3G Licenses: Level Playing Field is Necessary in Pakistan

admin / News Reviews Category / 15th September, 2011 / 2 Comments
3G Licenses: Level Playing Field is Necessary in Pakistan

None is coming up with definite answer regarding the fate of 3G license. Mystery shrouds the entire episode. Some attribute it to Sale Purchase Agreement (SPA) of Etisalat struck with government of Pakistan according to which no new license could be given before years and the restriction lasts till March 2013 since Etisalat only holds 26 shares of the company. Still others argue the condition applies to LDI license only. Does it appear then that the hands of the government are tied due to this agreement?

However government itself seems unclear on the issue and not coming up with a definite answer. It is anticipated that Government of Pakistan can not issue any new telecom license for 7 years, i.e. till March 2013 based on terms signed in Sale Purchase Agreement. However government itself seems to be unclear on the issue and offers different versions on different occasions. For instance just yesterday, Mr. Saeed Ahmed Khan, secretary Ministry of Information Technology was quoted by “The News” as saying:

There were different views on interpretation of agreement with Etisalat in case of selling PTCL as it did not bind the government as regards 3G license.” and then he went on to add, ”Etisalat deal only bound the government not to move ahead with license of LDI till March 2013

Sources said that there were differences over the interpretation of an agreement between Pakistan and the international telecom player reached at the time of the sale of shares of the state-owned telecommunication company.

Regardless of various theories making rounds Eitsalaat held Government could not sell a new telecom license for any spectrum until seven years, which would end in March 2013.

The government however maintains a different stance altogether. it holds that 3G license is not something new, but actually an extension of existing services. It has also a different interpretation of the time limit.

It’s not about taking the position; it’s about what you agreed with Etisalat while you were selling the telecom gold mine?

The questions now arise are why the GOP did not make public the agreement it struck with foreign giant as it was a public limited company .Another mind boggling question that is hard to digest is that In case the widely held view is correct then who will be responsible for massive loss people of Pakistan underwent

It is widely believed that in case if 3G licensees were to be sold out Zong and Warid will left behind and subsequently millions of their subscribers are supposed to suffer greatly. This sad spectacle is not new for people of Pakistan when they already had seen Paktel and Instaphone operating on AMPS while others on GSM. Assuming that no outside bidder will come into the field a market will emerge with three 3G operators and two GSM operators.

Keeping in view the example of Instaphone and Paktel, this is no rocket science to understand that both Zong and Warid will suffer with huge loss, layoffs, monetary deprivation for vendors, license fee loss for government, business closures for franchises and distributors etc.

It is time to come up with rational policies and give a level playing field to all operators since consumers are citizens of this country who are protected constitutionally for equal rights. Instead of pushing two operators away from new technology – just to make bidding successful (in government’s viewpoint by raising more money) will be a suicide attempt for national economy.

Early reports regarding 3G auction suggests that each licensee will be awarded with 10MHz spectrum from 2100 MHz spectrum – which translate into 30 Mhz of total frequency that government of Pakistan has allocated for 3G licenses, while the rest is likely to be used by agencies or military, as claimed by sources.

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