Committee formed for 5G auction

Cabinet approves telecom infrastructure sharing framework that will reduce costs

ISLAMABAD:

Caretaker Federal Minister for Information Technology and Telecommunication Dr Umar Saif on Wednesday announced that the federal cabinet had approved the Telecom Infrastructure Sharing Framework and the formation of a committee for the auction of 5G spectrum.

Under the infrastructure sharing framework, telecom companies would have the option to jointly utilise resources such as towers, antennas, cable ducts and other critical infrastructure. This mechanism is aimed at streamlining the use of resources and potentially reducing operating costs.

The minister highlighted that the adoption of the framework would open doors for new companies to enter the telecom arena. In addition, the green light for constituting a 5G spectrum auction committee will play a pivotal role in the introduction of new generation technology.

The committee will be headed by Caretaker Finance Minister Shamshad Akhtar and will comprise the minister for IT, minister for science and technology, minister for industries, secretaries of relevant ministries and officials of the Federal Board of Revenue.

Saif said that the committee’s primary task would be to review the availability of spectrum in various frequency bands, including 700 MHz, 1,800 MHz, 2,100 MHz and 2,600 MHz.

Subsequently, the committee will take steps to auction the spectrum, based on recommendations of the Pakistan Telecommunication Authority (PTA).

The minister acknowledged that the total spectrum allocated to the four telecos was inadequate to meet the requirements of consumers.

Underlining Pakistan’s status as the seventh largest mobile phone market with 194 million consumers, Saif highlighted the government’s vision to promote local manufacturing of affordable and high-quality mobile phones.

The caretaker minister repeated the initiatives taken by the previous two governments, but claimed credit, saying that revolutionary initiatives had been undertaken by the IT ministry over the past two months to bolster exports of the IT and telecom sector.

These included local manufacturing of mobile phones to reduce reliance on imports, conserve foreign exchange and create employment opportunities in the hi-tech industry as well as the promotion of freelancers.

To facilitate IT exporters and boost exports, the minister mentioned, the State Bank of Pakistan (SBP) this week increased the retention limit for export proceeds from 35% to 50% in the Exporters’ Specialised Foreign Currency Accounts (ESFCAs).

IT exporters have also been allowed to make payments from these accounts without any approval from the SBP or other banks.

The new initiatives include financial assistance of Rs100,000 for freelancers for setting up their own e-working centres, which is mainly aimed at addressing the lack of suitable workplaces.

“A freelancer can earn up to $30,000 per year, which will significantly contribute to the national economy,” the minister stressed.

Published in The Express Tribune, October 26^th, 2023.

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