Auction of 3G licences in October

ISLAMABAD: Pakistan plans to issue its first licences for third-generation (3G) mobile telecom services in October, hoping to generate nearly $1 billion through an open auction, government officials said on Thursday.

The fifth-largest cellular market in Asia — behind China, India, Indonesia and Japan — had more than 107 million mobile users in April,
almost 65 per cent of all Pakistanis.

“A committee of the cabinet has agreed in principle to launch 3G services as soon as possible without any conditions,” a senior official of
the Ministry of Information Technology told Reuters.

The Economic Coordination Committee is expected to approve the auction in the first week of August. The auctions are expected to be held in mid to late October, another official said.

The officials, who spoke on condition of anonymity, said the number of licences to be issued would depend on the availability of 3G spectrum.

“For instance, if we have 30 MHz, it could be three licences of 10 MHz each. If we have 20 MHz, it will be two licences,” one official said.

The Pakistan Telecommunication Authority (PTA) would advise the ministry on the available spectrum in August.

Pakistan’s existing operators are Mobilink, Telenor, Warid Telecom, Zong and Ufone.

Mobilink leads the market at 32.96 million subscribers, followed by Telenor at 26.06 million, according to PTA. The officials did not specify if the licences would only be offered to existing operators, but it is unlikely they would be offered to new operators.—Reuters