Unsold spectrum will impact Government’s expectations

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Spectrum Auction

The Pakistan Telecommunication Authority (PTA) has declared that no auctions will be held in the 2100 MHz band in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB), and that spectrum will be allocated to Telenor Pakistan, for a base price of $0.87 million.

Telenor Pakistan has submitted bid for 15 MHz spectrum in the 2100 MHz band. The unsold 15MHz of spectrum in the 2100MHz band will once again obstruct the government to reach anyway near to its projected revenue.

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For Next Generation Mobile Service (NGMS) in AJK and GB, the PTA had sought applications from cellular mobile operators for 16 MHz paired spectrum in the 1800 MHz band and 30 MHz paired spectrum in the 2100 MHz band. The authority issued a statement stating that an auction for the 1800 MHz band will be held on September 28, 2021 in accordance with the auction regulations stated in the Information of Memorandum, however, no electronic auction will be held in the 2100 MHz band.

In accordance with the timelines specified in the Information Memorandum (IM) for the Spectrum Auction for Next Generation Mobile Services (NGMS) in AJK and GB 2021, the PTA received bids for both 1800 and 2100 MHz spectrum bands from CMPAK (Zong), PMCL (Jazz), PTML (Ufone), and Telenor, Pakistan on September 22nd, 2021.

Following a review of the proposals received, the PTA has determined that all four bidders are qualified. The current spectrum auction will increase the quality of service for AJK and GB subscribers while also expanding the coverage footprint for voice and data services. This will have a favorable impact on the tourism sectors of the AJK and GB. After the sale concludes on September 28th, 2021, the total revenue generated and final auction results will be announced. The PTA is running the auction with the help of internationally renowned consultant JV Telconet/Frontier Economics, who has been on board since April 2021 and has undertaken extensive engagement with the cellular industry and other stakeholders.

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