KARACHI: The Pakistan Telecommunication Authority (PTA) on Thursday issued an information memorandum (IM) for auction of wireless local loop (WLL) licences in Azad Kashmir (AJK) and Gilgit Biltistan (GB), which would be held on December 4.According to the IM, PTA is planning to undertake an auction to award licenses/rights to use spectrum in the 1,900 MHz and 3.5 GHz bands with the mandate to establish, maintain and operate WLL services across AJK and GB.
The process of award is titled “Auction of available frequency for WLL in 1,900 MHz and 3.5 GHz for existing and new entrants.” PTA invites all the existing FLL, WLL, LDI, mobile and CVAS licensees in Pakistan.PTA sets Rs 55.81 million base price for 1,900 MHz in TR-I Mirpur for 2 slots of 5 MHz, Rs 11.96 million in TR-II Muzaffarabad for 2 x 5 MHz and Rs 7.98 million in TR-III Northern Areas (GB) for 2 x 5 MHz. Similarly, the base price for 3.5 GHz spectrum band with available quantity of 30 MHz, PTA sets Rs 7.98 million in TR-I Mirpur, Rs 3.19 million in TR-II Muzaffarabad and Rs 3.19 million in TR-III northern areas (GB) while PTA mentions that no lots would be sold at a price lower than the above said prices. If the overall spectrums demand from the sealed pre-bid deposit form can be accommodated within the offered spectrum, PTA would award the spectrum rights to the qualified applicants directly on the base price. The licensee shall pay the annual Universal Service Fund to the government, an amount equivalent to 2% of the licensee’s annual gross revenue. The licensees have to pay initial license fee of $2,000 for TR-1 and TR-2 while $1,000 for TR-3. If all designated spectrums herein are sold out in auction, no related WLL auction would be carried out for another 24 months period in AJK and GB, starting from date of this auction, added PTA.
In the previous auction, which was held in November 2008, Pakistan Telecommunication Company Limited (PTCL) bought one block at the highest bid of Rs 10 million while other was withdrawn because there was no second bidder for the TR-1. For Muzaffarabad (TR-2), PTCL gave the highest bid of Rs 4 million followed by Wateen, which matched the price. For Northern Areas (TR-3), Wateen offered highest bid of Rs 4 million and second block went to PTCL for the same price.