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The government has given one month extension to mobile phone operators in renewal of licences to avoid disruption in services, as licences of two mobile operators expired Saturday. This was revealed by Chairman Pakistan Telecom-munication Authority (PTA) Major General Amir Azeem Bajwa (Retd) while talking to Business Recorder. The cellular mobile licences of Pakistan Mobile Communications Limited (Warid/Jazz) and Telenor Pakistan Limited (Telenor) were due to expire on May 25, 2019 and due for renewal. The licence of China Mobile Pakistan (CMPak Zong) is due for renewal on October 22, 2019.
Bajwa said that according to the policy directives, the services of both mobile companies would not be suspended as the government has given them extension till June 25, 2019.
The PTA chairman further said that roll-out obligations and quality of services would be upgraded in the renewal of licences. He said if an operator had to cover Tehsil headquarters earlier only, now they would have to cover 100 percent Tehsil with data and voice services. The policy directive stated, "The payment (100 percent or 50 percent upfront as the case may be) will be due on June 25, 2019. In case, the spectrum is utilised till June 25, 2019 and requisite payment is not made, the proportionate amount will be charged, for the said period, in addition to any legal action as per the act, rules and policy, etc."
The renewal price for the right to use frequency spectrum included in the licences being renewed will be in accordance with per MHz price benchmarks from frequency spectrum auctions of 2016 and 2017 i.e. per MHz price for frequency spectrum in 900 MHz and 1800 MHz will be USD 39.5 million and USD 29.5 million, respectively.
The Ministry of Information Technology and Telecommunic-ation has issued policy directives to the PTA and Frequency Allocation Board (FAB) for renewal of three cellular mobile licences, of which the government is projecting to generate $1.37 billion revenue.
The tenure of the renewed licences will continue to be 15 years. Payment terms will be 100 percent upfront or 50 percent upfront with remaining 50 percent on five equal annual instalments on LIBOR+3%. The renewal fee will be paid in US dollars with the option to pay in Pak rupee, which will be calculated at the market exchange rate applicable at the time of payment, as per precedence of earlier cellular licences issuance/renewals.
The licences renewed under this policy directive will be technology neutral in line with existing GoP policies. Provisions for spectrum trading/sharing as per the approved regulatory framework for such sharing/trading will be incorporated in the renewed licences by the PTA.
Terms and conditions relating to coverage, enhanced Quality of Service (QoS), etc, under the renewed licences, will be incorporated by the PTA in line with the Telecom Policy 2015 and as per applicable regulatory practices. The Frequency Allocation Board will provide options in lieu of cross border interfered spectrum to CMPak in 900 MHz band included in its current licence.

Copyright Business Recorder, 2019

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