Pakistan’s long-awaited auction of 3G and 4G spectrum is set to take place in April, finance minister Mohammad Ishaq Dar was quoted saying in local press.
The country has been looking to auction 3G frequencies since 2007 but a variety of regulatory…
Pakistan’s long-awaited auction of 3G and 4G spectrum is set to take place in April, finance minister Mohammad Ishaq Dar was quoted saying in local press.
The country has been looking to auction 3G frequencies since 2007 but a variety of regulatory issues have held up the process.
Dar reportedly said he expected bidders from Turkey, Saudi Arabia and Qatar to take part, meaning the country’s five existing operators could face new competition.
The government plans to sell three 10 MHz licences suitable for 3G and two 10 MHz licences for 4G use and is looking to raise at least US$1.29bn. Dar has previously forecasted a figure of around US$2bn.
The base price has been set at US$295m for each of the three 3G licences, although that number is US$4m less for any new entrant, according to the Express Tribune. The two 4G spectrum blocks will be sold for no less than US$210m each.
Winning bidders will be 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, the report said.
Pakistan’s mobile operators at present are VimpelCom’s Mobilink, Norwegian-backed Telenor Pakistan, Etisalat’s Ufone, China Mobile’s Zong, and Warid. All have expressed an interest in acquiring more spectrum.
Earlier this year, Etisalat made a binding offer to acquire Warid.
