The telecom infrastructure

Foreign investments play a pivotal role in the development of a country's economy. It is especially true with the developing or underdeveloped states where there is a frail and unstable economy and a fragile socio-political system.
The ongoing liberal and business-friendly investment policy set in motion half a decade ago is expected to get a further boost by its designer and executer, now the new Prime Minister of Pakistan, Shaukat Aziz.
He, through his money management acumen, averted a catastrophic collapse of Pakistan's economy and has stabilised it and pushed it in the right direction.
The Pakistan Telecommunication Authority (PTA), following the government's liberal and business-friendly investment policy is laying optimum emphasis on the implementation of its deregulation policy with a pressure-free and autonomous role.
It has well-deservedly earned a record 14 billion rupees for the exchequer through the spectrum auction recently. In return, the PTA has also offered an attractive package of incentives and vast lucrative opportunities to investors. This accomplishment, is indeed a quantum leap for the PTA.
This is not a maiden achievement of the authority. Just two months ago, in May, it got an enormous chunk of about US $582 million by way of issuing two cellular phone licenses to companies of international repute in a transparent bidding process.
This great job earned the PTA a congratulatory visit by the Head of the State, President General Pervez Musharraf. The authority's current accomplishment, another feather in its cap is worthy of great praise. Again it is an historic happening.
The bidding for 14 telecom regions for the grant of Wireless Local Loop (WLL) licenses with the conclusion of the auction of spectrum in Southern Telecom Region-V (STR-V) and Karachi Telecom Region (KTR) was completed in the third week of last month.
The bidding for the allocation of spectrum in 1.9 GHz, 450 MHz, 479 MHz and 3.5 GHz captured huge investment and about 108 WLL licenses are expected to be issued for operation.
The PTA Chairman Major General Shahzada Alam Malik (Retd) hopes a revolution in the telecom sector would happen emanating from the launching of the Wireless Local Loop (WLL) services in Pakistan and the process would fetch huge investment.
He commented that the completion of spectrum auction was the culmination point in the deregulation of the telecom sector.
Meanwhile, in the bidding of spectrum in 1.9 GHz in the Southern Telecom Region-V (STR-V) one block was taken by the PTCL at the highest bid of Rs 79 million, while the two other blocks were secured by M/s Telecard and M/s World Call. In the bidding for spectrum of 450 MHz, both the available carriers were won by M/s Dv Com at the highest bid of Rs 32 million each.
Only one block in the frequency of 479 MHz was available for which M/s World Call offered the highest bid of Rs 11 million. Seven blocks in the frequency of 3.5 GHz were available and one each was obtained by M/s Telecard, M/s DV Com, M/s PTCL, M/s World Call, M/s Burraq Telecom, M/s Warid WLL and M/s Sachal Soft Tech at the base price of Rs 580,0000.
Out of three blocks in KTR, M/s PTCL gave the highest bid of Rs 1.204 billion for one block in the spectrum of 1.9 GHz while the other two blocks were allocated to M/s. Telecard and M/s DV Com at the matching cost. In 450 MHz band, three carriers were available out of which two carriers were allotted to M/s World Call at the highest bid of Rs 88 million for each carrier, while the third carrier was taken by M/s Great Bear at the same cost.
In the frequency of 479 MHz, only one block was available which was obtained by M/s World Call at the highest bid of Rs 31 Million. M/s Microtech Links gave the highest bid of Rs 37 million for one block in the spectrum of 3.5 GHz, while six other blocks were awarded to each M/s Telecard, M/s DV Com, M/s PTCL, M/s Burraq Telecom, M/s Warid WLL and M/s Cyber Internet.
The immaculate and transparent auction process and snag free procedure was adopted by the PTA for the allocation of frequency in various bands for the grant of WLL licenses as was done in the case of cell phones.
PTA has already earned a good name in the business and is attracting investment from all corners of the globe and maintaining its investor-friendly deregulation policy.
As a matter of fact, the PTA's past achievement has cast an exalting influence on its future business and saved it from insipidity. The whole exercise, which started with the distribution of Information Memorandum, containing all the relevant details and information about the procedures, guidelines and modus operandi to be adopted by the PTA for the grant of licenses to the fixed line and WLL telecommunication service providers was strictly followed by the PTA.
There was no deviation from the standard practice chalked out by the authority which has brought laurels for PTA as transparency was evident throughout the bidding process.
There was not a single objection from day one of the auction to the last moment of the process from any group or party who participated in the auction of spectrum.
As to the technology, Wireless Local Loop (WLL) service is the latest and best suited to the prevalent environment in Pakistan and it has proved its efficiency and success in countries with socio-economic conditions similar to Pakistan.
The service is expected to greatly benefit the low-income groups and inhabitants of the rural and remote areas. PTA has assured full co-operation to the investors, telecom operators and CEOs of telecom companies in the launching of their business.
In the wake of huge investments, the investors turn entrepreneurs will set up their own establishments resulting in employment for Pakistanis in thousands.
There will be more competition, high quality of service standards, cheaper charges and scanty affordable bills.
With the advent of new operators, call rates for telephone will substantially decrease leading to enduring and sustainable relief to the consumers, which is the basic function of PTA as the guardian of consumers' interest.
By implementing the deregulation policy in letter and spirit, the PTA is accomplishing the economic objectives of the government with flying colours and of course the pro bono publico.