Licence winner to pay $500m in a week

Published April 26, 2014
PTA Chairman Dr Ismail Shah said: “The cellular companies are eager to roll out 3G services at the earliest. If the government receives payments from these two companies, PTA would issue licences within a week instead of waiting for a month.” — File photo
PTA Chairman Dr Ismail Shah said: “The cellular companies are eager to roll out 3G services at the earliest. If the government receives payments from these two companies, PTA would issue licences within a week instead of waiting for a month.” — File photo

ISLAMABAD: Two mobile operators have shown interest to make full payments to the government for 3G and 4G licences to avoid paying three per cent additional interest on instalments.

Speaking at a briefing at the Pakistan Telecommunication Authority headquarters on Friday, State Minister for Information Technology and Telecommunications Anusha Rehman said that Zong would likely be paying $500 million in a week, and another company would also be making full upfront payment.

She said that the ministry is expecting at least 75pc payments before the budget for 3G and 4G licences.

PTA Chairman Dr Ismail Shah said: “The cellular companies are eager to roll out 3G services at the earliest. If the government receives payments from these two companies, PTA would issue licences within a week instead of waiting for a month.”

Although a road-map had been prepared for cellular companies to pay licence fees, Finance Minister Ishaq Dar has in the meantime given option to mobile operators to make full payments to avoid paying additional interest rates.

Initially mobile companies have one month to make at least 50pc down payment for 3G and 4G licences after the auction to be able to roll out next generation services on commercial basis.

“The mobile companies will be investing $4bn in the next two to three years. One of the cellular companies is already in the process of installing 1,600 booster towers to offer telecommunication services in less served locations,” said Anusha ,Rehman adding that students would be benefiting the most by connecting through E-education that enables multimedia and technology enhanced learning.

“Among other services to provide a conducive environment for growth of next generation services, the Ministry of IT would focus all its resources in the next two years on establishing information technology parks that will facilitate in 3G and 4G applications development,” said the minister.

Responding to questions, she explained how she had met heads of Chinese companies associated with telecom services in Pakistan and offered them to start manufacturing telecom equipment in Pakistan on public private partnership basis.

“This is especially necessary when Pakistan spends more than $900 million on import of telecom equipment and telephone/cellular handsets every year. The ministry has offered them premises and tax concessions for manufacturing telecom equipment in the country,” she said who had offered plants of Telecommunication Industries of Pakistan (TIP) to the Chinese companies.

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