Pakistan Telecommunication Authority (PTA) is all set to hold auction for Next Generation Mobile Services (NGMS) spectrum (3G/4G) on May 16, 2017 targeted to generate over Rs 32 billion non-tax revenue. PTA has released Information Memorandum (IM) for the auction of spectrum in the 1800 MHz range and to grant the successful bidders rights to establish, maintain and operate 3G/4G network and to provide services across the country.
The IM sets out the rules, process, planned timetable and other background information to help prospective applicants to decide if they want to participate in the NGMS auction. The IM published by PTA states that consultation period will end on April 19, notification of changes to the NGMSA rules and procedures (if any) will be made on April 24, information session for prospective bidders will be held on April 28, deadline for prospective applicants to submit application forms with pre-bid deposits is set at May 5.
PTA will notify qualified applicants on May 9, information package will be provided to qualified applicants on May 11, mock auction for qualified bidders (if required) will be held on May 12 while the auction is scheduled to be held on May 16, 2017.
The NGMSA is for licenses to use spectrum from internationally harmonised band in 1800 MHz band. The spectrum included in the NGMSA comprises 10 MHz of paired spectrum in the 1800 MHz band, however exact lot details will be finalized later as per the re-farming plan. A license for spectrum awarded in the NGMSA provides exclusive right for use of the frequencies assigned to that operator. The services permitted are governed by each specific license. New spectrum will be for 14 telecom regions of Pakistan, excluding AJK Gilgit-Baltistan (GB) while the base price for the spectrum is set at $295 million. New as well as current operators can bid for the spectrum.
The successful bidder will be given a license to establish, maintain and operate a technology neutral network and offer licensed services in Pakistan excluding AJ&K and GB to consumers for meeting the roll out and quality of services (QoS) obligations.
The licensee will have to take all possible measures while installing its network to ensure that the out-of-band emissions are under the permissible limits defined by ETSI, ANSI, ITU, IEC standards. The licensee will have to take all possible measures while installing its network that ensures that there is no harmful interference to other licensees' networks.
The assigned spectrum must not be used to provide fixed services or any services not explicitly authorised under the license conditions. The license shall be personal to the licensee and shall not be assigned, sub-licensed to, or held on trust for another person, without the prior written approval of PTA.
The 15 years' license to use the NGMS spectrum will be awarded by means of a two-stage auction process. Stage-1 of auction (prequalification stage including a pre-bid offer) - in this stage, applicants will be required to provide information as per the application form. Each applicant will also be required to submit along with its application an irrevocable pre-bid deposit form. The pre-bid offer shall comprise 2x10 MHz of spectrum in the 1800MHz band. Applicants will be required to submit a pre-bid deposit at this stage for 15 percent of the base price.
The information submitted by applicants will be assessed by PTA and those considered suitable for participation and have submitted the correct pre-bid deposit will be informed as per the timelines set, that they have qualified for the next stage.
Stage- 2 of auction- in this stage, if only one application is received from bidder, PTA will award the spectrum rights to the qualified applicant directly on the base price. However, PTA reserves the right to modify, amend, supplement, cancel, annul or replace any or all of the auction process at any stage without incurring any liability to the affected bidders or any obligations thereunder what so ever. Where multiple bidders have submitted the applications, PTA will conduct bidding to assign the spectrum rights.
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