3G auction: International consortium chosen as consultant | Pakistan Press Foundation (PPF)

Pakistan Press Foundation

3G auction: International consortium chosen as consultant

Pakistan Press Foundation

ISLAMABAD: In the first practical step towards the much-awaited auction of next generation mobile services (3G), Pakistan Telecommunication Authority (PTA) on Monday completed the evaluation process for the selection of a consultant.

The selection has been made following a detailed review of financial bids opened on November 23 in the presence of all five bidders who had qualified the technical evaluation stage. A statement issued by the PTA said that the successful consultant, after the completion of further formalities, is expected to be invited to formally sign a contract soon.

With the appointment of consultant, a major step in the auction of spectrum has been completed that will help in timely finalisation of important aspects of the auction that include Information Memorandum (IM) for intended bidders, method of auction and the base price.

Value Partner Management Consulting Limited, a consortium of consultants from the United States, Britain Singapore and Spain has been declared successful. Arthur D Little Middle East FZ-LLC, Booz & Company, Detecon International GmbH and Frontier Economics Limited had also qualified the technical stage.

The government had decided to engage an internationally reputed consultant in order to ensure transparency in the auction process of 3G spectrum licence, estimated to be worth more than $1.2 billion in value. It is expected that by engaging a consultant, the government will be able to ensure maximum gain for the national exchequer.

On October 7, Prime Minister Nawaz Sharif had directed the relevant authorities to ensure that the allocation of the spectrum licence be technology neutral (3G or 4G) and auction be open for new entrants as well.

As per policy directives approved by the PM, the consultant is supposed to identify the number and size of blocks to be auctioned considering the market situation, recommend the most appropriate auction methodology and plan, recommend reserve price of the auction, design and management of the auction process, analyze potential impact on auction price with respect to upfront payment of bid price versus staggered payment over a period of five years and the optimal bidding procedure and develop a licence template for new licence.

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