ISLAMABAD: The federal government has deliberate auctions of telecom spectrum in numerous bands to fetch $300-$500 million within the remaining months of the present fiscal yr to stave off a steadiness of cost disaster and assist shore up depleting overseas forex reserves, sources mentioned on Monday.
“An alternative choice is to push Etisalat to pay the excellent dues of $800 million on account of the privatisation of the PTCL (Pakistan Telecommunication Firm Ltd), which stays unpaid even after nearly 20 years,” a supply mentioned.
Pakistan requires {dollars} to avert a full-blown disaster. The final regime didn’t muster up the required assist within the final spectrum public sale held in September 2021 wherein solely Ufone entered and acquired 28.8 MHz for $269 million.
Different gamers didn’t take part within the public sale owing to a wide range of totally different causes. Now it’s being explored whether or not the spectrum, which is on the market in bands of 900 MHz, 1300 MHz, 1800 MHz, and 2100 MHz, can lure patrons and generate {dollars}.
There may be plenty of spectrum obtainable and a few of it has up to now been untouchable in Pakistan. Out of accessible spectrum of fifty MHz in numerous bands, if the federal government was in a position to promote 30 MHz, it might generate $500-$600 million earlier than June 30, 2022.
“The session course of has been underway and a few agency steps might be taken after Eid holidays because the Ministry of Info Expertise would possibly transfer a proper proposal to discover this obtainable spectrum public sale to potential present patrons,” a senior official confirmed whereas speaking to The Information.
The official mentioned to start with the federal government must represent an Public sale Supervisory Committee underneath the chairmanship of Federal Minister for Finance Miftah Ismail to maneuver forward with the spectrum sale at an accelerated tempo.
“One of many choices could possibly be utilising the previous base worth of $29 per MHz, being finalised by the marketing consultant on the event of the final public sale for provision of Subsequent Era Cellular Providers,” the official added.
Speaking to The Information, Pervez Iftikhar, former CEO Common Service Fund and telecom professional, mentioned there was a dire have to public sale obtainable spectrum to telecoms as a result of it will assist obtain the target of Digital Pakistan.
“The spectrum shouldn’t be auctioned to simply fetch cash but in addition to deliver new applied sciences and creation of jobs,” Iftikhar mentioned. “The federal government ought to deliver down the bottom worth of public sale as a result of increased worth discourages gamers from making their enterprise plans viable.”
He mentioned different robust circumstances comparable to charging KIBOR plus 3 % on remaining 50 % installment wanted to be revisited, upfront 50 % quantity needs to be lowered, allowance for opening Escrow Account have to be withdrawn, and measures facilitating the potential buyers be taken as high precedence.
“The public sale of remaining spectrum at this level of time would complement the upcoming 5G applied sciences in Pakistan so the federal government ought to transfer forward on instant foundation and on the similar time it also needs to soften the circumstances and create a lenient ambiance for attracting the potential purchaser of the approaching spectrum auctions,” the previous USF head mentioned.
