ISLAMABAD, Nov 7: Dr Ataur Rahman, minister for science and technology, has raised serious concerns over the lack of transparency in the award of $150 million EGSM (Extended Global System for Mobile Telephone) licence to a mobile telecom firm that could literally monopolise the cellular telephony in the country.

The minister, who is responsible to look after all the telecom issues, has also blamed the chairman of the Pakistan Telecommunication Authority (PTA) for overstepping his powers and interfering into the jurisdiction of Frequency Allocation Board (Fab), another independent regulator.

Official documents provided to Dawn suggest that Ata was also flabbergasted as to why and under what circumstances the PTA chairman was entering into an agreement with Paktel Limited for a licence just a few days before telecommunication deregulation policy was planned to be announced.

He also listed a number of varying arguments put forth by PTA chairman Maj-Gen Shahzada Alam Malik (retired). He is reported to have sought intervention of President Gen Pervez Musharraf to avoid a national loss, sources said.

The minister said M/s Millicom — the owners of two cellular operators Paktel and Instaphone — have been asked to state the installation of GSM network and use the available 5MHZ band whereas Fab was vigorously pursing Pakistan Air Force for vacation of remaining 5MHZ band.

At the same time it was indicated that order to the magnitude of investment would be $35 million. On telecom ministry’s objections, the PTA changed its stance, and stated that the expected investment would be $30 million in phase-1 and $15 million in phase-II.

The minister said the information was considered inadequate by the IT & Telecom division and, therefore, the PTA was again requested to clarify the position. In response, it was explained by the PTA that Paktel would increase the investment up to $150 million as against $45 million indicated earlier.

Ata said the PTA was advised to take decision on merit of the case as regulator. The attention was also drawn to the fact that Paktel and Instaphone belonged to one entity and that the PTA should note that EGSM licence was actually going to one party instead of two.

The PTA observed that this was not their concern and cited the example of a company manufacturing washing powders where shares in international market of two companies were competing each other, the minister said, and expressed surprise as to how an EGSM telecom licence could be compared with washing powder.

He said the IT & Telecom division also sought clarifications on process of transparency, competitiveness, market benchmarks, public consultation, etc., besides, whether the EGSM frequency permission fell with the rules of existing licence or the Telecom Reorganisation Act of 1996.

He said he had personally informed the PTA chairman that the grant of EGSM licence to Paktel would de facto imply giving licence to one party — owning Instaphone and Paktel together — which may not be appropriate.

The minister pointed out that allocation of frequency under the 1996 Act fell in the domain of Fab. “It is not clear as to in what capacity the PTA could come to an agreement with M/s Paktel for allocation of frequency band without the approval of FAB. On technical plan, there are many open-ended issues which also seemed to have been overlooked,” he said.

As per the 1996 Act, he said, the decisions regarding grant of licence were to be taken by the authority. “At present, you are the only person in the authority and, therefore, the decision taken by you does not have the benefit of the majority of the persons representing the authority. As such, your grant of licence in your capacity as chairman alone is questionable in the he eye of law,” he reminded the PTA chairman.

Ata said the PTA chairman was aware of the actions being taken to prepare a new telecommunication deregulation policy and was thoroughly involved in all discussions process in the policy formulation.

He said he was at a loss to understand as to why the PTA chairman hastened to sign the agreement with Paktel a few days ahead of the time when the policy draft was going to be presented to the cabinet.

Maj-Gen Shahzada Alam (retired) was not available for comments despite repeated attempts by Dawn.