Auction for 3G licences yet to get response -Pakistan Press Foundation (PPF)

Paksitan Press Foundtion

Auction for 3G licences yet to get response

BY: TAHIR AMIN

No international as well as national companies and consortia have shown any interest in response to an advertisement of the Pakistan Telecommunication Authority (PTA) seeking hiring of consultant to auction 3G spectrums, although only eight days are left in the deadline for submission of proposals.

However, PTA is expecting a good response from companies and consortia of international repute in the last week of the timeline for submission of proposals in this regard. PTA advertised the RFP (Request for Proposal) for the consultancy services of 3G spectrum auction on August 13, 2012 in international as well as in national media.

The Authority sought proposals from interested companies/consortia as per parameters laid down in the RFP, within 30 days from the date of publication of the advertisement in media. The technical and financial proposals were also sought to be submitted in a single package containing two separate sealed envelopes, marked as Financial Proposal and Technical Proposal with a non-refundable processing fee of $1000.

However, well placed sources in the PTA told to Business Recorder that any international as well as local company and firm was yet to express some interest, as no application or proposal was received by the Authority. When contacted, Chairman PTA Farooq Ahmad Awan told Business Recorder that the Authority was expecting a good response during the last week of the timeline given for submission of proposals. A lot of time is still there and it is expected that local as well as international firms and companies would show their interest by submitting proposals in this regard.

Earlier, hiring of local consultant by the Auction Supervisory Committee (ASC) raised serious issues of transparency; this, in turn, mounted pressure on the government to delay the auction and hire an international consultant to ensure transparency in sale of 3G license. Meanwhile, Prime Minister Raja Pervez Ashraf directed Ministry of Information Technology and PTA to immediately advertise the post of consultant to accelerate the process of auction of 3G licenses. On August 13, 2012 PTA reinitiated the process to hire consultant of international repute for the smooth process of 3G license auction.

PTA intends to engage the services of a consultancy firm of international repute (the consultant) for the auction of mobile cellular license/spectrum. Consultant shall assist the client on all steps necessary in making the auctions a success in terms of marketing, valuation, process design and transparency to provide maximum value to the client.

The consultant should have expertise and experience of mobile cellular license/spectrum auction along with relevant financial, economic, technical, legal and regulatory experience, spectrum valuation, spectrum auction design, process management for 3G and beyond technologies/services and concluding transactions of similar nature.

Responsibilities of the consultant shall include (a) conduct technical, commercial and legal due diligence related to the proposed transaction including review of the existing policy, documents, processes and all other matters ancillary thereto. (b) Prepare information documents for dissemination of timely and accurate information to stakeholders and potential investors. (c) Assist the client in designing and conducting auction in a transparent manner while averting collusion and ensuring competition.

Business Recorder