The Pakistan Telecommunication Authority (PTA) is all set to auction spectrum for 3G/4G services in Azad Jammu and Kashmir and Gilgit Baltistan (AJ&K and GB) by the end of this year.
In this regard, the authority has issued policy directive on Wednesday for auction of three blocks of 10MHz each in 2100MHz and one block of 10MHz in 1800MHz band while one block of 10MHz in 2100MHz band and one block of 10MHz in 1800MHz band have been earmarked for the Special Communications Organisation (SCO), telecom services provider to both public and private sector (general populous) in AJ&K and GB region.
PTA will carry out the auction process, fulfilling policy objective of optimal outcome mitigating chances of collusion among bidders. The auction shall be accordingly conducted by PTA in the minimum possible time after the issuance of policy directive, said the PTA.
Meanwhile, PTA will hire services of a local consulting firm to calculate the base price and to design auction process while the expenditure incurred on the consultancy will be met by PTA out of the auction proceeds.
According to the Directive, all existing telecom operators in Pakistan, AJ&K and GB will be eligible to participate in the auction. A new license for the provision of next generation mobile services will be issued to the successful bidders/auction winners. The tenure of license will be 15 years. The auction winners may deploy renewable energy sources as power back up.
The PTA said that the successful applicants can pay minimum 50% upfront payment, while the remaining to be paid in 5 equal installments in 5 years with mark-up rate of 3% + LIBOR.
No further NGMS related auction will be carried out for 18 months from the date of auction. However, for any spectrum and the licence for a new operator, if remains unsold from this auction, PTA retains the right to hold or dispose of the same as deemed appropriate. Supervisory committee has been formed to oversee the auction process to be conducted by PTA and removal of any difficulties during auction process. Around Rs 2 billion were available in the USF Fund for development of ICT sector in AJK and GB. As soon as framework was finalized by AJK and GB Councils, the funds would be transferred to USF for development in AJK and GB.
