PTA. Auctioning five licenses including 3G/4G spectrum within March 2012.


In a bid to generate around $800 million from telecom sector to overcome budgetary woes, the government on Tuesday unveiled its ambitious plan for auctioning of five licenses including 3G/4G spectrum within March 2012.
The government also assured the potential investors to complete this process in transparent manner.
The base price of 1900/2000 MHz (megahertz) license/spectrum with base price for each mobile cellular is $210 million and earnest money will be $31.5 million. The auction of this lincese will be done on March 29, 2012.
For another license of 800 MHz the base price was envisaged at $155 million with bid earnest money of $23.28 million.
“Let me assure you that the auctioning of 3G license will be accomplished in transparent manner and no one will be given preference in this process,” Federal Minister for Finance Dr Abdul Hafeez Shaikh said while chairing investment seminar on auctioning of 3G/4G license organized by Pakistan Telecommunication Authority (PTA) here on Tuesday night.
The minister said that there was track record of privatizing state owned institutions in transparent manner as PTCL was privatized when he was looking after the Privatization in the country so the auction of 3G would be accomplished on the same pattern by adopting transparent methods and level playing field for all parties.
According to the envisaged schedule for auctioning, the government has decided to auction 2100 MHz by giving three licenses to existing players and one will be given to new players and base price for each mobile cellular spectrum/license is $210 million with bid earnest money of $31.5 million. This license will be for 15 years term and new entrants can start operation after March 2013 as this was included into the auctioning process to accommodate the government’s commitment with Etisalat to allow other players after the deadline of March 2013.
Another license auction process for 800 MHz (megahertz) 3G/4G and this process will be through multiple rounds, open and outcry method. The base price of this license will be $155 million.
Chairman PTA, Mohammad Yasin told the participants on this occasion that the lincenses would be technology neutral and this process would be auctioned through open auction. All existing as well as new players would be eligible to participate in the auction.
The Chairman said the teledensity in the country stood at 68 percent that would get boost after auctioning of 3G lincense.
Secretary Cabinet Division Nargis Sethi said that the telecom sector received $7.2 billion foreign direct investment in last few years having share of 32 percent out of total received FDI. (Ends)

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