Ads given for hiring of int’l consultants: Govt formally kicks start 5G spectrum auction process

ISLAMABAD: The government has formally kicked start the process of 5G spectrum auction in the country with initiating the process of hiring international consultant for release of IMT Spectrum for improvement of Next Generation Mobile Broadband Services in the country.

Sources revealed that the government formally allowed the Ministry of Information Technology and Telecommunication to go for 5G auction in the country.

Following this, the Pakistan Telecommunication Authority (PTA) advertised internationally for hiring consultant envisaging to create a fair regulatory regime to promote investment, encourage competition, protect consumer interest and ensure high-quality information and communication technology (ICT) services.

To undertake the assignment, the expression of interest (EOI) is invited on the basis of the terms and conditions for achieving optimal results through the successful completion of the spectrum auction. The consultant is required to submit an EOI on or before 15th July 2024.

The terms of references (ToRs) are to devise a strategy to maximise the release of IMT Spectrum for proliferation of technology-neutral Next Generation Mobile Broadband Services with due consideration to international best practices suited for Pakistan's economy, society and telecommunications market.

This consultancy will focus on regulatory consistency for the investors, facilitate mobile broadband proliferation, and future sustainability of the telecommunication sector with an emphasis on socio-economic development and benefit of the country. Valuation of spectrum for available bands with the future projections, targeting to achieve overall economic growth and incentivise foreign investment, considering the impact of past auctions, renewals international best practices and other relevant factors.

Further, the ToRs included 5G launch/implementation modelling in the light of international and regional best practices particularly in terms of prospective use cases for Pakistan and viable best practices for monetisation models and investment oriented spectrum auction design to provide an opportunity for both existing operators and prospective new entrants to acquire maximum IMT spectrum to support improved ICT infrastructure and broadband services in Pakistan.

Design shall be focused on innovative regulatory practices with improved investment opportunities for successful launch of latest technologies including 5G etc in Pakistan. It should further facilitate progressive mobile broadband proliferation with emphasis on future sustainability of Telecommunication Sector along with overall socio-economic growth of Pakistan.

Keeping in view these objectives, the scope of work shall include the following: An assessment of the current status and health of Pakistan's telecom market for the adoption of the latest technologies including 5G etc in consultation with all relevant stakeholders (The Consultant shall submit international best practices on each aspect of 5G services covered in this consultancy before submitting its recommendations).

The consultant will advise on needed policy actions and reforms for increased infrastructure investment, broadband proliferation and business/sector sustainability and growth.

Compare Pakistan's existing cellular/IMT spectrum assignments with regional practices and accordingly highlight gap and suggest phase-wise auction of paired spectrum in 700 MHz, 1800 MHz, 2100 MHz bands and unpaired spectrum in 2300 MHz, 2600 MHz, 3500 MHz bands.

Per MHz spectrum price determination for spectrum bands mentioned in (b) above in USD and PKR with future projections of next 3 x years using both demand and supply side models, along with the innovative payment options like flexible/ dynamic installment plan. Scenario-based various options for per MHz price vis-à-vis payment terms, rollout obligations, etc.

Consider the number of operators, tenure of license, regional/national IMT spectrum licensing models, spectrum block sizes, minimum bandwidth per operator, license template including rights and obligations (Network Rollout target, QoSand Microwave backhaul pricing etc), incentives for auction winners with commitment on roll out; and supportive changes to the licensing regime, auction rules and optimum timelines related to the auction process to offer better visibility, preparation and confidence to the investors and facilitate successful adoption of latest technologies including 5G etc in Pakistan.

Further to advise Policy Recommendations for Spectrum Auction comprising auction design and methodology, spectrum base price, duration and any other relevant terms and conditions. It further includes the development of Information Memorandum including license template and assist in conducting spectrum auction as per agreed auction design. Recommendations on coexistence of 1M T bands between IMT/5G and other services including Satellite and Wi-Fi, etc.

Study recent developments in neighbouring countries to identify any potential cross border interference in the auctioned bands with appropriate strategies preferably based on ITU recommendations for interference resolutions such as UL/DL frame synchronization, use of filters etc.

Suggest recommendations based on international standards to limit human exposure to electromagnetic fields and mitigation techniques related to health hazards specifically in denser 5G networks.

Further a report on valuation of spectrum including base price in USD and PKR for paired spectrum in 700 MHz, 1800 MHz, 2100 MHz bands and unpaired spectrum in 2300 MHz, 2600 MHz, 3500 MHz bands with future projections for the next 3x years.

The report will also include the recommended currency for auction. The determination of base prices shall be done under strict confidence and shall be provided in sealed envelopes to the PTA.

A report on auction methodology, design and process for the spectrum assignment (comprising of spectrum blocks for auction, auction design, spectrum caps, spectrum floor, auction participants and other relevant terms and conditions).

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