PTA to Hold 4G Auction on May 16th, IM Released

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Pakistan Telecommunication Authority (PTA) is all set to hold auction for Next Generation Mobile Services (NGMS) spectrum (3G/4G) on May 16, 2017.

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 NGMSA.

Timeline:

The IM published by PTA indicated below timeline for the auction of spectrun:

  • April 19th: end of consultation period
  • April 24th: Notification of changes to the NGMSA rules and procedures (if any)
  • April 28th: Information Session for prospective bidders
  • May 5th – 4PM Pakistan Time: Deadline for prospective applicants to submit application forms with pre-bid deposits
  • May 9th: PTA to announce qualified applicants
  • May 11th: Information package containing confidential information and instructions to
    participate in the auction is provided to qualified applicants
  • May 12th: Mock Auction
  • May 16th: The auction day

Base Price

Base price for 2×10 MHz block in 1800MHz is set at USD 295 Million.

The NGMSA is for licenses to use spectrum from internationally harmonized band in 1800 MHz band. The spectrum included in the NGMSA comprises of 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 authorized 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.

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