During the NGMS Auction 2014 a frequency spectrum remained unsold. To conduct the auction of the remaining spectrum a policy framework has been decided by the Advisory Committee that has also been approved by the Prime Minister. The Ministry of Information Technology & Telecommunications notified Policy Directive to PTA for directing transparent and viable auction for provision of one block of 10 MHz paired spectrum in 850 MHz band.
USD 395 Million Set as Base Price for 850MHz Spectrum by MoIT
After detailed examination based on the market demand and analysis of the PTA and international technology and market bench marking the base price of the slot has been set at USD 395 Million.
As a result of fast growth and increasing demand of mobile broadband services requisite of more frequency spectrum, which is a grave contribution for great quality mobile broadband services, was foreknown. It is apposite to indicate that the penetration of mobile broadband services have rapidly developed from an insignificant number of less than 3% in 2014 to more than 17% in wake of the fruitful and transparent spectrum auction of 2014.
An Advisory Committee under the headship of Minister of State for IT, was created by the Prime Minister, keeping in mind the imminent demand of the industry in terms of frequency spectrum and to scrutinize the market condition and endorse a technique onward. The Advisory Committee organized four meetings and comprehensively pondered on various options and market circumstances. In its 4th meeting, the Advisory Committee concluded its commendations for endorsement of the Prime Minister.
PTA has been notified in the policy directive to plan the auction process in a way to achieve policy aim of ideal outcome while modifying probabilities of consent amongst the bidders. PTA will conduct the auction within this financial year. Payment terms and situations will remain the same as in 2014 NGMS auction. All present mobile operators as well as new participants will be entitled to take part in the auction. New license for delivery of NGMS services will be notified to successful bidder for a span of 15 years. Provisions of Telecommunication Policy 2015 related to sharing of infrastructure and national roaming will be pertinent.
It is anticipated that present move by the Government to supply the market with acute product of frequency spectrum will demonstrate to be an imperative landmark in permitting mobile industry to violently extend their networks to each and every part of the country whereas sustaining international quality of service criteria for Pakistani consumers and digital economy of the nation.
For further information on the Policy Directive visit MoIT website.