Ufone, Zong deposit $15 million each for 5G spectrum auction

Ufone and Zong have deposited mandatory pre-bid earnest money of $15 million each with Pakistan Telecommunication Authority (PTA) to take part in Pakistan’s 5G spectrum auction scheduled for March 10, Business Recorder reported, citing sources.

Combined deposits from both operators total $30 million and were made ahead of the February 27 deadline for submission of earnest money. Industry sources said Jazz is also expected to deposit the required amount within the next day or two and is unlikely to stay out of the auction.

Under PTA’s Information Memorandum, each prospective bidder must submit $15 million in earnest money to qualify for bidding process. Amount will be adjusted against final licence fee for successful bidders.

Government is targeting proceeds of more than $634 million from auction, depending on level of competition and final price discovery during bidding.

PTA has set a minimum success condition for auction, stating process will be treated as successful if at least 50% of total spectrum on offer is sold. Out of 597 MHz available, this means around 300 MHz must be sold.

Officials said participation from three operators would effectively ensure sale of around 300 MHz, which would meet minimum threshold set by regulator.

PTA officials also said participation of at least three cellular mobile operators is important for competitive bidding and for investor confidence in Pakistan’s digital plans.