Pakistan to auction 3G and 4G licenses simultaneously

PTA chairperson says 3G and 4G spectrum auctions are necessary for economic growth.

ISLAMABAD: Pakistan has decided to follow the Indian model by auctioning 3G and 4G licenses simultaneously, after reviewing various options, said Dr Ismail Shah, chairperson of  Pakistan Telecommunication Authority (PTA). 

Dr Shah said that after adopting modern technology, India has left Pakistan much behind.

The early adoption of technology and ecosystem improvement is our priority now, Dr Shah said, adding that profit is not the priority in the auctioning process, which is why PTA will not wait to launch 4G.

Since 2004, the industry dynamics have changed significantly and the auction will have a significant impact on the economy overall, Dr Shah added. Pakistan has already delayed the process as 4G was introduced in 2010.

India auctioned 4G much cheaper but it benefited a lot from the adoption of the technology.

Pakistan has set base prices of the spectrums not much higher than India’s or it could affect the roll out process, Dr Shah added.

The base price for 10Mhz block from 2100Mhz is $295 million, while the base price for 10Mhz block from 1800Mhz is $210 million.

Licenses to successful bidders will be issued for a period of 15 years.

The PTA chairperson explained that 3G and particularly the 4G spectrum auctions were necessary for economic growth, in spite of criticism.

“The economy was being impacted negatively with all the delays and abortive efforts to auction next-generation services in the country,” he said.

Dr Shah said that over 500 operators in 203 countries are already offering 3G services, while over 101 countries had 4G services.

Background

Dr Shah said that the auction process was initiated when the government issued a policy directive termed Spectrum Auction for Next Generation Mobile Services.

PTA thereafter started the process of hiring reputed international consultants to design and manage the auction process. After meeting all the procedural requirements and Public Procurement Regulatory Authority (PPRA) rules, Value Partners Management Consulting Limited was selected on November 23, 2013 from among five shortlisted applicants, while the contract with the consultants was signed on December 19, 2013.

The Chairperson said that each and every aspect of the auction is being documented and will be available for general public after the auction.

Pakistan’s telecom industry is several years behind the rest of the world where 3G networks have already matured and operators are in the process of launching 4G networks since 2010. Offering spectrum in different bands allows the government to maximize revenue. The combined base price value of 50MHz spectrum brings greater than $1 billion of investment into the country.

Offering both the 2100 and 1800 bands allows telecom operators flexibility to deploy both 3G and 4G networks and offer the most advanced mobile services to their customers. For the consumer, availability of high speed mobile broadband services in both urban and rural areas will encourage a more connected community and promote e-commerce related activities.

It is hoped that next generation mobile services will be an enabler towards GDP growth and will introduce more innovative e-services in areas such as medicine and education to facilitate rural and remote populations.