Incentives under study for 5G auction

The federal government has notified the constitution of an advisory committee for the approval and inclusion of incentives in the budget for fiscal year 2022-23 to facilitate the auction of 5G technology.

The government has set a deadline of launching the 5G technology in December 2022 or January 2023.

The committee will review and approve a 5G strategic plan to enable the timely launch of next generation services in consultation with all stakeholders including the telecom operators. According to the notification, the committee will approve policy directives for the telecom spectrum and release of IMT/5G. It will oversee the spectrum auction/ release process to be undertaken by Pakistan Telecommunication Authority (PTA).

Earlier, the Economic Coordination Committee (ECC) took a decision on January 21, 2022 to form a committee that would finalise the way forward for the release of additional spectrum and launch of 5G technology in Pakistan. The federal cabinet also ratified the ECC’s decision.

Under the terms of reference, the committee will be headed by Federal Minister of Finance and Revenue Shaukat Tarin.

It will comprise federal minister of information technology and telecommunication, minister of science and technology, minister of industries and production, adviser to prime minister on commerce and investment, Finance Division secretary, IT Division secretary, Law and Justice Division secretary, PTA chairman, Frequency Allocation Board executive director and IT Division member telecom.

Under the terms of reference, the committee will review the available and used spectrum in Pakistan vis-a-vis global spectrum utilisation. It will submit a plan for the optimum use of this scarce resource.

It will examine and finalise telecom reforms and incentives to promote the adoption of IMT/5G technology ecosystem and ensure that these are reflected in the Finance Bill 2022.

It will also review the market assessment report and approve the way forward based on recommendations of a reputed consultant hired by PTA for the auction, design and details of investment-friendly IMT/5G spectrum release to maximise spectrum utilisation in line with the ‘Digital Pakistan’ vision.

In a statement, Minister of Information Technology and Telecommunication Aminul Haq said that the IT ministry had issued the notification for constituting an advisory committee for the auction of 5G spectrum.

The minister said that the committee would review the spectrum available and used in Pakistan as per international standards and approve it after assessing the strategic plan for the launch of 5G services.

He pointed out that the stakeholders, especially telecom companies, would be consulted about the strategic plan, which would be finalised after a review of reforms and incentives for the telecom sector.

Haq emphasised that the creation of 5G ecosystem under the ‘Digital Pakistan’ Vision was important for the economic development of people and the country.

The minister revealed that initially 5G services would be launched in five major cities of the country, adding that the telecom sector had faced difficulties following the imposition of additional taxes.

Published in The Express Tribune, February 10^th, 2022.

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