
