The telecom regulator has put on sale 30 mega hertz (MHz) of spectrum in 3G or 2100MHz band and another 20MHz of spectrum in 4G or 1800MHz band. CREATIVE COMMONS
KARACHI: Despite lack of interest from new telecom operators in the spectrum auction, interest from existing telecom operators exceeded, the Pakistan Telecommunication Authority (PTA) said on Tuesday, rubbishing claims made in a Reuters report.
“We have received bids for both 3G and 4G spectrum and the overall demand has exceeded the supply,” PTA Chairman Dr Ismail Shah told The Express Tribune without giving further details, but added that he was hopeful of concluding the auction for next-generation mobile licences in the second round scheduled for later in April.
The telecom regulator had put on sale 30 mega hertz (MHz) of spectrum in three 3G licences in the 2,100MHz band and another 20MHz of spectrum in two 4G licences in the 1,800MHz band.
The spectrum auction is scheduled to be completed on April 23.
Four existing telecom operators including Mobilink, Telenor Pakistan, Ufone and Zong had already submitted their bids on Monday. Warid telecom abstained.
The PTA, according to its chief, opened the sealed bids and the response was positive as the four operators combined demanded for more spectrum than what had been put on offer.
Earlier on Tuesday, speculation gathered after a report in British news wire service Reuters reported that Islamabad would raise no more than $850 million from the spectrum auction.
Pakistan could not raise the expected $2 billion from the spectrum auction because of a scant interest in the bidding by telecom operators thus struggle to fund its budget this year, Reuters said in a report that attributed findings to anonymous sources.
The report, which quoted an unnamed official from the finance ministry, further said the finance minister was even considering calling off the auction because of a disappointing response y the bidders on Monday – no new operator bid for the spectrum while there was apparently no competition among the existing players, according to the report.
Immediately after its release, the report got media’s attention and PTA’s offices were flooded with queries from electronic and print media. IT finally took the telecom regulator to issue an official rebuttal of the said report.
PTA spokesperson Khurram Mehran refuted assertions made in the story as incorrect and baseless. The response from four existing cellular mobile operators was very encouraging and satisfactory, he said.
According to Reuters, none of the operators had bid for 4G spectrum. PTA’s chairman, however, confirmed that they received bids for 4G band as well.
While PTA refuted the entire report, a careful study of the same indicated some factual inaccuracies.
For example, Reuters’ report claimed that Mobilink and Zong bid for 10 MHz while Telenor and Ufone both bid for 5MHz, an assertion laughed off by the PTA officials noting the 5MHz band was never even offered.
As per the guidelines of Information Memorandum (IM), the policy document for the spectrum auction, no operator could bid for 5MHz – since the minimum slot for which bid could be submitted was 10 MHz, according to PTA.
“We have not yet offered the 5MHz slot to the bidders,” said Dr. Shah. “We may do this later on only if we are sure the whole spectrum will be sold and the demand exceeds supply. But that option is not available to them at this stage,” he said.
The report quoted a finance ministry official as saying, “There are four available 3G blocks in 1800 MHz. The base price for 10 MHz block is $291 million.”
The 1800MHz band – in Pakistan’s case – has been reserved for 4G technology and not 3G. Moreover, the base price for 10MHz block in 3G band is $295 million, not $291 as mentioned by the report (the $291 million price was offered only for new entrants, and not existing telco operators).
The PTA also denied the presence of any finance ministry official at the submission of bids. “First of all, no bidding happened and secondly the bids were received and processed by PTA only,” it said in an official statement.
“It is deeply regretted that a world renowned news agency like Reuters has run a fabricated story on 3G auction and has failed to seek the version of PTA, the sole body responsible for auction,” Mehran said.
“We are going for the auction according to schedule,” said the chairman, adding the response to the auction was very positive.
COMMENTS (43)
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Well,We will enjoy 3g very soon.I am excited about it. this is a good opportunity to get 3g/4g in Pakistan which will bring healthy business ,employment and many other latest facilities in pakistan
Operators interest in 3G/4G shows clear success of this auction before time,it's a pessimistic step from the operators who are taking part in this auction.
GodSpeed PTA
this is a good oppertunity to get 3g/4g in pakistan which will bring healthy business ,employment and many other latest facilities in pakistan
Welldone PTA and its team..
The reports from reuters is totally baseless.. even on base price, 3/4G will fetch more than 1.3B US$.. This will be a productive auction
This is a fake hype created by some of news agencies. Auction process will achieve its goals. This all 2 billion$ was expected if any new operator opt for licence. Still 1.3 Billion$ base price is a solid deal.
some people cant see Pakistan on progressive way so they spread rumors.The fact is that 3G and 4G become vital for the telecom industry in Pakistan. Without these technologies telecom industry’s survival is impossible. So (PTA) took bold step.Come on People we want to progress like other countries
This is a base less report regarding 3g/4g auction to lead this towards failure.Some actors are trying to sabotage it for their motives.We all know 3g/4g will change the economy as well as the Telecom sector of Pakistan.The foreign agencies are misguiding people as well as media too.they just want their news like selling hot cakes.May Allah give success to this Auction.Excellent job done by PTA in-spite of pressure.
The reports from reuters is totally baseless.. even on base price, 3/4G will fetch more than 1.3B US$.. this will be an productive auction
Shame on ET and Reuters for publishing fake story earlier. They are trying their best to sabotage the auction process.
I would leave this country if PTA call off the auction!
The Only question is left does we people use 3G/4G in our lives or you people left it for our children or maybe their children lolx when this auction thing over ? so many questions but only ans is that when this technology comes to us.
The bottom line is how much the Government expected to get paid? So Mr PTA tell the numbers and if it is not $2 billion or more then it is a failure as stated by Reuters.
Reuters is clearly misleading people with false news that has no legitimate sources.
Pakistan will be in modern development race of technology soon....
THe government is trying all it efforts because we are hearing for years that 3G is gonna launch soon but this time it seems its really work hard on this project.
Nice initiative by the PTA. It is an opportunity the mobile operators could not miss on.
Impressive work by PTA and its team..
every where we heard about reuters thats against pta and govt witout clarification.these people who dont want pakistan to get in tecnology or even in other industries dont trust until you didnt confirm.
I hope it will take Pakistan to the right way....
Finally someone from Govt. is able to reveal the true side of these news cooking agency who can do any thing for sake of meeting some businesses interests...Well done Mr. Khurram you are really an asset for PTA and Pakistani nation...please do continue responding to them :)
Its good that PTA chairman clarify each and everything about this bidding process. ET should be careful by publishing such kind of baseless stories. Hope for the best with this new technology in future.
its good news we all are waiting for 3g/4g,
This report is false and PTA rejected it and fake news are being floated.GEO has given the PTA point of view in this article.
shame on reuters for spreading false news ,Reuters has lost credibility now.
Maybe you guys should actually bother doing some fact checking before you deciding to post fiction.
its good news
I see customers already porting away from Warid....
Express news should take responsibility also because you are also published Reuters report with out verification.
Whatever the govt can get through bid is just its luck.. . Postponing will not give govt any benefit.
As a consumer I care less about how much money the govt. makes and more about whether the auction will continue or not. As long as the auction is going to happen and we are going to get 3G then I am happy.
shame on reuters for spreading false news. reuters has lost credibility now.
Warid not putting up any participation...what does this means, are they not interested in providing 3G or 4G services to its customers? Please say no otherwise I will change my carrier.