3-G license bidding: Hafeez assures investors of fair Competition

Finance Minister Dr Abdul Hafeez Sheikh on Tuesday assured investors that the bidding of 3-G license would be transparent and all the players would be provided level playing field. Addressing Investors Conference on Auction of Mobile Cellular License Spectrum for 3-G/4-G here, Hafeez said the process of license auctioning would be conducted on a professional basis and no one would be given preference.
All the investors would be provided level playing field. "This process will be totally transparent," he added. Hafeez said Pakistan telecom sector represents a symbol of transformation and message that how a sector could be changed only by bringing in good management. The minister said that Pakistan telecom sector has gone a long away and was not second to any other country. He said the auction of 3-G license would be an exciting opportunity for the investors like the cellular mobile units.
Pakistan Telecommunication Authority Chairman Dr Yaseen gave an overview that how the telecom was transformed after the deregulation and was major driver for foreign investment in the country. He said during the last six years (FY2005 to FY2011), Foreign Direct Investment (FDI) in Pakistan was $21.5 billion. Thirty-two percent of the FDI was in telecom sector.
He said South Asian, Middle Eastern and North African Telecom Council (Samena) has declared PTA as the most progressive telecom regulator in South Asia in 2011. The country's total subscribers with existing live mobile operators reached 111 million and teledensity (Mobile and Fixed) is over 68 percent. Yaseen said that telecom revenues in 2011 were over $4 billion and telecom investment during last six years was around $12 billion with FDI in telecom sector during last six years touching $7.1 billion. Import of telecom equipment crossed $766 million and broadband subscribers reached 1.7 million (growth rate per annum 66 percent).
The government of Pakistan recently announced the policy for introduction of 3-G mobile services in Pakistan and the licenses will be technology neutral. The licenses/spectrum will be awarded through open auction. The PTA chairman said that the auction will be through multiple round, open outcry method and base price is $155 million with bid earnest money of $23.28 million for a period of 8 years.