Launch date for 3G technologies auction still not verified
Saturday, November 26th, 2011 7:00:44 by Wajahat Javed
Launch date for 3G technologies auction still not verified
Yousaf Raza Gilani, Prime Minister Pakistan, had shown his consent with the implementation of 3G policy in the country in a meeting held on Wednesday, November 23. He ordered to form a Cabinet Committee that will see through the
whole process.
During the meeting it was decided that foreign as well as local players will be called for an auction of 3G technology. The main purpose to hold the licence auction was to raise Rs75 billion by February 2012. This amount will be
used for budget financing.
However, till today no launch date of auction has been verified by Cabinet Committee. The hurdle in all this has been Pakistan Telecommunication Company Limited agreement with Etisalat that forbids the auction of a spectrum until
March 2013. Etisalat owns 26 percent of total shares of PTCL and is in a position to dictate its terms as they have the backing of Ministry of Information Technology.
As per a member of Cabinet Committee, the commission decided to avoid litigation with Etisalat and come up with the novel solution.
An official of the information technology ministry said that as part of the solution the government would first auction defunct Instaphone licence to new and old operators as the old licence. If a new operator wins the bid, it
will become the country’s sixth operator and would be considered an old service provider, making it eligible to participate in the 3G auction and offer 3G services before March 2013.
A finance ministry official said, “The purpose of declaring March 2013 restriction was to let the bidder know when he will be able to operate. It does not mean that payments will be made in instalments.”
In short a company winning the auction can start its operations after March 2013 but have to pay the entire amount before the starting date. The exact amount to be paid by the winning company cannot be determined, however, the
finance ministry hopes to get at least Rs 75 billion.
Short URL: https://www.newspakistan.pk/?p=4833
Posted by Wajahat Javed
on Nov 26 2011. Filed under Business, Pakistan.
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