ISLAMABAD: The Ministry of Information Technology and Telecommunication on Thursday issued a directive to the Pakistan Telecommunication Authority (PTA) and Frequency Allocation Board for renewal of operating licence of Jazz, which is set to expire on July 5.
The policy directive has stated that the renewal of licence will be in accordance with recent price benchmarks of renewal 2019 and spectrum auction 2021.
The last spectrum auction for each megahertz (MHz) frequency was $39.5 million for 900 MHz and $31m for the 1800 MHz.
The current 15-year operating licence was awarded to Jazz in 2007.
The policy directive has stated that renewal of licence is expected to generate $486.2m, and the payment terms will be 100 per cent upfront or 50pc upfront with remaining 50pc on five equal annual installments on LIBOR+3pc.
It said the renewal fee can be paid in dollars or in rupees, and the local currently will be calculated at the market exchange rate applicable at the time of payment. The licence renewed under this policy directive shall be technology neutral, allowing the flexibility to the company to adopt any upcoming technology in the telecom sector.
The ministry directed the Pakistan Mobile Communications Limited (Jazz) about its network problems faced by the consumers. It also instructed the mobile company to upgrade its system.
Talking to Dawn, Minister for IT and Telecommunication Syed Aminul Haq said the renewal fee was an important source of non-tax revenue for the government.
He said licences of Telenor and Warid were renewed last year for more than $440m and 50pc of which had been deposited in the national treasury.
Published in Dawn, February 4th, 2022