Jazz signs Agreement with PTA for License Renewal
The Pakistan Mobile Communications Limited (Jazz) here on Tuesday signed the agreement for the renewal of its operational license with the Pakistan Telecommunication Authority (PTA).
This is a commitment to the highest ever investment in the telecom sector.
The 15-year license was renewed for a fee of $486.2 million dollars, with Jazz depositing half of the fee (Rs44.54 billion, or $243.1 million), and the rest paid in five equal annual installments, plus applicable markup.
Dr. Sohail Rajput, federal secretary for IT and telecommunications, Maj. General (retd) Amir Azeem Bajwa, Chairman PTA, Dr. Khawar Siddique Khokhar, Member Compliance & Enforcement (PTA), Dr. Khawar Siddique Khokhar, and senior officials from Jazz, PTA, MOIT, and the frequency allocation board FAB attended the license renewal ceremony at PTA office.
According to the policy directive. renewal of a license is likely to attract $486.2 million.
Subsequently, the company will pay 100 percent upfront or 50pc upfront with the remaining 50pc on five equal annual installments on LIBOR+3pc.
Jazz commits $486 million to renew the spectrum
The government had awarded the current 15-year operating license to Jazz in 2007.
In a tweet message, Aamir Hafeez Ibrahim, CEO of Jazz, stated that the company has committed $486 million to renew its spectrum for another 15 years, which is the largest investment in the history of Pakistan’s telecom sector.
He went on to say, “It reflects our commitment to improving our services to 75 million customers.”
The highest ever commitment in the telecom sector is due to the high benchmark and price set during the spectrum auction 2021.
At the last spectrum auction for each megahertz (MHz) frequency was $39.5 million for 900 MHz and $31m for the 1800 MHz, and Jazz has a large spectrum base, set to expire in July 2022.
Furthermore, the telecom regulator has renewed the license under this policy of technology-neutral, allowing the flexibility for the company to adopt any upcom¬ing technology in the sector.
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The merger of Mobilink and Warid in 2017 enabled Jazz to become the market leader for the cellular network in Pakistan with the largest user base.
Meanwhile, Jazz has invested over $10 billion in the country, including $560 million from the merger of two companies aimed at improving “Quality of Service.”
Moreover, the company has made bulk investments in infrastructure developments including laying 25,000 kilometers of fiber-optic cables around the country. It also includes the installation of telecom equipment, and the training a competent workforce.
