ISLAMABAD: Prime Minister Nawaz Sharif on Thursday handed out licences for next generation 3G and 4G services to the four cellular companies that had bid on them.

The necessary paperwork was concluded and the licences were handed over at a ceremony held at the Serena Hotel amid hopes that the technology would open new avenues of socio-economic development in the country.

The government sold 3G and 4G licences to Mobilink, China Mobile (Zong), Ufone and Telenor in April for an estimated $1.22 billion. With the introduction of 3G and 4G services, subscribers will be able to use broadband internet services on mobile handsets and experience connectivity at speeds up to eight times faster than the ones at present offered by 2G services in the country.

Officials from the cellular companies did not disclose how soon they would launch their services officially, but telecom companies have been providing free 3G services to subscribers in selected cities on a trial basis.

In his address, Prime Minister Sharif told the audience of ministers and telecom industry professionals, including chief executive officers of the cellular companies, that the auction’s success and transparency was recognised and appreciated worldwide.

“With the launch of this service, the government is likely to earn Rs260 billion in additional revenue, besides creating hundreds of thousands of jobs over the next four years,” he said.

He said that broadband services should be expanded to far-flung areas and emphasised that companies should work to make these services more affordable.

The prime minister stressed the need for devising a code of conduct for the telecom sector in order to ensure better services for users. He called upon the youth to make full use of the latest services for research and educational purposes.

Highlighting the significance of telecom sector for the sustainable development, Mr Sharif said the government would continue to support all sectors, including the telecom industry, in achieving their developmental goals.

Speaking at the ceremony, Finance Minister Ishaq Dar said the government still had two licences for next generation mobile services which would be “auctioned at an appropriate time after the approval of the federal cabinet”.

He assured telecom companies that taxes on the sector would be rationalised in the upcoming budget. He was confident that the launch of next generation mobile phone services would accelerate economic growth in the country.

In her remarks, Minister of State for Information Technology Anusha Rehman explained to the audience about the project to expand fibre-optic connectivity in areas without connectivity.

“The aim is to minimise the digital divide between the rural and urban areas. This project envisages establishment of telecentres in different parts of the country to provide e-services such as e-health and e-education and Nadra facilities,” she said. In the first phase, nearly 500 telecentres would be established around the country.

Published in Dawn, May 23rd, 2014