PTA Sets 5G Spectrum Payment Terms, Moratorium, and Penalties After Auction

The Pakistan Telecommunication Authority (PTA) has released details of the payment terms for the Initial Spectrum Fee for 5G services, following the signing of licenses with telecom operators that secured spectrum in the 5G auction held on 10 March.

According to the PTA document, the clause on payment of the Initial Spectrum Fee outlines the moratorium period, markup rate, payment obligations, and penalties applicable to licensees.

The document states that a one-year moratorium will be granted from the date of issuance of the license. During this period, no payments will be required, and no markup will accrue on the outstanding amount. The moratorium applies from the date the license is issued and covers the entire first year.

After the moratorium period ends, licensees will be required to choose one of the available payment options for the remaining amount of the Initial Spectrum Fee. The document specifies that markup at the rate of KIBOR plus three percent will be applied on the outstanding balance until the final payment is made.

The PTA further states that any delay in payment will result in a Late Payment Additional Fee of two percent per month, or part thereof, calculated from the due date until the payment is cleared. It adds that if any payment of the Initial Spectrum Fee, including instalments, becomes overdue, PTA may initiate legal action under the applicable legal framework.

The document also notes that if the KIBOR rate or the exchange rate of the National Bank of Pakistan is discontinued during the payment period, the replacement rate announced by the Ministry of Finance or the State Bank of Pakistan will be used from the date of discontinuation for payment calculations.