Telecos want grievances addressed before spectrum auction

ISLAMABAD: All telecom operators have jointly refused to participate into upcoming remaining available spectrum auction unless their problems of taxations, external interference due to jammers installed at different jails and power generation for shifting of towers to solar energy are not resolved.
The government’s efforts to fetch multimillion dollar into national kitty through auction of remaining spectrum of Next Generation Mobile Services (NGMS) seems in doldrums with the latest threat given by the telecom operators.
In a joint communication signed by top guns of telecom operators including Mobilink, Telenor, Ufone, Warid and Zong which was sent out to Pakistan Telecommunication Authority (PTA), a copy of which is exclusively available with The News, states that the Cellular Mobile Operators (CMO) had committed a very major investment in the NGMS auction held in April 2014.
During the auction process, the letter states, it was assured by the government that the major challenges faced by the industry will be addressed on priority basis.
“However, we regret to inform that all the promises made during the auction process remain unfulfilled till date,” the letter states. On the contrary, the industry problems have increased manifold in the post auction scenario on account of adverse changes by the government in taxation, security related compliances and other allied matters.
Moreover, the telecom operators would like to highlight that telecom sector policy review is also in progress for a while now and some of critical ancillary matters such as licensing framework and other spectrum related rights and obligations are still not clear for making an informed decision for investing in the sector through spectrum auction.
According to the letter, the problems faced by the industry have time and again shared with PTA, Ministry of Information Technology, and other concerned authorities including right of way problems faced by the industry, minimum tax at rate of 8 percent, taxation on data services, industrial undertaking for cellular mobile industry, elimination of reduced rate customs duty benefit at import stage, and imposition of sales tax on sales tax on supply of SIMs and other allied matters through several communications.
The industry raised the issue of external interference due to jammers installed in different jails across Pakistan and communication in this regard was shared with the PTA vide industry letter dated April 30, 2015.
They also asked the government for shifting of communication towers to solar energy and in this regard they shared their communication with PTA and Ministry of IT vide industry letter dated August 21, 2015.
It was clarified during the consultation process that expression of interest in auction and technical consultation is subject to commercial viability of any such initiative. “We through this letter once again want to clarify that it might not be possible for the existing CMOs to commit any investment in the spectrum auction unless our problems are addressed on priority basis.
The PTA has hired Inter Connect Communication, a consultancy firm based in UK, for provision of consultancy services for upcoming 3G/4G auction in the country.
On directives of Finance Minister Ishaq Dar, PTA is aiming at conducting another round of 3G/4G auction in Pakistan with-in next few months.
It may be recalled that Pakistan had sold four 3G and one 4G licences in April 2014 for a total value of US$1.182 bln, while one block in 1,800MHz and another in 850MHz was not sold then, which PTA is aiming to sell through an auction in next few months.
When contacted to PTA spokesman on Thursday, he confirmed that the consultancy firm was given deadline of 45 days to complete its report on the basis of which the decision would be taken on auctioning remaining available spectrum.