Pakistan Telecommunication Authority (PTA) is inviting applications from Pakistani and foreign bidders for its auction of spectrum in 1800 and 2100 MHz bands. The government hopes to raise around USD 1 billion from this spectrum auction, local newspaper Dawn reports. The new spectrum will be used for provision of phone and broadband services on the local market in the Azad Jammu & Kashmir (AJK) and Gilgit-Baltistan (GB) areas.
The PTA has issued an Information Memorandum to Pakistan’s four mobile operators, offering each company spectrum in the 1,800 MHz frequency band for USD 31 million and 1 MHz in the 2,100 MHz band for USD 29 million. The PTA is offering 12.8 MHz spectrum in the 1,800 MHz band and 15 MHz in 2,100 MHz band.
At the current base price, the government expects to raise at least USD 832 million from the total sale of 27.8 MHz, if there is no competition among the four mobile operators.
Interested operators can place their bids by 26 August. This phase will be followed by negotiations and discussions for one week between bidders and the authorities which include the PTA, consultant and other authorised officials. Mobile operators will then have to submit sealed bids by mid-September. The auction is scheduled for completion in three months.
The IM has also introduced an upper cap for the 1,800 MHz band on the mobile operators to restrict abuse of dominant position. The PTA has also announced that Jazz will be able to bid on up to 5.2 MHz spectrum only, as the company is currently using 24.8 MHz spectrum in the 1,800 MHz band; while Zong will be able to bid for up to 7.4 MHz as it currently uses 22.6 MHz spectrum. Telenor and Ufone are not constrained by this spectrum cap as each of them currently holds less than 10 MHz. The license will be valid for 15 years.
The government is also inviting new investors to participate in the auction process. A new entrant is now expected to launch services in Pakistan.
