The Pakistan Telecommunication Authority (PTA) has reportedly told the finance ministry that up to US$500m could be raised from the sale of licences left over from the recent auction.
In late April, four local operators acquired 3G licences for a total…
The Pakistan Telecommunication Authority (PTA) has reportedly told the finance ministry that up to US$500m could be raised from the sale of licences left over from the recent auction.
In late April, four local operators acquired 3G licences for a total of US$903m. One of them, China Mobile’s Zong, spent a further US$210m on a 4G concession.
The regulator had hoped to attract a new entrant, in particular from abroad, during the auction. A 3G licence exclusively kept for a newcomer is therefore expected to be sold with a base price of US$291m in 2014 or 2015, according to local publication Business Recorder.
Another 4G licence, with a base price of US$210m, will also be auctioned.
The process is likely to be more straightforward and quicker than the previous one, which had been in the pipeline for years.
The PTA had been trying to allocate 3G, and later 4G, frequencies since 2007 but a variety of regulatory issues held up the process.
The total amount raised in the April auction was below the US$2bn expected by finance minister Ishaq Dar. 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.
The country’s fifth and smallest player, Warid Telecom, did not participate in the tender.
