3G spectrum auction: Unsatisfied with proposals, PTA scraps plan to hire consultant
Instead advertises to hire advisers to help with much-delayed transaction.
KARACHI:
The auction of third generation mobile spectrum licence may face further delays as the telecom regulator has scrapped the idea of hiring a consultant firm and has instead decided to hire individual advisers for conducting the auction.
According to a November 6 advertisement, PTA has invited applications for short-term positions of Spectrum Valuation Adviser, Spectrum Auction Design Adviser, Auctioneer/Auctions Software Adviser and Spectrum Regulator Policy Adviser.
The advertisement came after the telecom regulator, which has been tasked with auctioning the 3G spectrum licence, rejected all three firms that had sent proposals in response to PTA’s earlier advertisement for hiring a consultant firm for the auction.
The first company, according to sources close to the matter, was rejected because it didn’t send the processing fee of $1,000. The second company, which was from Hyderabad, India, had made a consortium with consultants from America and Denmark. The Denmark consultant didn’t meet the minimum education requirement as he had no Masters degree, sources said, adding the firm didn’t even nominate a team leader besides lacking seriousness and workmanship.
The third company was from the United Kingdom, which had also written the 2004 cellular policy, according to sources. The firm met the technical requirements and secured 75% marks. It, however, failed to convince the authority with its financial feasibility by asking for commissions based on financial slabs for the total sale price of three 3G licences.
PTA has restarted the whole process, which will cause further delay as the authority is once again in the process of interviewing candidates who have responded to the ad.
Responding to queries from The Express Tribune, PTA Chairman Farooq Awan admitted the auction would probably be delayed by another 15 to 20 days. He, however insisted the auction would be held this year.
“We found it to be the best way out for timely auction,” Awan said, when asked why the authority was hiring advisers instead of a consultant firm. PTA has wasted a lot of time and faced difficulty in hiring a consultant, he said.
Hiring individual advisers, who will work as PTA employees, will also serve the purpose, the chairman said. After hiring the advisers, PTA will not need to hire a consultant firm, he said. “In fact, this way we will not rely on a single firm but on people with diverse experience.”
PTA violating PPRA rules
This advertisement is “a DOA [dead on arrival]” as it is in violation of the Public Procurement Regulatory Authority (PPRA) rules, commented a PTA official who requested not to be named.
Explaining, he said the response time in PTA’s ad is just seven days while it is supposed to be at least 15 days for national bidders and 30 days for international bidders as per Article 13 of PPRA rules.
He said there is no internal communication within PTA about the ad and officials don’t know what’s happening in the case of hiring of a consultant in the ‘third phase’ (hiring of consultant for the third time).
“This advertisement has nothing to do with PPRA,” PTA Chairman Awan said while responding. “We are required to hire a consultant of international repute, be it a firm or an individual,” he said, adding this is a separate matter and they don’t have to comply with PPRA rules.
“To ensure transparency of the auction, we have formed an auction oversight committee that has members from media and civil society,” Awan said.
Published in The Express Tribune, November 17th, 2012.
The auction of third generation mobile spectrum licence may face further delays as the telecom regulator has scrapped the idea of hiring a consultant firm and has instead decided to hire individual advisers for conducting the auction.
According to a November 6 advertisement, PTA has invited applications for short-term positions of Spectrum Valuation Adviser, Spectrum Auction Design Adviser, Auctioneer/Auctions Software Adviser and Spectrum Regulator Policy Adviser.
The advertisement came after the telecom regulator, which has been tasked with auctioning the 3G spectrum licence, rejected all three firms that had sent proposals in response to PTA’s earlier advertisement for hiring a consultant firm for the auction.
The first company, according to sources close to the matter, was rejected because it didn’t send the processing fee of $1,000. The second company, which was from Hyderabad, India, had made a consortium with consultants from America and Denmark. The Denmark consultant didn’t meet the minimum education requirement as he had no Masters degree, sources said, adding the firm didn’t even nominate a team leader besides lacking seriousness and workmanship.
The third company was from the United Kingdom, which had also written the 2004 cellular policy, according to sources. The firm met the technical requirements and secured 75% marks. It, however, failed to convince the authority with its financial feasibility by asking for commissions based on financial slabs for the total sale price of three 3G licences.
PTA has restarted the whole process, which will cause further delay as the authority is once again in the process of interviewing candidates who have responded to the ad.
Responding to queries from The Express Tribune, PTA Chairman Farooq Awan admitted the auction would probably be delayed by another 15 to 20 days. He, however insisted the auction would be held this year.
“We found it to be the best way out for timely auction,” Awan said, when asked why the authority was hiring advisers instead of a consultant firm. PTA has wasted a lot of time and faced difficulty in hiring a consultant, he said.
Hiring individual advisers, who will work as PTA employees, will also serve the purpose, the chairman said. After hiring the advisers, PTA will not need to hire a consultant firm, he said. “In fact, this way we will not rely on a single firm but on people with diverse experience.”
PTA violating PPRA rules
This advertisement is “a DOA [dead on arrival]” as it is in violation of the Public Procurement Regulatory Authority (PPRA) rules, commented a PTA official who requested not to be named.
Explaining, he said the response time in PTA’s ad is just seven days while it is supposed to be at least 15 days for national bidders and 30 days for international bidders as per Article 13 of PPRA rules.
He said there is no internal communication within PTA about the ad and officials don’t know what’s happening in the case of hiring of a consultant in the ‘third phase’ (hiring of consultant for the third time).
“This advertisement has nothing to do with PPRA,” PTA Chairman Awan said while responding. “We are required to hire a consultant of international repute, be it a firm or an individual,” he said, adding this is a separate matter and they don’t have to comply with PPRA rules.
“To ensure transparency of the auction, we have formed an auction oversight committee that has members from media and civil society,” Awan said.
Published in The Express Tribune, November 17th, 2012.