Telenor wins 4G license in Pakistan for $395m
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Norway’s Telenor has secured a 4G license in Pakistan for $395 million as the sole bidder for an 850-MHz spectrum block.
Telenor Pakistan will join China Mobile subsidiary Zong in holding a 4G license following the auction. The operator is seeking to capitalize on burgeoning demand for mobile broadband in a market where smartphone shipments soared 123% in the first quarter of last year.
As of the end of April, the number of broadband users in Pakistan grew to nearly 29 million, the report states, marking a higher population penetration than India, Nepal and Bangladesh.
Telenor Pakistan was the lone bidder for the 10 MHz block of 850-MHz spectrum, even though the auction was open to both domestic and international participants. The government had been hoping to use the auction to attract a new entrant into the market.
The operator will be allocated the spectrum within 30 days of making its payment.
Questions & Answers
Q.Which other company currently holds a 4G license in Pakistan alongside Telenor?
Which other company currently holds a 4G license in Pakistan alongside Telenor?
China Mobile's subsidiary, Zong, already possesses a 4G license in Pakistan. Telenor Pakistan will now operate alongside Zong in providing 4G services, following its successful bid for the spectrum block in the recent auction.
Q.Why did Telenor bid for the 4G license in Pakistan?
Why did Telenor bid for the 4G license in Pakistan?
Telenor aims to capitalise on the rapidly growing demand for mobile broadband in the Pakistani market. The country has seen significant growth, with smartphone shipments increasing by 123% in the first quarter of last year, indicating strong market potential.
Q.What was the Pakistani government's primary objective for this 4G spectrum auction?
What was the Pakistani government's primary objective for this 4G spectrum auction?
The government had hoped the auction would attract a new entrant into the telecommunications market. However, Telenor Pakistan was the sole bidder for the 10 MHz block of 850-MHz spectrum, despite the auction being open to both domestic and international companies.
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