The government has officially agreed for the 3G-4G spectrum auction for allocating the one block of 10 MHz paired spectrum in 850 MHz band at the base price of USD $395 million.
This base price is set after a detailed evaluation of the data, based on the market demand study of the PTA and the comparison of the business with the international markets.
The 3G-4G spectrum which was left unsold in the Next Generation Mobile Services (NGMS) auction in 2014 will now be auctioned with complete transparency. On the proposal of the Advisory Committee, the Ministry of Information Technology and Telecommunication has issued an official authoritative instruction to the Pakistan Telecommunication Authority (PTA) to organize the spectrum auction.
As reported by the Daily Times, one block of 10 MHz paired spectrum 824-834 (Uplink) and 869-879 (Downlink) in 850 MHz band will be sold. All the telecom operators will be allowed to take a part in this auction, which will be organized by the PTA in June, this year. The license will be issued to a the highest bidder for the term of fifteen years.
The current step of auctioning the 850MHz spectrum is expected to prove a significant milestone for the telecom operators to expand the coverage of their networks in every corner of the country.
However, some sources say that it is not a good decision by the PTA to sell the unsold spectrum before the auction of new frequencies. Because, after the merging of Mobilink and Warid Telecom, there is no other major player in the market that will purchase this spectrum. The other telecom operators are going in huge loss.
What is 850 MHz band 3G-4G Spectrum?
850 MHz band is a GSM frequency. It is a next generation mobile communication (3G4G Spectrum) license that was left unsold in the 2014 auction of 3G and 4G licenses.