Deadline: Govt still hoping to get over $1.3b from spectrum auction

Four bids received, Warid did not participate.


Azam Khan April 14, 2014
Four existing Cellular Mobile Operators (CMOs) ie China Mobile, PTML (UFone), Mobilink and Telenor Pakistan submitted their bids while Warid did not participate.CREATIVE COMMONS

ISLAMABAD: Despite no new entry in the country’s telecom sector, the government’s hopes of getting over $1.3 billion from the auction of next generation spectrums still remain alive as four existing players will compete for three licences of 3G in bidding on April 23.

As the deadline to submit sealed bids for 3G and 4G spectrums lapsed on Monday evening, the Pakistan Telecommunication Authority (PTA) announced that it received four bids by the closing time, all from existing players.

This has reduced the government’s estimates to $1.3 billion as the licence of 2G kept for a new entrant will not be auctioned. The 2G licence for the new entrant had been priced at $290 million. The federal government had made frantic efforts to convince telecom giants of Turkey, Qatar and Saudi Arabia to come and bid for the new telecom spectrums. However, all such efforts remained unsuccessful.

Still, a ray of hope is expected amid stiff competition among the four existing players for three licences. Warid Telecom chose not to offer, as the company wants to wind up its business and plans to sell its operations.

Four existing Cellular Mobile Operators (CMOs) ie China Mobile, PTML (UFone), Mobilink and Telenor Pakistan submitted their bids while Warid did not participate.

After evaluation of bids, the PTA will announce the names of the qualified bidders on April 17. “As demand exceeds supply, the allocation of the spectrum will happen through an auction process,” the PTA officials said.

Published in The Express Tribune, April 15th, 2014.

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COMMENTS (2)

Yousuf Ali | 9 years ago | Reply

Warid gave out a press release some time back specially stating that it has no intention of selling, or ending it's operations in Pakistan, but is continuing to expand.

Asim Ali | 9 years ago | Reply

The government is out of touch with reality. At least 2 of the 5 operators are struggling to survive. The industry is heavily taxed at about 35%, there is severe energy crises in the country which continues to add a diesel surcharge to the cost of doing business, the rupee has massively devalued from Rs. 60 to the present Rs. 100 in the last 6 years. All operators are cutting down hard on jobs. What sweetener is the government offering to foreign investors to sink $ 2 billion on an impoverished land of 180 million people?

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