Saturday, January 28, 2023

The govt will change the 3G/4G spectrum auction terms

The government intends to alter the terms and conditions of the upcoming 3G/4G Additional Spectrum Auction. The govt will change The AAC has opted to use the current consultant’s report at net present value to hold a 10-year auction.

After a recent meeting led by Finance Minister Miftah Ismail. The committee decided to go ahead with a 3G/4G spectrum auction of the 2100 MHz band with a 5.5 MHz bandwidth for the next 10 years.

Sources say that a current operator asked for spectrum for 7 years. So the committee has now decided to auction off the spectrum for 10 years. An auction lasting only 10 years is quite unusual in the spectrum industry. Which typically auctions off spectrum for 15 years and uses the consultant’s report to set prices for that span. For a 10-year spectrum sale to take place, the length and also prices of the auction need to change.

According to reports, the Pakistan Telecommunication Authority (PTA) asserts during the meeting that the spectrum auction should extend for 15 years rather than 7. And that the pricing should reflect this longer duration. But other officials said that PTA should use the old consulting report to set the price and that the auction should last for ten years because an operator is need it.

Read more: The Largest Electricity Provider in Pakistan Will Go Digital

MoITT officials say the 10-year auction is discuss in committee. But the agreement is always make public once the minutes are post.

The committee will tell PTA how to move the process forward. More committee meetings is always hold to talk about the subject. The Telecommunication Act of 1996 will be followed during the spectrum auction to make sure that no operator is hurt 3G/4G spectrum auction terms.

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