The Ministry of Information Technology and Telecommunication (MoIT&T) has issued a policy directive to the Pakistan Telecommunication Authority (PTA) for the auction of Next Generation Mobile Services (NGMS) spectrum in Azad Jammu and Kashmir (AJ&K) and Gilgit-Baltistan (GB), with a base price of $0.87 million for 21 MHz (1 MHz paired) spectrum in both the 1800 and 2100 MHz bands.
The spectrum auction will produce income while also assisting in the enhancement of mobile broadband services.
Cellular Mobile services are currently available in AJ&K and GB from five cellular operators, including a Special Communication Organization (SCO). During the COVID-19 epidemic, there was a huge increase in the demand for mobile broadband services. The growing reliance on mobile broadband services required the need for extra spectrum to suit the connectivity needs of the people of AJ&K and the United Kingdom.
The policy directive detailed that after the consideration of the recommendations of the Auction Advisory Committee constituted by the federal government, based on the inputs from the Consultant, PTA, and the Frequency Allocation Board (FAB) have issued the policy.
It is issued in accordance with Section 8 of the Pakistan Telecommunication (Re-organization) Act, 1996, as amended by the Azad Jammu & Kashmir Council Adaptation of Pakistan Telecommunication (Re-organization) Act, 2005 (including all amendments made from time to time) and the Gilgit-Baltistan Council Adaptation of Laws Act, 2012 (including all amendments made from time to time).
The policy states:
- A transparent, competitive process shall be formulated by the PTA for auctioning the 2×16 MHz spectrum in the 1800 MHz band and the 2x30MHz spectrum in the 2100 MHz as made available by the FAB.
- The base price for the 2×1 MHz (1 MHz paired) spectrum in both the 1800 and 2100 MHz bands is USD 0.87 million respectively.
- Additionally, the 2×10 MHz spectrum earmarked by the FAB for the SCO in both the 1800 and 2100 MHz bands is approved for assignment to the SCO.
- The PTA will issue an Information Memorandum specifying the detailed procedure of the auction, including the eligibility criteria and steps for participating in the auction process. The auction will accordingly be conducted by the PTA in the minimum possible time after the issuance of the Policy Directive by the Federal Government.
- The spectrum assignment will be ‘Technology Neutral’ and usable for all the existing and upcoming advanced generations/technologies within the applicable policy framework of the Government of Pakistan.
- To ensure the optimal utilization of the radio frequency spectrum, the PTA, in consultation with the FAB shall endeavor to provide each CMO with the opportunity to acquire such additional spectrum that will enable it to hold, in total, the spectrum in multiples of standard 5 MHz paired spectrum blocks.
- Post spectrum auction, all the CMOs will be required, within a reasonable time as determined by the PTA, to comply with the rationalization plan as may be issued by the PTA in consultation with the FAB to ensure the optimal utilization of contiguous spectrum holdings.
- The existing CMOs and New Entrants are eligible to participate in this auction.
- Transactions related to the Spectrum Auction (spectrum fee) shall be US Dollar-denominated but the amount shall be paid either in US Dollars or in equivalent Pakistani Rupees. For the purpose of conversion, the National Bank of Pakistan TT selling rate prevailing on the date preceding the date of payment shall be used.
The terms of payment will be:
- Minimum 50 percent upfront payment within one month of the auction date, with the remaining to be paid in 10 equal installments within 10 years.
- If an auction winner intends to pay the remaining balance liability on account of the initial spectrum fee at any time before the end of a decade, it will be acceptable and without any pre-payment penalties.
- The PTA shall transfer the auction proceeds to the AJ&K and GB Councils less the administrative charges, cost of regulation, and consultancy charges within 30 x days from the receipt of the said fee.
The tenure of the frequency assignment will be for 15 years, and the spectrum won through the auction process will be incorporated by the PTA into the renewed cellular licenses (due for renewal in June 2021 i.e. of Jazz, Telenor, and Ufone).
The term for the CMPAK licence, which will expire in August 2022, may be changed by the PTA to harmonise the expiry dates of the cellular licences in AJ&K and GB, with the necessary payments and changes.
The new licences will include provisions for active infrastructure sharing, as well as Spectrum Trading and Sharing, and will go into force in accordance with the authorised regulatory framework.
The PTA will comprise terms and conditions relating to increased coverage and improved Quality of Service (QoS), among other things, in order to boost mobile broadband adoption in the region.
The Policy Directive for Next Generation Mobile Services has been superseded by this policy.
Source: propakistani.pk
