Etisalat Creating Problems For Launching 3G In Pakistan?

Mashhood Riaz / News Reviews Category / 11th September, 2011 / 0 Comments
Etisalat Creating Problems For Launching 3G In Pakistan?

There is a confusion prevailing over the 3G license auctions, it is also being blocked because of PTCL 26% shares in Sale Purchase Agreement (SPA).

With the help of a source, this story was first uncovered back in November 2009, but nobody confirmed it then because we did not see SPA ourselves. Both Etisalat and Government of Pakistan kept press media in dark from that time. Government of Pakistan is not allowed to issue any telecom license for more 7 years as the deal was signed with PTCL due to its 26% shares and these terms were based on Sale Purchase Agreement. Another told stated that this limitation only applies to LDI licenses not the 3G ones.

It now seems like Government of Pakistan is unable to auction any new telecom license, as it signed a Sale Purchase Agreement with Etisalat too. Government of Pakistan is also confused because they are not clear about the terms they agreed in that SPA with Etisalat. Secretary Ministry of IT Mr. Saeed Ahmed Khan said in an interview with The News:

Khan said that 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.

When his attention was drawn towards the viewpoint of other ministries, he said that Etisalat deal only bound the government not to move ahead with license of LDI till March 2013.

Another, totally opposite report from the Mr. Khan’s was published by Express Tribune the next day.

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.

The telecom giant was of the opinion that Pakistan could not sell a new telecom license for any spectrum until seven years, which would end in March 2013.

Well, it’s really surprising and amazing that we got two different statements from the Government officials over the same issue in just two days. Express Tribune further discussed the matter by saying:

The government has taken the position that 3G license is not something new, but actually an extension of existing services. It has also a different interpretation of the time limit.

After these statements, many questions arise in the minds of people of the country, Firstly, why SPA with PTCL was never made public, as PTCL is a public limited company too. Secondly, who signed this agreement of not giving new licenses for seven years, he should be legally trialed for this major blunder. We are here hoping to get answers from Government of Pakistan.

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