AJ&K, GB: PTA starts process of cellular licence renewals, additional spectrum auction

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has initiated the process of cellular license renewal and additional spectrum auction in 1800 and 2100 MHz bands in Azad Jammu and Kashmir and the Gilgit-Baltistan.

The authority has decided to hire consultant(s)/consulting firm(s) for cellular license renewal and additional spectrum auction in Azad Jammu and Kashmir and Gilgit-Baltistan and has invited Expression of Interest (EoI) from local (Pakistan, AJ&K and GB) consultant(s)/consulting firm(s) who are on the “Active Taxpayers’ List” of the Federal Board of Revenue (FBR), Pakistan.

The consultant(s)/consulting firm(s) will carry out the assignment in light of the detailed Request for Proposal (RFP), which includes but not limited to: (a) Cellular License Renewal; (b) Additional Spectrum Auction; and (c) Spectrum Rationalization Plan.

The objective of the consultancy is to devise a strategy for existing Mobile Cellular License Renewal; and Additional Spectrum Auction in 1800 and 2100 MHz bands in the light of international best practices suited for the AJ&K and the GB’s Telecom market; focused on regulatory consistency for the investors, mobile broadband proliferation, and future sustainability of the cellular sector with an overall economic growth of region.

Further, the consultancy is aimed at spectrum pricing benchmarks for renewal and auction with the future projections of next 3x years, targeting to achieve overall economic growth and incentivise foreign investment, considering impact of past benchmarks and other relevant factors.

One of the objectives is also Spectrum Rationalization/Re-adjustment Plan with an objective to maximise efficient spectrum utilisation in line with the international best practices for assigned spectrum.

The aim will be to assign spectrum in a manner to make block size of contiguous frequencies by re-farming existing assignments to make standardised block sizes.

Further, transparent and competitive spectrum auction plan with an optimal outcome, promoting mobile broadband proliferation, growth of cellular services, and preventing collusion among the bidders is required as per the consultancy assignment.

The strategic vision of the PTA is to create a fair regulatory regime to promote investment, encourage competition, protect consumer interest, and ensure high quality Information and Communication Technology (ICT) services.

The scope of work will include the following: conduct study/assessment of the available/assigned spectrum in 900, 1800, and 2100 MHz in the AJ&K and the GB; international best practice on spectrum auctions/renewals and assignments keeping in view the aspects; Consultation with relevant stakeholders including cellular mobile operators, relevant governments and Frequency Allocation Board (FAB) HQs to assess the telecom market; its regulatory, financial and technical opportunities/challenges as specified.

Further, it will required the development of policy recommendations for Cellular License Renewal and Spectrum Auction Methodology comprising terms and conditions of licenses to be renewed; auction design, spectrum base price, rationalisation plan and any other relevant terms and conditions.

Moreover, Development of Information Memorandum including license template and assist in conducting spectrum auction as per agreed auction design.

The specific deliverables as per the timelines mentioned in contract agreement i.e. (i) A report on existing Cellular Sector Analysis with focus on spectrum assignments.

Report will include recommendations for cellular license renewal, possibility of new entrant, spectrum auction and rationalisation along with timelines for auction based on international best practices and stakeholder consultation applying technical, commercial and due legal diligence.

(ii) A report on Spectrum valuation of 900, 1800 and 2100 MHz band with future projections of 3x years.

The determination of prices shall be done under strict confidence and shall be provided in sealed envelopes to the client.

(iii) A report on auction methodology design and process for the spectrum assignment.

(iv) Prepare Policy Recommendations (comprising renewal terms and conditions, spectrum blocks for auction, base price, auction design, spectrum capping, spectrum floor, spectrum rationalization plan, duration of assignment, QoS, coverage, payment terms, auction participants and other relevant terms and conditions).

(v) Prepare Information Memorandum along with license template including information mentioned at (iv) above, and detailed auction design methodology, round increments, earnest money; Assist the authority in developing and issuing necessary clarification as and when required to the potential bidders; prepare bid documents and other relevant documents ancillary to the auction process.

The consultant(s)/consulting firm(s) will carry out the assignment in accordance with Request for Proposal (RFP) document.

Consultant (s)/consulting firm(s) will be required to have relevant technical, financial, legal and regulatory expertise to successfully carry out the assignment.

Method of selection will be quality and cost-based, interested consultant(s)/consulting firm(s) shall submit proposal for consultancy marked as “Cellular License Renewal and Additional Spectrum Auction in AJ&K and GB” complete in all respects as per the parameters laid down in the RFP.

The deadline for submission of proposal is 20th October 2020.

The Technical and Financial proposals for consultancy will be submitted in a single package containing two separate sealed envelopes, marked as "Financial Proposal" and "Technical Proposal".

The RFP document is available on the PTA website, www.pta.gov.pk, and the PPRA website, www.ppra.org.pk.

The proposal will be opened at the PTA HQ on 20th October 2020.

The PTA, a regulatory authority for the telecommunication sector in Pakistan and Azad Jammu and Kashmir (AJ&K) and Gilgit-Baltistan (GB) was established as a body corporate under Section 3 of the Pakistan Telecommunication (Re-Organization) Act, 1996 as enforced in the Azad Jammu and Kashmir by virtue of the AJ&K Council, Adaptation of Pakistan Telecommunication (Re- organization) Act, 2005 and in Gilgit-Baltistan by virtue of the G-B Council adaptation of Laws Act, 2012, by the Azad Jammu and Kashmir Council/G-B Council.

The PTA regulates the establishment, operation and maintenance of telecommunication systems and the provision of telecommunication services in the AJ&K and the GB.

It is empowered to undertake consultancy on such terms and conditions as it may determine for licensing radio frequency spectrum for any telecommunication system and service, as it may from time to time specify.

Copyright Business Recorder, 2020