The federal authorities has introduced base costs for a number of spectrum bands to be auctioned for next-generation cellular companies, offering monetary readability to telecom operators forward of the deliberate spectrum public sale.
The bottom costs have been finalized on the suggestions of the Public sale Advisory Committee and are based mostly on enter from an impartial worldwide advisor.
In accordance with the coverage directive, the bottom worth for 1 MHz of paired spectrum within the 700 MHz band has been set at $6.5 million. The bottom worth for 1 MHz of paired spectrum in each the 1800 MHz and 2100 MHz bands has been fastened at $14 million every, reflecting their business significance and position in increasing cellular broadband capability.
For an unpaired spectrum, the bottom worth has been set at $1 million per 1 MHz within the 2300 MHz band, $1.25 million per 1 MHz within the 2600 MHz band, and $0.65 million per 1 MHz within the 3500 MHz band, which is taken into account a key frequency vary for 5G companies globally.
The coverage directive additional states that the spectrum payment will likely be payable in Pakistani rupees, with the USD-PKR conversion price locked on the Nationwide Financial institution of Pakistan (NBP) TT promoting price prevailing on the day earlier than the spectrum public sale.
This locked trade price mechanism is meant to offer certainty to bidders and shield them from forex fluctuations through the public sale course of.
The coverage directive additionally outlines versatile fee choices for profitable operators. Licensees might both pay the total spectrum payment by the primary anniversary of the license award or go for a deferred fee plan.
Underneath the deferred choice, operators should pay no less than 50 % of the full payment by the primary anniversary, whereas the remaining 50 % could also be paid in 5 equal annual installments ranging from the second anniversary.
The unpaid stability will likely be topic to a further financing cost calculated at KIBOR plus 3 % every year. For the primary installment, the relevant rate of interest will likely be based mostly on the one-year KIBOR prevailing on the date the license is issued. For subsequent installments, the KIBOR price relevant would be the one prevailing on the fee date of the earlier installment.
Operators may even have the choice to prepay the excellent stability at any time inside 5 years with none prepayment penalty; nevertheless, the relevant curiosity at KIBOR plus 3 % will proceed to use till the date of ultimate fee.
The spectrum license awarded underneath the public sale will likely be legitimate for 15 years. The directive additional permits spectrum buying and selling and sharing in accordance with the foundations and laws prescribed by the Pakistan Telecommunication Authority (PTA).