The federal authorities has introduced base costs for a number of spectrum bands to be auctioned for next-generation cellular providers, 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 primarily based on enter from an impartial worldwide guide.
In response to 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 mounted at $14 million every, reflecting their industrial significance and function 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 providers globally.
The coverage directive additional states that the spectrum charge can be payable in Pakistani rupees, with the USD-PKR conversion charge locked on the Nationwide Financial institution of Pakistan (NBP) TT promoting charge prevailing on the day earlier than the spectrum public sale.
This locked change charge mechanism is meant to supply certainty to bidders and shield them from forex fluctuations throughout the public sale course of.
The coverage directive additionally outlines versatile cost choices for successful operators. Licensees could both pay the total spectrum charge by the primary anniversary of the license award or go for a deferred cost plan.
Underneath the deferred choice, operators should pay a minimum of 50 % of the entire charge by the primary anniversary, whereas the remaining 50 % could also be paid in 5 equal annual installments ranging from the second anniversary.
The unpaid steadiness can be topic to a further financing cost calculated at KIBOR plus 3 % every year. For the primary installment, the relevant rate of interest can be primarily based on the one-year KIBOR prevailing on the date the license is issued. For subsequent installments, the KIBOR charge relevant would be the one prevailing on the cost date of the earlier installment.
Operators will even have the choice to prepay the excellent steadiness 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 cost.
The spectrum license awarded beneath the public sale can be legitimate for 15 years. The directive additional permits spectrum buying and selling and sharing in accordance with the principles and laws prescribed by the Pakistan Telecommunication Authority (PTA).
