Sale of licence: 3G spectrum auction moves a step closer

A committee under finance minister to finalise procedure.

A committee under finance minister to finalise procedure. DESIGN: CREATIVE COMMONS

ISLAMABAD:


In a precursor to the much awaited auction of 3G licenses in the country the government has finally prepared its policy directive for the prized sale.


Minister of Information Technology (IT), Anusha Rehman on Wednesday told a parliamentary panel that policy directives for the auction of next generation spectrum would be finalised on Thursday (today).

Briefing a Senate panel headed by Senator Idrees Khan Safi on progress in the 3G licence issue, Rehman said that the prime minister has constituted an advisory committee under the chairmanship of finance minister to finalise arrangements for the auction.

“A high level advisory committee constituted by the prime minister for spectrum auction will approve the policy prepared by the Ministry of IT on Thursday,” she said.

Rehman added that the government had made efforts to open the spectrum auction for both existing companies and new entrants in the telecom industry. She revealed that while four operators were interested in the spectrum auction, there is no ban on new entrants despite the expiry of moratorium in March this year.


The committee is scheduled to meet on Thursday (today), where formal approval for the policy directive would be sought, Rehman added. The committee comprises Federal Minister for Finance (Chairman),

Federal Minister for Science and Technology, Minister of State for Information Technology, Secretary Finance division, Secretary IT&T, Secretary Law & Justice Division, member telecom, Chairman PTA and Executive Director Frequency Allocation Board (FAB).

Meanwhile, the newly appointed acting chairman of the PTA Dr. Ismail Shah informed the committee that the available spectrum for auction was not enough for all operators, therefore tough competition was expected, which would help generate greater revenue.

Commenting on the issue, Secretary IT Akhlaq Ahmed Tarar said that the government has decided to go for the auction following court directives. After completion of formalities, including the filling of vacant posts in PTA, they were moving forward on the auction process.

The committee was informed that consultants of international repute will be hired for determining price for the bidding process of 3G licences.

In response, the committee cited the auction of 3G licence by the UK in 2007 (20 billion pounds) and said Pakistan can also earn huge amount through the sale if sincere efforts are made by the government.

The minister welcomed suggestions from the MPs and said that the details of 3G auction would be presented before the committee for further guidelines once basic formalities are completed.

Published in The Express Tribune, October 3rd, 2013.
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