The Advisory Committee for the Auction of unsold Next Generation Mobile Services (NGMS) has approved the auctioning of the 4G spectrum.
According to the sources, the projected base price for one 10Mhz block might be somewhat around $300 million.
Prime Minister of Pakistan is the person in-charge of the Ministry of Information Technology and Telecommunication. He might issue a policy directing the action as soon as Wednesday.
The sources have also revealed that the auction process will be completed by the end of May 2017. Also, the government has decided not to divide the spectrum into two blocks. Instead, it will be auctioning the last available spectrum of the single block of 10MHz in 1800MHz.
A committee was constituted by Prime Minister Nawaz Sharif to carry out the auction of this spectrum. It is led by Minister of State for Information Technology and Telecommunication Anusha Rahman. The members of the committee include Special Assistants to PM for Law, Secretary Finance, Secretary IT, Executive Director Frequency Allocation Board (FAB), Chairman Pakistan Telecommunication Authority (PTA), Secretary Law, and Member telecom. Member Telecom has named as the “Committee Secretary”.
It was last Thursday when the Advisory committee met to take a decision on the Next Generation Mobile Services (NGMS) spectrum (4G) auction.
The Advisory committee for auction was presided by the Minister who reviewed the study about the local and regional telecom markets.
There is a fear of getting a poor response amongst the committee members, therefore, they have formulated sub-committees. The Chairman of PTA is leading the sub-committees who are analyzing the regional as well as global markets. The study includes the occurrences in the market and the responses received when they auctioned the spectrum in recent past.
The report created by the sub-committee was submitted to the Advisory committee for more consideration in order to take the necessary actions.
The government conducted market surveys in the past couple of auctions. However, they did not go for the comparative study of benchmarks from the regional and local telecom providers. The government had a consultant study last time according to the PTA officials but a further market analysis was conducted by it.
Last time in 2015-2016, the government had budgeted the auction of the two licenses of 3G and 4G to be Rs.65 billion. Later, they revised it to be Rs.45 billion and decided to go for a single frequency spectrum auction. It had a base price of $395 million with an 850MHz band.
The 4G license remains unsold and the government has decided upon a budget of Rs.75 billion from its auction during the current fiscal year.
- 4G Spectrum: google