The government has budgeted Rs 75 billion through the auction for 4G spectrum for 2016-17 under the head of non-tax revenue without consulting the Pakistan Telecommunication Authority (PTA), it is learnt. The government has yet to complete the Next Generation Mobile Services (NGMS) spectrum auction (3G) from which Rs 65 billion was budgeted for the outgoing financial year. However, later government revised it to Rs 45 billion, while deciding to go for single frequency spectrum auction in the 850 MHz band with a base price of $395 million on June 20.
The government has budgeted an unrealistic increase for 2016-17 from spectrum auction. Senior PTA officials expressed their inability to comprehend the increase in revenue while saying they were not consulted on the matter. "The price of 4G spectrum may be evaluated by the Finance Ministry, however PTA has no say on the price"; senior officials confirmed to Business Recorder.
The government has rejected most of the demands of telecom operators including withdrawal of different taxes, lifting restrictions on SIM count and offer of two lots each of 2x5 MHz spectrum before the spectrum (3G) auction. Due to this development, major telecom operators except one remained out of the process. Meanwhile, the fifth meeting of the Advisory committee for the auction for unsold NGMS spectrum was held; it was chaired by Minister of State for IT Anusha Rehman. Chairman PTA informed the Advisory committee on the status of the auction process that was launched in pursuance of government policy for auctioning 10+10 MHz of the frequency Spectrum in the 850 MHz band. The Advisory committee was informed that June 01, 2016 was the last day of receipts of the expression of interest and till that time only one bid was received.
Frequency Allocation Board (FAB) also made a presentation on technical aspects of the frequency spectrum involved. The Advisory committee expressed its satisfaction on the process so far being carried by PTA & FAB and asked PTA to proceed with the remaining process and conclude it as per their mandate. The ministry reiterated the resolve of the government to maintain focus on accelerated digitization through proliferation of broadband, and added that the auction for frequency spectrum will be a regular feature of telecom sector activity.
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