3G auction Process to be completed this year – PTA Chairman

3G auction Process to be completed this year and will generate Rs100bn revenue – PTA chief     

Islamabad (Daily Business Recorder / Saturday, OCtober 6, 2012) – Pakistan Telecommunication Authority (PTA) Chairman Farooq Ahmad Awan on Friday said 3G auction process would be completed in the current year, which would generate revenue of Rs 100 billion against Rs 79 billion estimated in the budget.

PTA Auction 3G 4G LTE spectrum for mobiles

The 3G auction would be completed by the end of current calendar year and is expected to generate revenue of Rs 100 billion instead of Rs 79 billion to the exchequer, PTA chairman told a select group of journalists, here on Friday. Public Procurement Regulatory Authority (PPRA) rules were being followed in the auction process which also includes inviting Request for Proposals (RfPs) for hiring consultant of international repute, the chairman added.

He said the new policy for setting up of International Clearing House (ICH) would bring a sustainable foreign exchange reserves of $ 800 million annually to the exchequer, besides monitoring voice, data, and blasphemous movies. The new policy has been implemented from October 1, 2012.

Setting up of ICH has resulted in increasing the rates of incoming calls from outside the country from 1.2 to 8.8 cents per minute including 5.8 and 2.9 share of LDI operators and government, respectively.

The chairman said three years ago calling rates from outside the country were 10 cents per minute, which would brought $ 600 million per annum, however it resulted in increasing the number of illegal calls.

To control grey traffic, the government slashed this rate to 1.2 cents per minute, but the foreign exchange reserve also drastically dropped and touched nearly $ 100 million, said Farooq, adding that the move also resulted in defaulting 13 cellular companies to the tune of Rs 20 billion.

However, setting up of ICH will not only result in decreasing the volume of grey traffic, but will also bring in $ 900 million per annum, Chairman PTA maintained.

An oversight committee comprising members from LDIs, PTA and security agencies will monitor the whole process, while all private companies will provide funds for installing equipment, the chairman maintained. After failure to generate Rs 75 billion from the auction of 3G license during last fiscal year, the government has estimated Rs 79 billion in the current fiscal year.

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