The National Assembly Standing Committee on Information Technology (IT) has termed the auction for 3G licences a non-competitive affair and decided to present a privilege motion against the Ministry of IT in the National Assembly for its alleged failure to incorporate the recommendations of the NA committee over the 3G Policy.
The committee decided to call the Competition Commission of Pakistan (CCP) chairman to find out weather or not 3G auction was competitive. It also decided to invite Privatisation Commission to discuss the privatisation of PTCL and its agreement.
The Committee expressed serious reservations over 3G Policy of Ministry of Information Technology, asking why the government shut the door on new companies and was not ensuring maximum competition for wining of defunct license through auction before March 2013.
The committee headed by PML-N member National Assembly Muhammad Barjees Tahir met on Thursday. Its members were of the opinion that the recommendations of the committee had not been incorporated in the 3G Policy.
Anusha Rehman Khan, the PML-N legislator, said the government had made 3G auction policy keeping in view the Sale Purchase Agreement (SPA) with Etisalat, but the company had failed in fulfilling its obligations to pay about $800 million to the government. "The ministry of IT and other government functionaries have ignored the recommendations of the standing committee over 3G-policy," Khan said.
She added that unfortunately, the auction for 3G licences had been planned against the national interest. It was in the interest of current operators of cellular companies and there was no room for any new company. The existing operators didn't have the capacity to invest any more in the country while the government shut the door on any new company.
"During SPA between the government and Etisalat, it was decided that the government would not allow any new telecom operator by 2013," she added. A Member Telecom, however, told the committee that it was right time for introducing 3G technologies. He said the policy was made to give an opportunity to existing operators as well as new operators who were willing to start operations after March 2013. After March 2013, the SPA with Etisalat would expire and then new operators could enter the telecom industry, he added.
Chairman of the Committee Muhammad Barjees Tahir and Anusha Rahman questioned the ministry and PTA officials over what they termed a complicated auction process. The PTA Chairman Dr Yaseen Malik, said if new operators allowed to function before March 2013, the matter (auction of 3G) could challenged by someone in he court of law, which would further delay the introduction of modern technology. Anusha Rahman asked why the government was afraid a litigation, particularly from Etisalat side. She said that company had totally failed to fulfil its commitment while the government still adhered to the SPA accord.