Next generation services: Industry upbeat as country set to auction mobile spectrum by March

Government takes steps to avoid controversies, fills key PTA posts.

KARACHI:

In all likelihood, Pakistan looks set to conduct the much-awaited and oft-delayed auction of spectrum for advanced-generation mobile services by March next year.

Optimism is prevailing across the telecom industry as government’s latest steps – from appointments of key officials to policy directive and advertisements for hiring consultants – have done away with controversies so far.

Over the past few months, more than 160 countries have launched third-generation (3G) mobile services and the number of active 3G subscriptions has surpassed one billion, according to Parvez Iftikhar, an expert on information and communication technology.



By contrast, Pakistan, particularly the former government of Pakistan Peoples Party, ran into controversies in every single attempt to auction 3G mobile spectrum licences – a matter of great national interest. Even the current Pakistan Muslim League-Nawaz (PML-N) government could not take the process forward during the first three months in power.

The country has been trying to introduce 3G cellular services since 2006. However, plans to launch the next generation technology ran into trouble despite repeated efforts, leaving the country behind regional countries – Afghanistan, Bangladesh and India, which have already rolled out 3G services.



The principle of auctioning spectrum for introducing 3G services in Pakistan, according to a government’s policy document, was laid down in the Mobile Cellular Policy 2004. At that time, the telecom industry observed that the market was not ready for 3G and asked the government to delay the process – requisite frequency was not available at the same time, according to the policy document.

First major breakthrough came in December 2011 when the Ministry of Information Technology and Telecom issued a policy directive to the Pakistan Telecommunication Authority (PTA) – the telecom sector’s regulatory body responsible for the auction – for the introduction of 3G services. This was when the moratorium on new licensing was still in place between the government and UAE-based Etisalat, banning entry of new telecom operators until March 2013.

The moratorium was not the only reason that delayed the auction. The former government’s haphazard approach towards the auction, scheduled for March 29, 2012, resulted in at least three failed attempts.

The PPP government, according to experts, was looking at short-term gains as it was obsessed with bringing a new operator and wanted to conduct the auction quickly to reduce the country’s fiscal deficit. In doing so, it appointed Farooq Awan as PTA chairman in violation of telecom rules, drawing fierce opposition from the PML-N, then in opposition, and senior officials of PTA.



Awan appointed 3G consultants who prepared the Information Memorandum, the policy document for the auction, and was about to conduct the auction but his appointment was challenged in the Lahore High Court and his services were terminated. After Awan’s removal, PTA also cancelled the contract of 3G consultants, putting the auction process on halt once again.

With delay in 3G auction inviting nationwide criticism, it finally prompted the country’s top court to intervene. The Supreme Court, early in September, directed the government to appoint members and chairman of PTA in 10 days.

Following the Supreme Court’s intervention, the government seems to have taken all the right steps. The government, within weeks, filled the positions of members and chairman of PTA, which nobody challenged. Vacant since March, these positions hold a lot of significance for being the authority in the auction process.

Following the appointment of PTA’s members, the telecom regulator has got into action. To expedite the auction, it has formed a three-member committee, published advertisements and finalised Request for Proposals for hiring consultants who will assist the government in the auction.

Unlike Awan, PTA’s current leadership followed the Public Procurement Regulatory Authority rules while advertising for the consultants – that too wasn’t challenged on any legal grounds.



The progress comes after the Auction Supervisory Committee reviewed the 2011 policy directive on 3G auction and issued a revised version. As per the revised policy directive, dated October 7, the government will hold spectrum auction for next-generation mobile services by March 2014 while the spectrum will be technology neutral, meaning the operators can deploy the best technology now and can have the most modern technology afterwards.

Published in The Express Tribune, October 14^th, 2013.

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