Ufone obtains additional spectrum at $279m

Ibn-e-Ameer

Ufone has obtained a 9 MHz spectrum in the 1800 megahertz (MHz) band at $279 million due to its service quality and expansion in different underserved areas.

On Friday, the Pakistan Telecommunication Authority (PTA) declared Ufone as the sole winner in the auction of additional spectrum 2021.

The leading telecom companies-Jazz, Telenor, and Zong, did not participate in seeking additional spectrum.

However, the telecom sector regulator has termed the whole process success.

Briefing about the results of the auction 2021, chairman PTA Maj Gen (retd) Amir Azeem Bajwa, here Friday said that the Ufone would pay 50 percent of the bid amount in government treasury, which is Rs 23.44 bn within 15 days.

The company has already paid Rs 9.38 bn, 20 percent of the said amount, on Thursday 9th September, while it will pay the remaining 50 percent in 5 equal annual installments.

Ufone has won 9 MHz in the 1800 band, which is 70.3 percent of the total offered spectrum in this band.

With this addition, the spectrum holdings of Ufone will increase from 6 MHz to 15 MHz in the 1800 band.

Gen (retd) Bajwa added that the auction could not be termed a failure or a flop show because it was an open and unrestricted market, all the players were invited to participate, and only those who needed spectrum bought it.

He responded to various criticism over the auction process. He said, “It is clear that Jazz has a significant huge base and the company has even announced that they do not require fresh spectrum for the time.

Telenor has issued a similar statement. Zong has some spectrum under litigation and they must be hoping to have it sooner or later.”

Chairman PTA added it was a marketing decision by these companies. The initial demand of the industry in the 1800 MHz band was 6.4, whereas the regulator sold a 9 MHz spectrum, and that too was the marketing decision by the Ufone.

He further said that mobile companies used to say that the government was hoarding spectrum by not offering it, but now they have stayed away.

Gen (retd) Bajwa also said the base price of the spectrum is not high. It is the cheapest in the region when compared to India and Bangladesh. Responding to a question, he said that the PPRA rules allowed single bidders to win the auction.

Reporters also asked Chairman PTA over the comments of the telecom sector authority over the proposed Pakistan Media Development Authority (PMDA).

“We can only make comments after looking at the draft of the PMDA bill, only a concept paper was shred with us and the PTA thinks that it was only a duplication of work as long as the telecom sector and frequency allocation was concerned.”

Gen (retd) Bajwa said, “PTA and the frequency allocation board were on the board of PEMRA, and it was already operating I a structured manner.”

Chairman PTA said that social media was under the domain of the PTA.