Here’s Everything You Need to Know About The Upcoming Spectrum Auction in Pakistan

The Pakistan Telecommunication Authority (PTA) has invited applications from Pakistani and foreign cellular mobile operators for 12.8 MHz paired in the 1800 MHz band and 15 MHz paired in the 2100 MHz band for technology-neutral Next Generation Mobile Services (NGMS). The PTA has issued an Information Memorandum (IM) that details the rules, process, planned timelines, and other background information for prospective applicants to participate in the Spectrum Auction. ALSO READ MoIT&T Issues Policy Directive for 3G/4G Spectrum Auction The Spectrum Auction is for the use of the spectrum from the internationally harmonized 1800 MHz and 2100 MHz bands. The spectrum included in the Spectrum Auction comprises The 2 x 12.8 MHz of spectrum in the 1800 MHz band will be packaged as one block of 2×5 MHz and 39 blocks of 2×0.2 MHz. Applicants are subject to the spectrum cap of 30 MHz (40 percent of the total spectrum) across the 1800 MHz band. The 2×15 MHz of spectrum in the 2100 MHz band will be packaged as three blocks of 2×5 MHz: In order to avoid asymmetric spectrum holdings and to ensure that all CMOs have a chance to standardize their spectrum holdings in the 1800 MHz band, a spectrum cap has been imposed in the 1800 MHz band to limit the amount of spectrum that can be acquired in the 1800 MHz band in the Spectrum Auction. This is set at 40 percent of all the spectrums in this band (2×30 MHz in total) while considering each CMO’s Existing Spectrum including sub-judice. Given each CMO’s Existing Spectrum in the Band, ALSO READ Telenor Pakistan Committed to Promoting Skills for a Digital Future via EdTech The PTA reserves the right to determine and amend the overall timelines of the Spectrum Auction while taking into account all the circumstances prevailing at the specific time. In order to assist prospective applicants in the preparation of their applications, the table below provides an indication of the intended timelines.   *T0 (5 August 2021) is the date of the publication of the IM. These dates/timelines are subject to change as deemed necessary by the PTA. ALSO READ Celebrities Rally Around TikTok In The Face Of Another Ban In this stage, all the applicants will be required to provide information as per the given Application Form. All the applicants will also be required to submit an irrevocable Sealed-Bid Form along with their applications. In the Sealed-Bid Form and subject to the rules set out in this IM, each applicant will be required to state their interest out of the following spectrum at the Base Price: Three specific blocks of 2×5 MHz in 2100 MHz: All the applicants must state their interest in Product 2 in 1800 MHz if they are interested in acquiring more than 2×4.8 MHz within the 1800 MHz band. They are also are subject to the spectrum cap of 30 MHz within the 1800 MHz band comprising existing spectrum holdings (including any sub-judice spectrum for the purpose of the spectrum cap only) and the spectrum available for the Auction. Applicants will be required to submit a Pre-Bid Deposit at this stage for 20 percent of the cumulative Base Price for the blocks on which they have expressed their interest. The information submitted by the applicants will be assessed by the PTA, and those considered suitable for participation and who have submitted the correct Pre-Bid Deposit will, as per the set timelines, be informed by the PTA that they are qualified applicants. For all the remaining applicants (those that are not qualified applicants), the PTA will return the Pre-Bid Deposit and submitted information within 30 days of concluding the Spectrum Auction process. ALSO READ Bank Alfalah Launches Alfa Payment Gateway to Facilitate E-commerce Payments The PTA will then assess the demand for the spectrum across the 1800 MHz band and 2100 MHz band in the Sealed-Bid Forms from all the qualified applicants. This is to determine whether the total demand for any Category in the Sealed-Bid Form exceeds the total spectrum available in that Category, as this determines the need to move to the Electronic Auction Stage for these Categories. While determining the demand for the 2100 MHz spectrum, the PTA will include any demand resulting from the Eligibility Adjustment in that band. The Eligibility Adjustment is discussed in Section 3.5 as below. The Electronic Auction Stage will be conducted sequentially as: For the avoidance of doubt, a Qualified Applicant need not participate in the Clock Auction of the 1800 MHz spectrum in order to participate in the SMRA for the 2100 MHz spectrum, and vice versa. ALSO READ PTA Directs Telcos to Improve Service Quality Up to Licensed Standards In line with the written consent given by all the CMOs and as per the Policy Directive, the PTA/FAB shall undertake a process for the Rationalization of the spectrum in the 1800 MHz band to achieve contiguity where feasible (the Rationalization Process). The Rationalization Process will involve the entire spectrum in the 1800 MHz band and all the CMOs irrespective of their participation in the Auction. The Rationalization Process will be conducted in accordance with the timelines set out in Section 1.7 of this IM. Under the Rationalization Process, the PTA will endeavor to group together in the 1800 MHz band, each CMO’s Existing Spectrum, and the auctioned spectrum. This may involve a CMO’s Existing Spectrum changing from its current position, either up or down in the band. Suppose one CMO has 2×8.8 MHz of the Existing Spectrum and it acquires 2×1.2 MHz in the Auction, the PTA will group its 2×8.8 MHz of Existing Spectrum adjacent to its 1.2 MHz of Auction Spectrum to make a contiguous block of 2×10 MHz. The Base Price for each Spectrum Block is detailed in Table 8. These Base Prices will be the Starting Prices for the Spectrum Blocks offered in the Auction. These are based on per MHz Base Prices (paired spectrum) as set out in the Policy Directive.   ALSO READ Telcos Fail 3G/4G Performance Standards in PTA Survey Overall, this means that the Spectrum Blocks that are available for Auction and outlined have the following Base Prices: