DESIGN: CREATIVE COMMONS
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.
COMMENTS (39)
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Good....
Very Good.......
Dear Users, First of all 3g/4g haters.Auction just got hit on your face. four companies have bought 3g and 1 have already bought 4g technology respectively because people of pakistan were desperately waiting for these service for almost 8 years now( since a rise popularity of iphone 3g in pakistan) and it will be use by many users in pakistan (Especially Corporate users) and for a love of Allah stop Comparing Qmobile with Apple, Samsung, LG, Nokia and other international brand because QMOBILE DOES NOT SUPPORT 3G/4G TECHNOLOGY!!!!!! not even their precious Z4 [Kareena kapoor add wala (for people who doesn't know which Smartphone is Z4)]
@M.N: but qmobile,s does,t support 4g.
Do Afghanistani people have more 3g phones then pk. First technology then phones will follow.
I Live in UK and still even some areas havent got 3g and will now be directly upgraded to 4g when it comes to that particular area so 3g and 4g will not be obsolete for atleast 5 to 10 years. Specially considering the fact there is still no 5g standard yet.@unbelievable:
3G technology will bring a revolutionary change in the technology of Pakistan and will enhance some modern internet facilities to the end users........
3G technology is very beneficial for the country, 1st it will bring economic stability in Pakistan, bring employment for the youth and most importantly it will provide better technology with high quality internet to the end users.....Hope for the best, and get the best...
Sajjad, Supply creates demand not the other way around.. Maybe the next Rs500 Q-Mobile will be 4G.. And then almost everyone will have 4G. Supply of fuel created demand for fuel.. Supply of iPads, iPods, computers, mobile phones etc created the demand.. There wasnt demand for ipads before they launched.
The auction should not be delayed anymore. It is a good initiative by the government. Hope everything goes well and we get to use 3G soon.
@Sajjad: You mean that not even one out of ten thousand cell phones are equal to our better than iPhone 4, sgs2, nexus, various outdated lg, Nokia, HTC, Motorola, bla bla bla......
What a lovely observation!
@Sajjad: I guess most of the smartphone user have 4G compatible phones.
Dear Sajjid, LTE is not just for mobile but home broadband too. Once LTE is available, a desk top set will be provided by the telecoms provider to receive there 4G LTE signal. One roll out is live, sets will also be available.
Come on boys we all need 3G/4G .why are you creating hype so early.Technology is blessing.Remember when Mobile was introduced same was happened.We all want 3g.Cost is not a issue now this will b little expensive but not for long period.Good Job Govt as well as PTA .World is progressing towards 5g and we are crying on 3g now. Land line companies are worried about this auction's success.
@Sajjad - Don't try to be over smart. I can assure you that atleast one current mobile operator is going to buy 4G as well. So don't write just for the sake of writing intellectual comments.
how you all of you surly says that no one operator would have bid for 4g think about if any operator launch the 4g all the user move toward the that operator
Most of the operators have applied for 4G also. It will take about six months to start in main cities and about 4 years to start in the whole country. The process of implementing 3G is time consuming. Wait for it. :-)
The auctions will provide a lot of revenue which i hope the government will use effectively.
@Sajjad: i am totally disagree with u how u say that non of operator bid for 4g think about it that if any operator launch 4g all the user move toward them
nobody would use 3g due to high sky rates in pakistan peoples cant afford 2g internet i will wait for one more year so the 3g rates come down and i use
i disagree with all of u all these operator bids for 4g
how all of u surly say that non of operator would bid for 4G licence. Think if any one operator launch the 4g all the user move toward that company, it is total game of investment and profit i think all of these 4 operator bid for 4g
Stupid argument that people do not have 4G Sets. It is saying that villages do not need electricity because they do not have TV sets and Fridges. Oh bhai 4G aay ga to I will buy set for it !
@Sajjad Name your sources? Which survey? What report? I'm 100% sure you have no resources so please stop making baseless speculations.
@Sajjad: wrong, almost everyone has a smartphone. Of course not samsung or apples but local brands like q-mobile etc.
@Sajjad: That is why they are getting it cheaper than 3G. After 5 years, 4G license price will sky rocket.
Why bring India into this?
Pakistan should consider Afghanistan instead as I hear they have much faster broadband than what we get in India.
@Sajjad:
Remember that the licences would be valid for ~15 years and having one before the others could be a competitive advantage.
Also, whoever has a pricey 4G compatible phone would likely be able to afford pricey 4G services thus the incentive for the telco's to milk that segment.
In either case, April 23rd is not far and the results would be in front of us.
well technically not 4G devices are also smuggled in pakistan from europe and us i think if 4G is offered as portable broadband than telecom companies will give routers which basically is not a problem
@Sajjad Phones will come when we have 4G.
@Sajjad:
not even 0.01% of the Pakistan Population had a cell phone when mobilink launched it services and after the GSM introduction the users of cell phone increased enormously.
@sajjad They will. Its an investment. If its $210M now, it will definitely increase in the next auction for spectrum. Also the 1st ones to enter the market will will get ahead in gaining users for that technology
Totally agree with you Sajjad but it would be great to have a 3g network in our country, as you see a good percent of people have 3g comtible phones.
Sajjad well said.I do agree with you
I don't think any operator would bid for 4G licence since not even 0.01% of the Pakistan's population have 4G compatible phone..