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New Spectrum auction. All set for Telenor !

ISLAMABAD ( ABRAR MUSTAFA )

Pakistan Telecom Authority and Government of Pakistan are all set to hold another 3G/4G spectrum auction. It has been learnt that the Telecom authority along with the Government of Pakistan will be launching the second 3G/4G Auction that will see the spectrum that was left from the first one, held back in April 2014.

Many believe that the auction is being held for Telenor Pakistan. After the merger of Mobilink and Warid, Telenor has subsided to a position where it can no longer be a dominate number two in the market. Mobilink will not only be able to enjoy a greater number in customers but in fact has also acquired LTE license that Warid has. This means Mobilink has been able to get more customers and a far more superior 4G spectrum at a far less price. That is why many believe that PTA in hopes to pacify Telenor that has been complaining that the market is no longer competitive, wants to hold an auction for new spectrum.

Previously the spectrum was auctioned at the basic price of 292 million dollars. At the end of the auction it was bought at 310 million dollars. This time the auction will be held at 395 million dollars. Many believe it will be auctioned at the price of 450 million dollars including tax that will be the new benchmark once another auction is held in the future or any New License.

Many experts and senior officials of both telecom companies and government believe that Telenor will be foremost party in the auction. Ufone last time did bid for the 4G spectrum but took it back. It remains to be seen what will this auction reveal. Mobilink and Zong have no interest in new auction.

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