PTA Stops 3G/4G Spectrum Auction Amid Lack of Interest From Telcos

Due to the lack of interest of the four major operators, work on the auction of the 3G/4G top-up spectrum has been stopped.

Sources in the Ministry of IT and Telecommunication told ProPakistani that telecom operators were contacted by the Pakistan Telecommunication Authority (PTA) for spectrum demand and spectrum demand was sought in writing, none of the companies showed interest in purchasing additional spectrum, after which work on the auction of additional 3G/4G spectrum was halted.

PTA officials have also confirmed that the auction process of 3G/4G additional spectrum has stopped due to a lack of interest from companies. According to PTA officials, initially, Telenor agreed to purchase additional spectrum, but when the formal process was initiated after the approval of the Auction Advisory Committee and spectrum demand was sought from the companies, no company expressed interest in purchasing additional spectrum.

Sources told ProPakistani that Telenor had expressed interest in purchasing additional spectrum for 7 years whereas PTA was willing to offer spectrum for 15 years. The Auction Advisory Committee after detailed deliberation approved the auction of 3G/4G additional spectrum for 10 years. This was not favorable to Telenor as it wanted to synchronize the new spectrum with the already purchased spectrum, as the spectrum already purchased by Telenor was expiring in 2029.

The Auction Advisory Committee on August 3, 2022, decided to auction two blocks of additional 5MHz spectrum in the 2,100 MHz bands for a period of 10 years. The spectrum auction was expected to generate $150 million to $300 million in revenue for the government.