PTA Clarifies Assignment Stage and Pricing Rules for 5G Spectrum Auction

The Pakistan Telecommunication Authority (PTA) has issued comprehensive clarifications on the assignment stage of the upcoming 5G spectrum auction, outlining pricing mechanisms, bidder obligations, and information disclosure requirements in response to a new round of queries from mobile operators on the Information Memorandum (IM).

In its written responses, the PTA explained that the assignment stage determines prices that are payable in addition to those established during the allocation stage. Opening prices for all assignment positions will be set at zero, while a bid submitted at this stage will constitute a binding commitment to pay the bid price for a specific position within a frequency band. The regulator added that the same pricing and activity rules applicable at the allocation stage will also govern the assignment stage, and that the increment schedule for assignment rounds will be communicated to qualified bidders in advance.

PTA Clarifies Assignment Stage and Pricing Rules for 5G Spectrum Auction

On the structure of bids, the PTA clarified that bidders may request a switch into only one position per round. To change position within a band, bidders must submit a decrease bid for their current position and a corresponding increase bid for the desired position, mirroring the process used during the allocation stage. The authority further noted that bid prices must fall within the range defined by the opening price and the clock price for the relevant round.

Addressing a key concern from the industry, the PTA confirmed that in bands such as 2600 MHz, the assignment stage will comprise three categories—bottom, middle, and top—with one lot in each category, irrespective of the differing spectrum quantities held by bidders. The regulator added that the bidder securing the middle position will not know the exact frequencies in advance, as these will depend on which bidder wins the bottom position.

At the application stage, the PTA said operators do not need to indicate demand for specific bands or quantities. However, the submission of a formal application together with the pre-bid deposit will constitute a binding commitment for a minimum of 50 MHz each in the 2600 MHz and 3500 MHz bands.

The authority also rejected proposals for post-auction rationalisation, ruling out any trading window that would allow bidders to adjust spectrum holdings before the assignment stage. According to the PTA, such a mechanism is not part of the auction design.

See Also: PTA Makes Minimum Bidding Mandatory for Operators in 5G Auction

On information disclosure and transparency, the PTA stated that the Electronic Auction System (EAS) will enable bidders to download round results in CSV format. It will include historical data in Excel. After each round—except the final one—bidders will be able to view their processed quantities and prices, aggregate and excess demand by category, as well as the opening and clock prices for the subsequent round.

The PTA further confirmed that each bidder will have two extension rights. The authority said it will correct an inconsistency in the glossary in the final version of the Information Memorandum.