3G Auction is under Criticism | InfoZonePK

There are different opinions and thinking on the 3G auction in Pakistan which is going to held on March 29, 2012.

Senate’s Standing Committee on Information Technology met on Tuesday discussing various aspects of upcoming 3G licencing   and possuble revenue that Govt of Pakistan would earn.

The Senate Committee criticized PTA for using the term 3g/4G LTE and technology neutral licencing for the upcoming auction o spectrum in Pakistan and asked PTA’s Chairman as to why he is favoring PTCL in his personal capacity. The chairman of the committee, Senator Muhammad Idrees Khan commented that the whole process of auction the spectrum is designed for one single organization in mind.

Senator Pevaz Rasid pointed out that only terms 3G should have been used. When asked the member of Minster of IT Ismail Shah responded that Minister had recommended to use the word 3G but it was PTA only which introduced the term 4G and LET later in the draft.

While clarifying his point, Chairman PTA, Dr. Muhammad Yasin told committee that we are offering spectrum and not 3G and by international standards it is always a neutral licence and not something specific to 3G, 4G or LTE. When Pakistan auctioned2G licence back in 204, they were also of neutral technology and similar method is being applied now.

Committee realized that the licencing should bring maximum earning for Govt of Pakistan and licence base price should be increased from $ 210 million to $291 million that is equal to the earlier collected price for 2G licences back in 2004.

Committee further criticized the privatization of PTCL and asked PTA why it has been unable to collect the outstanding installments of $800 million from PTCL.

Committee’s Directions:

  • Remove the term 4G/LTE and technology  neutral from licencing /LTE draft as 4G.
  • 4G/LTE will be licences later for earning more money
  • Increase the base price from $ 210 million to $ 291 million
  • No defaulter will be able to participate in the bidding
  • 50 % of the licencing amount will be paid in 30 days and rest will divided in 5 equal installments in local currency