Cellular license renewal, spectrum auction: PTA shortlists seven consultants for calculation of base price

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has shortlisted seven consultants/consulting firms after technical evaluation for the calculation of base price/benchmark for cellular license renewal and additional spectrum auction in 1800 and 2100 MHz bands, it is learnt.

The shortlisted applicants will go into financial evaluation stage and the consultancy will be awarded to the lowest bidder and based on the evaluation criteria as mentioned in the Request for Proposal (RFP). The consultant/firm will be hired by next week, sources added.

The PTA had set deadline of October 30, 2020 for submission of bids for hiring consultant for spectrum auction and license renewal which was further extended to November 30, 2020. Sources revealed that the PTA received good response and around seven consulting firms almost all international firms applied against the RFP. The auction committee evaluated their technical bids and all the firms have qualified to the next stage of financial bids.

The consultancy would be awarded to the lowest bidders as per the rules, sources added. The PTA has initiated the process of auctioning the available spectrum from 1800 and 2100MHz bands to cellular mobile phone operators aimed at improving the quality of services and generating revenue.

The auction drive entitled, "Spectrum Auction Pakistan 2020-21" is focused on regulatory consistency for the investors, mobile broadband proliferation, and future sustainability of the cellular mobile communication sector with an overall economic growth of Pakistan.

The consultant(s)/consulting firm(s) will carry out the assignment in light of the detailed 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 telecom market; focused on regulatory consistency for the investors, mobile broadband proliferation, and future sustainability of 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, 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 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: (a) conduct study/assessment of the available/assigned spectrum in 900, 1800,and 2100 MHz in the AJ&K and GB; international best practice on spectrum auctions/renewals and assignments keeping in view the aspects; (b) 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.

Copyright Business Recorder, 2020