ISLAMABAD, Aug 11: The Wireless Local Loop (WLL) phone service would help achieve access and connectivity in remote areas of the country at affordable rates, improve quality of service and promote economic development of the country.

Chairman Pakistan Telecom Authority (PTA) Shahzada Alam Malik said this while presiding over the bidding process for the award of frequency spectrum for WLL licenses for Faisalabad Telecom Region (FTR) and Central Telecom Region (CTR).

Mr Malik said the rural community and low-income groups of the society would benefit from the WLL service. The tele-density of rural areas is only 0.77 percent. He said out of 50,000 villages, 30,000 did not have phone facility and the introduction of WLL service will solve that problem.

He said this was for the first time that an open and transparent bidding for spectrum allocation was being held in the country. He said the auction of WLL spectrum was the final phase of deregulation process of telecom sector that would prove beneficial for a country like Pakistan because of a congenial environment prevailing in the country.

The bidding was expected to fetch an investment of Rs1.5 billion, he emphasized. He again held out the assurance that the authority would continue to cooperate with the telecom operators and provide a level playing field to all the stake holders for efficient performance of telecom system and services in the interest of service users.

Bidding for both Faisalabad Telecom Region (FTR) and Central Telecom Region (CTR) was held in 1.9 GHz, 450 MHz, 479 MHz and 3.5 GHz. Spectrum was allocated to the highest bidders according to their priority, while other bidders declared successful for the second round were asked to give the matching price for the grant of frequency subject to the availability of spectrum and requirements of the bidders.

In the spectrum of 1.9 GHz of FTR, three blocks of 5 MHz each were available, which were allocated to PTCL at the highest bid of Rs425 million. World Call Telephony and Telecard also agreed to pay the matching price for the award of spectrum.

In 450 MHz of the same region, out of three carriers of 1.25 MHz each, two carriers were awarded to PTCL, which gave the highest bid of Rs67 million for each carrier.

The third carrier in the same band was allotted to DV Com. Ltd, which agreed to pay the matching cost. In the spectrum of 479 MHz in the same region, only one block of 5 MHz was available, which was auctioned to WorldCall Telephony at the highest bid of Rs3 million.

In the spectrum of 3.5 GHz, seven blocks of 10.5 MHz each were available, which were allocated to Telecard at the highest bid of Rs4 million, while Burraq Telecom, Warid WLL, PTCL, Microtech Links, Sachal Technical Services and Zarco Telecommunication agreed to match the highest bid for the grant of spectrum.

In the spectrum of 450 MHz in the same region, two carriers of 1.25 MHz each were available, which were allocated to the highest bidder, DV Com, at a sum of Rs36 million and the 2nd carrier was awarded to Telecard on the matching cost.

In the spectrum of 479 MHz in the CTR region, only one block of 5 MHz was available, which was allocated to the only applicant, Telecard, at base price of Rs1.3 million.

In the spectrum of 3.5 GHz in the same region, out of seven blocks of 10.5 MHz each, four blocks were allocated to each Telecard, World Call Telephony, Burraq Telecom and Warid WLL at the base price of Rs580,000.

The bidding was witnessed by the telecom experts, representatives of media and telecom industry and government officials. The bidding will continue till August 21 with the exception of Sunday and gazetted holiday.