PTA Ordered to Complete 3G Auction by February 2014

Ministry of IT has issued policy directive regarding “Spectrum Auction for Next Generation Mobile Services in Pakistan” to PTA on 7^th October 2013, said a statement issued by Ministry.
Policy Directive was approved by Prime Minister himself.
The policy directive pertains to auction of spectrum for next generation mobile services in Pakistan (including 3G and advanced generations).
PTA is entrusted to carry out the auction in the most transparent manner in the shortest possible time. In this regard, PTA will hire the services of a consultant.
According to the directive, the allocation of the spectrum will be technology neutral and auction will be open for new entrants as well. Also, auction winners will encourage and facilitate local manufacturing, transfer of technology and research and innovation in telecom sector of Pakistan.
PTA has informed that auction will be complete by end February 2014.
As per policy directive, government has made it mandatory for existing cellular operators to share infrastructure on a cost-sharing basis with new entrants as well as among themselves. The PTA will prepare guidelines in this regard. It maybe recalled that a similar framework is already in place but is seldom practiced.
According to the policy directives, the consultant – to be hired by PTA in next couple of months — will identify the number and size of the block to be auctioned considering the market situation. The Frequency Allocation Board has identified 30 megahertz (MHz) paired spectrum in 1.9GHz/2.1GHz band for auction.
The new licence will be technology neutral and useable for technologies standardised for third-generation (3G) and advanced generation mobile services. The licence will be offered for a period of 15 years.

Pakistan to Auction New LDI Licenses as Binding Term with Etisalat Expires

Government of Pakistan’s binding of not issuing any new LDI license based on the sale-purchase agreement with Etisalat – under the sale of 26 percent shares of PTCL – got expired on March 22nd, 2013, after which Pakistan Telecommunication Authority is free to auction new LDI licenses now.
Sources familiar with matter told ProPakistani that telecom regulator is likely to auction new LDI licenses, at least to CMPak which is long struggling to get LDI license but was barred due to government’s SPA with Etisalat.
CMPak had once said that it could invest USD 500 if granted an LDI license.
Pakistan Telecommunication Authority, which is fighting hard to get its governing board (including Chairman and two Members) is likely to auction LDI licenses as soon as it will get its board back.
Auction of new LDI licenses are specifically crucial now when operators are charging high for international incoming calls. There are currently 14 LDI operators that are making five times more revenues after implementation of ICH when compared with their previous earnings.
It merits mentioning here at the time of sale of 26 percent shares of PTCL, Etisalat had confined government of Pakistan to not to sell any new telecom license for seven years. The term of this contract expired last month and now PTA is free to auction new telecom licenses.
Insiders tell that one reason of not auctioning 3G license till now was this SPA with Etisalat.
It won’t be out of place to mention that Etisalat is still to pay USD 800 million even after seven years of its takeover of PTCL. Etisalat says that it will clear pending payment after settlement of land properties with government of Pakistan.
Etisalat was even offered to deduct the cost of properties (worth USD 73 million) and to clear the remaining amount, which it has been denying.
Pakistan had once said that it could take back the control of PTCL if pending payment isn’t cleared, however, that turned out to be a just a statement.
Sources