The government is planning to auction the remaining 4G spectrum by end March 2017, but uncertainty prevails in the market due to heavy estimated price and low demand, it is learnt. The Ministry of Information Technology and Telecommunication (IT&T) spokesperson toldBusiness Recorder that the process for auctioning the remaining spectrum has been initiated. File has been sent to the Prime Minister's Office seeking approval for the constitution of Auction Supervisory Committee which will determine the base price, he added.
The government had budgeted Rs 65 billion from the auction of two licenses of 3G and 4G for 2015-16. However, later the government revised it to Rs 45 billion, while deciding to go for single frequency spectrum auction in the 850 MHz band with base price of $395 million. One license (4G) remained unsold and the government has budgeted Rs 75 billion for the current financial year from its auction.
Finance Minister Ishaq Dar earlier this month stated that national exchequer earned Rs 160 billion through five transparent auctions of telecom spectrums, adding that the earning from the spectrum is expected to reach Rs 200 billion with one more auction still to be held.
The IT&T Ministry and Pakistan Telecommunication Authority (PTA) have expressed ignorance about the budgeted amount saying that they were not taken on board in this regard.
The PTA officials added, "The last 4G license was sold for around Rs 25 billion. We do not know what led to the government budgeting Rs 75 billion for the sale."
The PTA officials confirmed that spectrum is available and they would go for the auction, once the directive is received. And this time the PTA would not require to hire the services of a consultant as the market study has already been done by the last consultant.
The number of 3G and 4G users in Pakistan reached 37.57 million by end December 2016 against 36.41 million by November. The PTA data shows that the number of 3G/4G subscribers increased in the country from 29 million in 2015-2016 to over 37 million by end December ie 8 million in last six months. The upcoming spectrum will depend on the number of subscribers and data usage as it would determine the market appetite for additional spectrum.
The government last year approved telecommunication policy with the objective of improving the sector's efficiency and service delivery but refused to give the status of the heavily taxed industry, officials added. The situation became worse for the government after the Mobilink-Warid merger. Except Ufone, other operators including Mobilink, Zong and Telenor have already 4G licenses and would participate in the upcoming 4G license only if they require additional spectrum.
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