Four operators have acquired 15-year 3G spectrum licences in Pakistan paying a combined US$903m in the long-awaited auction. One of the bidders, China Mobile’s Zong, spent a further US$210m on a 4G concession.
The Pakistan Telecommunication Authority…
Four operators have acquired 15-year 3G spectrum licences in Pakistan paying a combined US$903m in the long-awaited auction. One of the bidders, China Mobile’s Zong, spent a further US$210m on a 4G concession.
The Pakistan Telecommunication Authority (PTA) has been trying to allocate the 3G frequencies since 2007 but a variety of regulatory issues had held up the process.
The total amount is below the bold US$2bn prediction that finance minister Mohammad Ishaq Dar had made, and the second 4G licence the PTA had made available was not acquired, according to a variety of local reports.
Zong and VimpelCom subsidiary Mobilink both acquired 2×10 MHz in the 2.1 GHz band, spending US$306m and US$301m respectively. Norwegian-owned Telenor Pakistan and Etisalat unit Ufone each won 2×5 MHz in the same band for around US$147.5m each.
The concession acquired by Zong is for a 4G licence in the 1.8 GHz band, which it bought for the base price. The country’s fifth and smallest player, Warid Telecom, did not participate in the tender.
The winning bidders are required to pay half of the cost of their spectrum upfront, and the remaining 50% over five years at a rate of 3% over Libor.
