Aitizaz Hassan ISLAMABAD, April 18 (INP-WealthPK): Pakistan Mobile Communications Limited (Jazz) has signed a licence renewal agreement with Pakistan Telecommunication Authority (PTA) in pursuance of the policy directive issued by the government. The license has been renewed for a fee of $486.2 million for 15 years, out of which 50% of the amount, which is Rs44.54 billion or $243.1 million, has been deposited by Jazz with the PTA, and the remaining amount will be paid in five equal annual instalments along with applicable markup. The renewed licence has enhanced terms and conditions for coverage and quality of service. According to PTA annual report 2021, the telecom regulator has generated a handsome amount of $486 million from spectrum auctions and licence renewal fees in 2021. Cellular mobile licences were issued in 2006 for a period of 15 years for provision of services in Azad Jammu and Kashmir and Gilgit-Baltistan. This term expired on June 26, 2021. PTA carried out extensive consultations with all stakeholders and cellular mobile operators, including Telenor Pakistan, Jazz and Ufone, which culminated in renewal of three licences for AJK and GB on June 24, 2021. All the three firms deposited 50% of the total licence fee amounting to Rs3.19 billion. The rest of the amount will be paid in 10 equal annual instalments. The process for renewal of the licence of Zong is due to be completed in August 2022. As per the renewed licence terms, the licensees are now required to annually add a minimum of 30 base transceiver station (BTS) sites in their existing networks. Similarly, all existing cellular networks are required to upgrade to MBB (3G/4G) at enhanced quality of service (QoS) rates. The renewal of cellular licences is expected to result in availability of uninterrupted, fast and cheap mobile and broadband services to the people in far-off areas. The PTA report says that last year Zong and Jazz participated in the electronic auction for 1800MHz band. After 18 rounds, Zong was declared winner of 10MHz (2 blocks of 5MHz) in 1800MHz band at a price of $14.398 million. The spectrum sold in 1800MHz band constituted 85% of the total offered spectrum in the said band for AJK and GB. Furthermore, Telenor, Ufone, and Zong also won 1.2MHz in 1800MHz band. Telenor Pakistan was declared winner in 2100MHz band for a spectrum of 15MHz against the set base price. The spectrum sold in 2100MHz band constituted 50% of the total offered spectrum in the said band. The total revenue generated from the spectrum auction for AJK and GB stood at over $30 million.
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