Pakistan's 3G, 4G auction draws disappointing bids

Discussion in 'Pakistan' started by Blackwater, Apr 16, 2014.

  1. Blackwater

    Blackwater Veteran Member Veteran Member

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    [​IMG]

    ISLAMABAD: A dismal response in this week's auction for next-generation cellphone spectrum licences means cash-strapped Pakistan will struggle to fund its budget this year, finance and IT ministry officials and telecom industry executives told Reuters.

    Pakistan is set to hold long-awaited auctions for 3G and 4G network licences on April 23, a step the government projects will raise $2 billion to boost the country's foreign reserves.

    But officials say there has been scant interest in Monday's bidding process and estimate Pakistan will raise no more than $850 million.

    "The finance minister (Ishaq Dar) is very angry, so much so that he wants to call off the auction if we are so embarrassingly off target," said an official on his team, who declined to be identified as he is not authorised to speak officially on the matter.

    "This has happened because of an over enthusiastic IT ministry which oversold an undercooked plan to its fiscal managers. It looks like heads may roll on this one."

    Pakistan is the only major country in the region that still does not offer 3G services. Its neighbour, war-ravaged Afghanistan, switched to 3G services in 2012.
    :lol::lol::lol:


    There are about 132 million mobile phones in use in Pakistan, a country of 180 million people, according to the Pakistan Telecommunication Authority.

    Pakistan's telecommunications market was deregulated in 2004 and foreign firms such as Etisalat have invested heavily in recent years.

    The finance ministry said in February that Pakistan would sell both the 3G and the more advanced 4G LTE spectrum. Selling just 3G licences could raise $2 billion, and bundling them with 4G spectrum could generate between $4 billion and $5 billion, finance minister Ishaq Dar had estimated.

    The 3G spectrum auction was expected to raise Pakistan's gross domestic product by $8 billion and indirectly create up to 900,000 new jobs, a government-commissioned study by Plum Consulting said.

    But when bidding closed at 4 pm on Monday, only four out of five cellular mobile companies operating in Pakistan had submitted bids and no new companies showed interest, sources privy to the bidding told Reuters.

    Telecom companies Mobilink and Zong bid for 10 MHz. Telenor and Ufone both bid for 5 MHz.

    Warid Telecom Pakistan, owned by the privately-held conglomerate Abu Dhabi Group, did not submit a bid, said a source in the company. Neither did Turkcell and Saudi Telecom Company, two foreign companies who had earlier shown interest.

    "There are four available 3G blocks in 1800 MHz: two 10 MHz and two 5 MHz. The base price for 10 MHz block is $291 Million and 5 MHz is $146 million," said a finance ministry official present at Monday's bidding.

    "The auction is thus expected to go for $863 million, nowhere close to $2 billion."

    Bids for 4G LTE licences were to start at $210 million. No operator has shown any interest.

    "It looks like 4G won't fetch any money," the finance ministry source said. "The disappointing bids are deepening the budget hole by almost $1.7 billion and are such a big hit the finance minister is ready to postpone the whole auction process."

    Spokesmen in the finance ministry, the IT ministry and telecom companies taking part in the bid said they were not authorised to officially comment on the issue.

    The disappointing response will pile further pressure on embattled Information Technology Minister Anusha Rahman, who is overseeing the auction.

    She drew criticism last month after appointing her husband to the Board of Directors at Ufone, one of the companies bidding for licences and partly owned by the government. He later resigned.

    PTA Rejects Report

    The Pakistan Telecommunications Authority (PTA) has termed the report by wire news agency Reuters baseless.

    The PTA said officials from the Ministry of Finance were not involved in the bidding process and the auction was being overseen by an independent regulator.
    Pakistans 3G, 4G auction draws disappointing bids | BUSINESS - geo.tv
     
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  3. Blackwater

    Blackwater Veteran Member Veteran Member

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    @Neo pra

    what could be the reason cel companies are not interested in 3g and 4g despite 13 crore mobile-oil user in ur watan???
     
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  4. Jagdish58

    Jagdish58 Regular Member

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    Pakis please hire service of Raja , Maran , Kanzimoli , Sun network , Chidambaram & the Big one MM SINGH & SONIA family

    You will get fair response from all over the world:toilet:
     
  5. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    Someone should spread a rumour in Pakistan that 3G services make it much easier to set off roadside bombs using cellphones. Then just watch the great demand for 3G in that country!
     
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  6. jalsa

    jalsa Regular Member

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    Actually it is 4G, LTE on 800/1800MHZ spectrum has wide coverage and more importantly 4G has ultra low latency and results will be instantaneous. You will get the desired results within 50 milliseconds.
     
  7. laughingbuddha

    laughingbuddha Regular Member

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    He's right. and they will all be available after May 16th. :welcome:
     
  8. rock127

    rock127 Maulana Rockullah Senior Member

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    Perhaps better is to tell super jahil awaam of Pakis that the fast G speed means they can see animal porn videos also and not just pics.

    This would see a big pressure and demand for even 10 G. Below are favorite pornstars of Pakis:-


    [​IMG]

    [​IMG]

    [​IMG]
     
    Last edited: Apr 16, 2014
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  9. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    The expected figures were so over-inflated for the market they have there. How on earth did they think they would get $2Billion for all of Pakistan? So many Indian states have done worse in comparison to the $850 Million generated.

    Look at the 2010 auction figures in Punjab, Kerala and West Bengal. These three states are quite comparable to Pakjab and Sindh in terms of population, GDP and types of industries. The combined worth of the three Indian states (including Kolkata) in the spectrum auction was $850 Million for 3G spectrum at the time. It was obvious they couldn't expect anything better than that. What were they thinking?

    They probably thought Karachi would be their cash cow like Delhi and Mumbai were. I wonder how much was sold in Karachi. I wouldn't be surprised if the auction costs were equal to what Kolkata's spectrum was sold for. That was around $300 Million.
     
  10. Blackwater

    Blackwater Veteran Member Veteran Member

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    remote control mobile phone operated bombs developed by pakis took its toll on 3 and 4g .


    most of the times, pakis mobile service is suspended from few hours to few days in different part of cities.


    no company want to invest further in 5000000000000yrs old un-civilization
     
  11. Dark Sorrow

    Dark Sorrow Respected Member Senior Member

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    They may even create an Andriod app for it.
     
  12. Dark Sorrow

    Dark Sorrow Respected Member Senior Member

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    3G and 4G has most use in area in mobile Internet access, fixed wireless Internet access, video calls and mobile TV. If these services are not popular in Pakistan to generate enough revenue for the telecom companies then their is no need to implement them. It will be waste of resources.
     

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