Pakistan Telecommunication Authority Sets Base Prices for 3G, 4G, Cellular Licenses

Pakistan Telecommunication Authority Sets Base Prices for 3G, 4G, Cellular Licenses

Islamabad: Pakistan Telecommunication Authority (PTA) has issued information memorandum for the auction of three 3G and one cellular license for 1900/2100 MHz (3G/4G/LTE) band and 800 MHz Band.

Base price for 3G license would be $ 210 million for duration of 15 years, while the auction will be held in multiple rounds through open outcry method.

Base price for Mobile Cellular (defunct) License is set at $155 million for duration of around 8 years.

The authority has set at $ 23.25 million as bid earnest money for auction of Cellular Phone defunct License for frequency spectrum of 800MHz whereas it set $31.5 million bid earnest money for auction of new Cellular Phone for spectrum of 1900/2100 MHz.

New License(s) for 3G/4G/LTE

Spectrum for Mobile Cellular (3G/4G/LTE etc.) licenses has been made available in blocks of 9.8 MHz given below. The winner of auction will have choice to select any block of 9.8+9.8 MHz from the available spectrum in 1900/2100 MHz:

Block Frequency

Block A: 1920-1929.8/2110-2119.8 MHz (9.8+9.8MHz)
Block B: 1929.8-1939.6/2119.8-2129.6 MHz (9.8+9.8 MHz)
Block C: 1939.6-1949.4/2129.6-2139.4 MHz (9.8+9.8 MHZ)

Base Price for a block of 9.8+9.8 MHz is US $ 210 Million

Operator(s) can start their services by 2013 after completing all mandatory legal and financial requirements.

Table 1.1: Indicative Timetable

 

Begin date for submission of Expression
of Interest (EOI) / Application  21th January 2012
Pre-Bid Conference     2nd March 2012
Closure of queries  9th March 2012
End Date for submission of EoI /
Application as per Annex-E  9th March 2012
Response of queries from PTA  11th March 2012
Qualification of bidders before auction  12th March 2012
Auction  29th March 2012

 

Defunct License For Technology Neutral services

PTA will award one technology-neutral nationwide license to Cellular Mobile Operators (CMOs) and including existing and new players, which was earlier held by Instaphone before termination of its services and operation.

The license awarded will be inclusive of radio frequency spectrum between 824.265 – 831.645 MHz (7.38) MHz and 869.265 – 876.645 MHz (7.38) MHz. The winning operator may launch any technology including 2.5G, 3G or 4G technology for rendering services.

The operator may start its services in 2012 after meeting all financial, network rolls out and operational requirements.

 

Event Tentative
Date (2012)
Publication of IM 20th January 2012
Begin date for submission of Expression
of Interest (EOI) / Application 21th January 2012
Pre-Bid Conference 2nd March 2012
Closure of queries 9th March 2012
End Date for submission of EoI / Application 9th March 2012
Response of queries from PTA 11th March 2012
Qualification of bidders before auction 12th March 2012
Receipt of Bid Earnest
Money in PTA’s Bank account 22th March 2012
License Auction 28th March 2012

 

Bidding Process:

PTA in its Memorandum of Information (IM) 2012 stated that the Bidding Committee will be announced prior to start of the auction and shall continue the auction until there are no further bids. The time duration between two bids shall be five minutes. Each bidder shall be granted a timeout of fifteen minutes each, on request, only twice during the entire auction process.

Each successive bid(s) shall have to be more than the already quoted bid. Therefore, the subsequent bid increment shall be in multiple of $2 million with a minimum bid limit of 2 million and maximum bid limit of $10 million.

The successful bidder shall deposit 50 percent of the auction winning price, that is, Initial License/Spectrum fee after adjustment of the bid earnest money within thirty (30) working days in PTA designated bank account.

The remaining 50 percent of the auction winning price shall be deposited in 5 equal annual instalments payable in US$ or equivalent in rupees. If the successful bidder fails to make the payment of first 50 percent of auction winning price (Initial License/Spectrum fee) within the stipulated time, the next highest bidder(s) in order of their bid(s) will be offered the license on the same auction winning price.

If no bidder is found ready to match the auction winning price, the Bidding session will be closed without awarding any license, PTA stated.

PTA shall forfeit the bid earnest money and all other amounts received from the defaulting bidders.

The defunct license shall only be issued after payment of first 50 percent of the initial spectrum fee within thirty (30) working days from the auction date. Whereas the new license shall only be awarded after payment of 100 percent of the auction winning price within sixty (60) working days from the date it is offered to the bidder.

PTA reserves the right, on the recommendation of the Bidding Committee, to disqualify any bidder and forfeit its money for different reasons such as failure of payment, misrepresentation and inaccuracy of facts in applications and corrupt practice, meaning the offering, giving, receiving or soliciting of anything of value to influence a public official in relation to auction process.

For more information, contact:
Khurram A. Mehran
Director (PR)
Commercial Affairs
Pakistan Telecommunication Authority (PTA)
Tel: +9251 922 5346
Fax: +9251 287 8133
Email: comaff@pta.gov.pk

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