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ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has notified amendments to Information Memorandum (IM) for spectrum auction for Next Generation Mobile Services (NGMS), while granting a grace period of six months in achieving the throughput Key Performance Indicator (KPI) of 4Mbps.

Sources revealed that the benchmark for technologies standardised for 4G/LTE was an average download data rate of 2Mbps, which would be increased to 4Mbps in two years from the effective date, with equal yearly increase. For upload throughput will be at least 25 percent of download throughput.

However, according to the amendment, a grace period of six months in achieving the throughput KPI of 4Mbps will be granted from 2nd year of effective date for testing; and subsequent improvement by licensee as directed by the authority.

The amended in the IM further noted that if the licensee disputes any outstanding amounts due under this license as decided by the authority, the licensee shall either deposit 50 percent of the disputed amount in an escrow account opened by the authority and on terms specified by the authority or furnish unconditional and continuing bank guarantee, to the satisfaction of the authority, in favour of the authority equal to 50 percent of the disputed amount.

Upon resolution of dispute, the amount deposited in escrow account shall accordingly be paid to the authority or refunded to the licensee along with bank profit accrued thereon during the period amount deposited in escrow account. In case of bank guarantee, the same shall accordingly be encashed or returned to the Licensee. Late Payment Additional Fee (LPAF) shall not apply to the extent of amount deposited in escrow account, however, in case of submission of Bank Guarantee LPAF shall continue to apply on total outstanding dues from due date till date of payment.

The notification further stated that if the payment of pre-bid deposit is being made from sources in Pakistan, it should preferably be made through wire transfer or through RTGS in PTA's Account titled, Pakistan Telecomm. Authority Fund A/C, Account No 3000942222 (IBAN PK39NBPA2221003000942222) maintained with Corporate Branch, National Bank of Pakistan, Islamabad, under intimation to DG Licensing, PTA and reference "Spectrum Auction for NGMS in Pakistan 2021".

As an alternate, in exceptional circumstances where there is technical difficulty in wire transfer/RTGS mechanism, the pre-bid deposit can be made through demand draft or banker's cheque drawn, in favour of the PTA.

The licensee shall pay to the authority an annual Spectrum Administrative Fee (ASAF) in an amount calculated by the authority on the basis of the proportion of access spectrum assigned to the licensee (under this license and any other licences) out of the total spectrum allocated to all cellular mobile operators, to cover 75 percent of FAB's total budgeted expenditure for the next financial year.

The ASAF shall be applicable for the next financial year starting from 1st July every year and is payable in advance latest by 30th June every year.

In case of change in spectrum assignment pursuant to spectrum auction or whatsoever reason, the proportionate basis shall accordingly be revised for calculation of ASAF purposes and accordingly billed.

Copyright Business Recorder, 2021

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