Body to conduct comparative study of 4G benchmarking

Fearing poor response from the upcoming spectrum auction (4G), the Advisory Committee for the Auction Tuesday decided to have further comparative study of benchmarking from local and regional telecom markets. The government is planning to auction the remaining 4G spectrum in the current financial year, but uncertainty prevails in the market due to heavy estimated price and low demand, official sources revealed.
The government had budgeted Rs 65 billion from the auction of two licences 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 licence (4G) remained unsold and the government has budgeted Rs 75 billion for the current financial year from its auction.
During the last two auctions, the government conducted markets survey through consultants but did not go for comparative study of benchmarking from local and regional telecom markets. The government has consultant study in hand as per the PTA officials, but uncertainty led the government to go for further market analysis. The 3rd meeting of the Advisory Committee for the Auction of unsold Next Generation Mobile Services (NGMS) Spectrum held here on Tuesday under the chairpersonship of the Minister of State for Information Technology and Telecom Anusha Rehman.
Chairman Pakistan Telecommunication Authority (PTA) Syed Ismail Shah apprised the Advisory Committee of different recommendations and suggestions mentioned in the consultant report as well as internal PTA analysis on global price benchmark. The committee decided to have further comparative study of benchmarking from local and regional telecom markets. Therefore, a sub-committee headed by the chairman PTA was constituted.
This sub-committee will analyse the regional and global markets, which have gone through spectrum auction in recent past and on the basis of their comparative study, the sub-committee will submit its report to the main spectrum advisory committee for consideration and further necessary action.
According to official statement, Anusha Rehman stressed the need for early completion of comparative analysis so that process of spectrum auction can be completed. She further said that it is the utmost priority of the government to ensure that the upcoming spectrum auction is done in a transparent, competitive and efficient manner as usual to achieve optimum benefits for Pakistan, comprising of some 60 per cent thriving youth population.
While considering the rapidly growing broadband penetration in Pakistan, the upcoming spectrum auction has become more attractive for mobile broadband market and telecom operators, the minister added. The meeting was attended by Secretary IT Rizwan Bashir Khan, Chairman PTA Syed Ismail Shah, members of advisory committee, senior officials of Ministry of IT & Telecom, Ministry of Finance, Ministry of Law & Justice, PTA and FAB.