PTA Halts 3G/4G Spectrum Auction Due To Lack of Interest From Telcos
The national telecom regulator Pakistan Telecommunication Authority (PTA) is responsible for holding spectrum auctions in the country. A few weeks back, the regulator sought demands from telecom companies regarding additional 3G and 4G spectrum. However, today, we have come to know that due to the lack of interest of the four major operators, the 3G/4G spectrum auction has been stopped.
3G/4G Spectrum Auction Stopped
Recent sources from the Ministry of IT and Telecommunication revealed that telecom operators were contacted by PTA for spectrum demand and spectrum demand was sought in writing as well. The bad piece of news is that none of the companies showed interest in purchasing additional spectrum, due to which work on the auction of additional 3G/4G spectrum was halted.
PTA officials have clearly told that the auction process of 3G/4G additional spectrum has stopped due to a lack of interest from companies. According to PTA officials, Telenor initially agreed to purchase additional spectrum, however, when the formal process was initiated after the approval of the Auction Advisory Committee and spectrum demand was sought from the companies, no company including Telenor expressed interest in purchasing additional spectrum.
According to the sources, Telenor expressed interest in purchasing additional spectrum for 7 years whereas PTA was willing to offer spectrum for 15 years. Moreover, after detailed deliberation, the Auction Advisory Committee approved the auction of 3G/4G additional spectrum for 10 years. It was not favorable to Telenor as it wanted to synchronize the new spectrum with the already purchased one which was expiring in 2029.
On August 3, the Auction Advisory Committee decided to auction two blocks of additional 5MHz spectrum in the 2,100 MHz bands for a period of 10 years. Moreover, the spectrum auction was expected to generate $150 million to $300 million in revenue for the government.
15th November 2022: Update
Recently, we got a clarification from PTA regarding this matter:
PTA conducts auction in accordance with policy directive issued by MOIT&T. Since no policy directive has been issued by the federal govt, therefore it is illogical to say that process has been stopped.
Also Read: PTA Seeks Demand From Telcos For Additional 3G/4G Spectrum for 10 years (phoneworld.com.pk)
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