Jazz places sole bid in Pakistan 1800-MHz auction
In this article (5)
Pakistan’s Jazz has emerged as the sole bidder for a 10 MHz block of paired 1800-MHz spectrum conducted by regulator the Pakistan Telecommunication Authority. Jazz submitting the minimum bid of $295 million just before the deadline.
The next generation mobile services auction drew limited interest from operators which mostly sat out of the auction, including Ufone – the only operator in the market without the capability to provide 4G services, which was expected to bid to rectify this.
PTA now plans to evaluate Jazz’s bid, and if it is found to meet the required conditions the operator will be given two options for payment. Jazz will either be allowed to pay the whole price upfront, or pay a 50% first installment and five equal annual installment payments with interest.
Jazz will also be required to pay a 10% tax on the auction. A PTA official stating that high reserve price – $85 million more than the equivalent asking price for the same spectrum in 2014 – and level of taxation may be to blame for the lack of interest in the auction.
The report also cites an official at China Mobile’s Pakistani subsidiary Zong stating that the company has no need for additional bandwidth.
Questions & Answers
Q.What is the minimum bid Jazz submitted for the 10 MHz block of spectrum?
What is the minimum bid Jazz submitted for the 10 MHz block of spectrum?
Jazz submitted a minimum bid of $295 million for the spectrum. This bid was placed just before the deadline for the auction conducted by the Pakistan Telecommunication Authority.
Q.Why did other operators show limited interest in the 1800-MHz spectrum auction?
Why did other operators show limited interest in the 1800-MHz spectrum auction?
A PTA official suggested that the high reserve price and the level of taxation may have deterred other operators. The reserve price was $85 million more than the equivalent spectrum in 2014.
Q.What payment options will Jazz have if its bid is approved by the PTA?
What payment options will Jazz have if its bid is approved by the PTA?
Jazz will have two options: either pay the full price upfront, or make a 50% first instalment followed by five equal annual payments with interest. A 10% tax on the auction will also be required.
Q.Which operator was expected to bid but ultimately sat out of the auction?
Which operator was expected to bid but ultimately sat out of the auction?
Ufone, the only operator in the market without 4G services, was expected to bid in the auction to rectify this. However, it chose not to participate, along with most other operators.