PTA Publishes IM: 3G / 4G Auction in Pakistan on April 7th

ISLAMABAD ( ABRAR MUSTAFA )

Pakistan Telecom Authority has been published Information Memorandum  ( IM ) for next-gen license auction , after which we have a date of Auction for 3G and 4G licenses now.The auction for three 3G and two 4G licenses is set for April 7th, 2014.

Base price for one 3G license from 2100Mhz is set at $295 million while the reserve price for 4G license from 1800Mhz band is set at $210 million for a duration of 15 years.

In case a new operator wins the 3G and/or 4G license then it will also have to buy a GSM license worth $291 million from 850Mhz.

In order to win 4G spectrum in 1800 MHz band, the bidder must win at least one 3G license.

License auction will comprise of two phases. In the first phase, operators will have to submit sealed bids – which must not be less than the base prices of licenses — to qualify for the second phase.

Second and final phase will involve simultaneous multiple round ascending (SMRA) auction to determine the winner of spectrum. Second round of bidding will only happen if there are more operators than the licenses available for auction.

PTA has asked the stakeholders to submit their input on IM before March 10th, 2014. Operators will be allowed till March 19th to inquire about anything related to bidding.

By March 25th, 2014 – 4PM Pakistan Time – is the deadline for the operators to submit their sealed bids, along with a pre-bid deposit of 15% of the total value of the sealed-bid.

Executive Summary

Spectrum Auction for the Next Generation Mobile Services

·         Government of Pakistan in-line with its recently announced policies of Oct 2013 and Feb 2014 has decided to auction spectrum for the proliferation of Next Generation Mobile Services in Pakistan based on technologies standardized for 3G and advanced Generation mobile networks.

·         The offered spectrum is in 2100 MHz, 1800 MHz and 850 MHz bands.

·         All existing Cellular Mobile Operators as well as new entrants will be eligible to participate in the auction. However, 850 MHz band is reserved only for the new entrant.

 

·         The license term will be 15 years.

·         Total available spectrum in 2100 MHz is 30 MHz (paired). The base price is USD 295 Million for 10 MHz block in 2100 MHz band;

·         Total available spectrum in 1800 MHz is 20 MHz (paired). The base price is USD 210 Million for 10 MHz block in 1800 MHz;

·         Total available spectrum in 850 MHz is 7.38 MHz (paired). The base price is USD 291 Million for 7.38 MHz block in 850 MHz band.

·         The Auction Design shall be a sealed bid format for indicating the quantity and choice of spectrum followed by SMRA (Simultaneous Multiple Round Ascending Auction).     

—  In order to win spectrum in 1800 MHz band, the bidder must win at least 2×10 MHz spectrum in 2100 MHz band.

—  Earnest Money is 15% of the Base Price

—  Winners shall provide coverage to major cities of Pakistan within 6 months

The detailed Information Memorandum is available at PTA website www.pta.gov.pk

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