The government completed its 5G spectrum auction in Islamabad on Tuesday, with 480 megahertz sold for $507 million at the end of the third round of bidding.
The three bidders (Zong, Jazz and Ufone) competed strongly at 2,600 megahertz for the key frequency band needed for 5G service. Zong acquired 110MHz, Ufone 180MHz and Jazz 190MHz during the auction.
Pakistan offered 700 MHz for $32.5 million, 1,800 MHz for $16.8 million, 2,100 MHz for $70 million, 2,300 MHz for $10 million, 2,600 MHz for $12.5 million and 3,500 MHz for $6.5 million per lot.
The bidding process was launched in the presence of Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarrar, former IT Minister Syed Aminul Haque and Chairman National Assembly Standing Committee on IT and Telecom along with some members of the committee.
After the first round of bidding, the collected results were opened. The PTA had offered 190MHz in lots of 10MHz each, while the bidders demanded 30 lots. Eleven additional lots were put up for auction for a total of 110MHz. The PTA has decided to increase the offer price of the 2600 MHz band by five percent of its base price.
For the other 5G band, 3500MHz, 28 10MHz lots were offered, but telcos submitted bids for only 20 lots. A pause preceded the second and third rounds of bidding.
Addressing the event, Aurangzeb thanked all the members of the spectrum committee and credited the IT minister for ensuring continuity of the IT policy that resulted in the spectrum auction despite the administration changes.
As for how the auction was going to be “a facilitator,” he said: “I’ve always said that digital is not an end in itself; it’s a means to an end. Faster, cheaper, better; it’s as simple as that.”
And he added: “When we talk about employment, when we talk about [how] the private sector has to lead the country, this is exactly what the government should be doing… providing the ecosystem and helping.
“And of course, as we move towards the new economy, whether it’s AI, blockchain or Web 3.0, all of this will be favored in terms of spectrum availability and as we move towards 5G.”
The Finance Minister also referred to Prime Minister Shehbaz Sharif’s announcement of austerity measures yesterday, saying: “This is where all this becomes extremely critical, in terms of crisis, to move smoothly towards online education. [and] working from home.”
He expressed his belief that greater spectrum and better connectivity would help the country in terms of a “smooth transition as we negotiate the current oil crisis.”
IT Minister Shaza Fatima Khawaja called the auction “perhaps one of the most important days in Pakistan’s history.” He said that during the era of former Prime Minister Nawaz Sharif, Pakistan had entered the era of 3G and 4G for the first time, but no major auctions had been held since then, as a result of which the country was experiencing challenges with connectivity.
Shaza added that apart from the introduction of 5G for the first time in Pakistan, the nation would also see an increase in the quality of 4G connectivity.
He said the Internet formed the basis of all aspects of life, “from personal life to economy, agriculture, industry, to national security… a fast and reliable Internet that is available to all Pakistani citizens has become a fundamental requirement for us.”
The IT minister compared Pakistan’s spectrum availability with that of Bangladesh, which despite having only two-thirds of Pakistan’s population had 600 MHz availability as against Pakistan’s 274 MHz. He also said that Pakistan had used this 274 MHz since 1997.
“Even if we just successfully conduct the basic auction, our spectrum availability will double,” he said.
“I know people’s first question is always ‘When will we feel the impact of this?’ So, in four to five months, you will see significantly better quality in your 4G services,” he said, adding that efforts are being made to ensure the introduction of 5G in the five big cities within five to six months.
Shaza praised former IT Minister Aminul Haque’s efforts for laying the groundwork for the spectrum auction. He also highlighted Prime Minister Shehbaz’s “personal drive” and his vision of ‘Digital Nation Pakistan’, saying, “All these things are possible because of his drive and dedication.”
The minister said that apart from the spectrum auction, the government was working on three other important segments of digitalization: satellite internet to provide coverage in remote and inaccessible areas; linking Pakistan with international cable systems to make it an Internet transit country and expanding fiber networks in the country.
In this sense, the government had already abolished rights of way, becoming the first country in Asia to do so. This would improve the quality of connectivity across the country and reduce the cost of internet in the long run, he said.
During a briefing held on Monday, the IT minister said efforts had been made to ensure that all three stakeholders benefited from the spectrum auction. He added that simulated exercises have been completed with the three participants.
Telecoms companies say spectrum is invisible but crucial infrastructure as it drives digital connectivity, the foundation of modern life.
More to follow
Source: https://www.dawn.com/news/1980473/faster-cheaper-better-480mhz-sold-for-507m-as-5g-spectrum-auction-concludes