All available spectrum to be auctioned simultaneously through SMRA: PTA chairman

All companies participating in the auction asked to ensure availability of 3G services at the auction.

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) announced on Saturday that it would opt for the Simultaneous Multiple Round Ascending (SMRA) mechanism instead of the traditional physical call out method by companies for the 3 and 4 G spectrum auction to ensure transparency.

The authority’s chairman Syed Ismail Shah told the media on Saturday that the auction is proceeding according to their pre-announced schedule with the auction set to take place in a private hotel on April 23. The SMRA is a web based mechanism for auction prevalent in other parts of the world.

Shah added that the bidders, all local companies who were announced on Thursday to have qualified for the auction, have been asked to ensure temporary availability of 3G service for those attending the auction.

All the four companies have been allotted different colors to participate in the auction. Shah added that all the spectrum offered will go under the hammer simultaneously.

A mock auction is scheduled for April 21, aimed at familiarising the bidders with the new auction process.

The PTA chairman said that in case any winning bidder refuses to get the license, 15 per cent of the bid money deposited with PTA would be ceased and a penalty would also be imposed on the successful bidder.

The government is hoping to generate over $1.3 billion from the spectrum auction and usher in modern communication technology in the country.

Pakistan had offered 50 MHz as part of the spectrum auction, where 30 MHz was in the 2100 MHz band, while 20Mhz was the 1800 MHz band. The government had later amended the memorandum to include provision for the sale of two blocks of 5Mhz of 3G spectrum if there is excess demand.

SMRA Auction Features

• All lots are auctioned simultaneously over a series of rounds.

• In each round, bids will be submitted on individual lots at the announced prices.

• At the end of each round, a standing high bidder is identified for each lot.

• The standing high bidder is committed to the lot and cannot withdraw.

• The standing high bidder is released from its commitment when outbid by another bidder.

• When a lot receives at least one bid, the price for the lot increases in the next round. The bid increments will be upto a maximum of 3% of the last bid price, which will be decided by PTA after each round in consultation with the consultant.