The right spectrum

Some experts have suggested that spectrum being auctioned should be widened to include 4G frequencies.

Attention to detail has never been the strong suit of the government of Pakistan and the auction of the next generation of mobile telecommunications spectrum appears to be no exception. To its credit, the Nawaz Administration made several key decisions better than its predecessors. It was quick to appoint a consultant to manage the auction. It has also been careful not to label the spectrum auction third-generation (3G) or fourth-generation (4G), instead going for what is being described as a ‘technology neutral’ auction.

However, it forgot one critical detail: while the spectrum auction grants mobile companies the flexibility to set up 3G or 4G capabilities as they see fit, the spectrum being auctioned is the 1900-2100 megahertz band that is typically only used for 3G spectrum. In effect, the auction will be ‘technology neutral’ in name only, since the choice of spectrum on auction will all but force the mobile companies to invest in 3G capabilities.

Given how rapidly 4G technology is spreading across the world, Pakistan cannot afford to be left behind. The government has already shown an awareness of this fact. However, the auction clearly needs to be modified. Some experts have suggested that the spectrum being auctioned should be widened to include 4G frequencies so that the auction truly becomes technology neutral. We agree with this view, since it will not only allow the mobile companies to jump directly towards 4G technology but will also allow the government to bargain for a higher price for the spectrum during the auction.

We recognise that it may still take some time before Pakistan sees a roll-out of 4G technology, given how long it takes to set up mobile telecommunications infrastructure. But it is precisely due to that long gestation period that the government needs to act now and allow companies the flexibility to invest in the right technology. Pakistanis need to be connected to the world at the right speed, or else risk being left far behind.

Published in The Express Tribune, January 3^rd, 2014.

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