Telecom licences auctions facing regular delay

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STAFF REPORT ISB: The government is yet to start the process of holding the second round sale of 3G/4G licenses as planned in the budget 2014-2015, depriving the national kitty from Rs 56 billion.

The government had not announced the process of holding the auction of 3G/4G licenses despite passing of almost three quarters (July-March) of the ongoing fiscal year.

The incumbent government in the budget 2014-2015 had kept Rs 56 billion in non-tax revenue in the budget, which was supposed to be fetched through the selling process of licenses.

The expected failure in holding this auction might increase the problems of the economic managers of the country in restricting the budget deficit within the level agreed with IMF.

It is worth mentioning here that the government has two licenses, 4G and 2G, to offer for the auction. One licence of 4G with a base price of $210 million and another licence exclusively kept for a new entrant (2G) with a base price of $291 million.

Out of the four competitors participating in the auction, only Zong managed to secure licences for both 3G and 4G spectrums; the other three – Mobilink, Telenor and Ufone – secured only 3G licences.


Published in: Volume 06 Issue 13

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