The Ministry of Information Technology and Telecommunication (MoITT) and Pakistan Telecommunication Authority (PTA) will make recommendations on the spectrum rates for the auction of additional 3G and 4G spectrum after the minutes of the meeting of the Auction Advisory Committee (AAC) have been approved.
A meeting of the MoITT and PTA has been scheduled for this week, according to sources in the Ministry of IT, and will provide ideas on the prices for the spectrum auction. The spectrum rate must be approved by the AAC in the end.
According to reports, a telecom operator has shown interest in obtaining two 5 MHz blocks in the 2,100 bands for a seven-year term, and the ministry has suggested the same. However, the AAC rejected the idea and authorized the sale of an additional 11.2 MHz of 3G/4G spectrum in the 2,100 bands for a ten-year term.
The price of the spectrum is fixed for 15 years according to the consultant report, but under the revised formula, the price will be fixed for 10 years.
Additionally, reports claim that PTA won’t engage a consultant since the MoITT and the Authority will make recommendations for the new spectrum pricing based on the cost of the spectrum that was previously auctioned.
Following receipt of pricing recommendations from MoITT and PTA, a follow-up meeting of the AAC will be scheduled. After the Authority makes any final decisions, the MoITT will release a policy directive for new spectrum auctions.
PTA rejected the sale of an extra spectrum for one operator for seven or 10 years at the AAC meeting on August 3, 2022. According to PTA, the basic pricing is set at $29 per 1MHZ for 15 years based on the consultant study. You cannot change that.
The MoITT claims that the Telecom Act of 1996’s Clause 8(2) does not fix the length of the spectrum bidding process. It is negotiable at the federal level.
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