Some members of the media and telecom companies (Telenor) became nervous about the govt plan to change the rules for selling more 3G/4G spectrum at auction.
Operators have said they don’t like any proposed changes to the auction rules that could help Telenor. They think that the government should treat all businesses equally.
A representative of a telecom company said that different standards for different businesses are not acceptable. He also said that all the businesses in the telecommunications industry had just renewed their licenses. So if the government shortens the length of a license or lowers the cost for one company. The other companies will ask for the same.
Also, the government has decided to lease the spectrum for 10 years instead of the usual 15 years, which will save them money.
The telecommunications company’s representative warned that any attempt to make the terms and conditions easier could hurt the sale of more airwaves. If the government steps in to help one company, other companies will find a way to adjust. He said that competing businesses would fight the plan in any way possible.
The Telecommunications Act of 1996 mandates that the Ministry of Information. Communications Technology holds an auction to allocate additional spectrum for 3G and 4G services (MoITT). There will be no breaking of the law, and the minutes from the meeting of the auction advisory committee will be released soon.
Federal Finance Minister Miftah Ismail led the Auction Advisory Committee meeting on August 3. By loosening rules and regulations. The Committee has decided to hold a 10-year auction of the 3G/4G spectrum that isn’t being used.
Even though operators say that the government is working with Telenor 3G/4G. Experts in the field have pointed out that every spectrum auction in the last ten years has benefited the same company. At least one spectrum auction gave the impression that the company Ufone had official support. Another gave the impression that the company Jazz had official support. There were rumors that Zong won the auction in 2014.
According to experts in the field, the government has tried many things in the past to help operators. Like splitting a 10MHz block into two 5MHz blocks to lower the cost of spectrum for operators. When customers were able to use next-generation services. Even if the quality wasn’t always perfect, it helped the industry and the customers.
Ten years later, it’s common knowledge that the decision to auction the 4G spectrum along with the 3G spectrum in 2014 was good for operators, customers, and the government.
Experts say that the government’s willingness to try new things has always been good for the ecosystem and that this decision could also turn out well. Other operators could also benefit when they need spectrum in the next few years. As they could get it for 10 years instead of the usual 15 years. Pay only two-thirds of the advance fee instead of a higher fee.