Pakistan raises $1.1 billion with 3G, 4G licence auction

ISLAMABAD: Pakistan on Wednesday raised more than $1.1 billion in its long-delayed auction of next-generation telecommunications licences, snapped up by the country´s four existing mobile network providers.

The government sold off four licences to provide 3G services, which allow broadband-speed internet on mobile phones, and one for superfast 4G connections.

The total is close to the $1.2 billion estimated for the sale in the federal budget for 2013-14 but below a bullish prediction of $2 billion made by Finance Minister Ishaq Dar in January.

The government of Prime Minister Nawaz Sharif was elected last year on a platform of boosting Pakistan´s floundering economy and ministers hope the licence sale will bring a boost by improving communications.

Pakistan has more than 132 million mobile phone subscribers but has lagged behind its neighbours in setting up 3G, which is now the norm in many countries.

Even Afghanistan, Pakistan´s far less developed western neighbour with a weaker economy and more fragile state, has had the technology since 2012.

The successful bidders for 3G services were Norway´s Telenor, Russian-owned Mobilink, Ufone, owned by the Pakistani government, and Zong -- part of China Mobile.

All four operators are already established players in the Pakistani mobile market.Zong also won one of two licences available for 4G services. The second will be auctioned later.

Sikanadar Naqi, a Zong advisor, told AFP the company would begin 3G services in the cities of Lahore and Karachi immediately.

The final bids for the 3G licences totalled $902.82 million, while the 4G licence went to Zong for the reserve price of $210 million.

Dar said the government would receive half of the money up front and the rest in five annual installments.

The chief executive of Mobilink congratulated fellow bidders and the Pakistan Telecommuncations Authority (PTA) on what he said had been a "transparent" process.

"After this auction, not only 132 million subscribers but the whole Pakistani nation has taken the road of progress," Rashid Khan said. A study by the UK-based Plum consultancy in August last year said 3G could boost Pakistan´s GDP by between 380 billion and 1,180 billion rupees ($3.8 billion to $11.8 billion) by 2020.Up to 900,000 extra jobs could be created and between 23 billion and 70 billion rupees in additional tax revenue generated by 3G, the Plum report said.

Cheap mobile phone telephony took Pakistan by storm in the early 2000s, but only 3.3 million people are signed up to broadband internet, according to PTA figures, offering a huge, untapped market for faster web speeds.

Information Technology Minister Anusha Rehman hailed the auction as a boon for Pakistanis unable to afford computers and fixed-lined internet connections.

"Through this, the cheap mobile phones of the under-served people having a price of eight to ten thousand rupees will be become their computers," she said.

But while many welcomed the long-awaited advent of 3G, some on social media lamented the continuing government ban on video-sharing website YouTube.

Ogra to deliberate on granting LNG imports licence today

ISLAMABAD: All the members of Oil and Gas Regulatory Authority (Ogra) are set to put their heads together here in Islamabad today (Tuesday) with Saeed Ahmad Khan in the chair to decide if the application of Elengy Terminal Pakistan Limited (ETPL) of Engro Company seeking licence for carrying out LNG import activities and LNG terminal construction should be returned as it is incomplete, irregular and void.

The authority would also decide as to whether the interveners should also be provided with complete application or not.Ogra Chairman Saeed Khan confirmed to The News that the authority will assemble today (Tuesday) and examine the LNG project for which a working paper is being made.

“We will decide the fate of the licence keeping in view provisions of Ogra Ordinance and LNG policy,” member oil and vice chairman of Ogra told The News.The regulator has already held a public hearing in Karachi on March 25 wherein 6 interveners came up with their reservation about the site of the proposed LNG terminals.

The Ogra also visited the site of the proposed LNG terminal at Port Qasim in Karchi. The working paper to be pitched before all the members of the Ogra, available with The News, unveils that the authority will ponder over some vital points like the proposed LNG terminal is well within the danger zone of 2000m. Asked is proposed terminal in line with master plan of Port Qasim Authority?, the PQA replied in a letters in the negative.

The authority will assess, as per the working paper, as to why it was essential to have separate LNG zone and why has not Ministry of Defence insisted on it?

The authority will also deliberate on the development according to which ETPL was directed by PQA to shift their project to LNG zone and is PQA now changing its stance? Ogra members will also discuss as to whether the fresh studies are required for the site which should be in LNG zone.

The PQA has not yet cleared the proposed site and will certainly not issue unconditional NoC given so many deficiencies with the applicant.The working paper also discloses that hydraulic and traffic studies are required before the issue of PQA NoC and they have not been provided to Ogra by the applicant. Environment concerns have yet to be addressed by the applicant.

The paper also says that the proposed Elengy site would need extremely large volumes of dredging which shall disturb the seabed geography and shall give rise to variable currents emerging with totally silting patterns. This may result in reduction of designed existing depths at FAP terminal leading to server commercial and financial losses.

The working paper that OGRA will deliberate also mentions that the transition of LNG vessels in PQA will render the channel suspended for other commercial traffic and port users.

EVTL CEO Imranul haq when contacted responded in detail saying that there is no requirement of 2000 meters distance that has been dubbed danger zone as in Argentina port, various terminals including LNG terminals have been established at a distance of 200 to 300 meters.

Haq said that no doubt the master plan of PQA does not include the LNG terminal in it. He, however, further said that FAP terminal was also not included in the master plan. In case of any untoward incident, there are three levels of security embedded in the security apparatus and even in case of any worst scenario, the explosion will take place in burning basin only that will not affect the terminal and others.

Haq said that master plans keep on changing keeping in view the requirements. Asked as to whether Ministry of Defence has given Elengy a green signal for LNG terminal at Port Qasim, he said that Elengy cannot approach the ministry directly as it is the duty of Port Qasim administration. However, he mentioned that in a meeting of the task force on LNG, representatives of the Ministry of Defense had indicated that it has no objection and when the application comes to the ministry, it will issue the NoC to Elengy for LNG project.

About hydraulic and traffic study, he said that it is not the duty of Elengy, rather it is duty of Port Qasim Authority. He, however, said that there is no need of hydraulic study as it is done for new port, but for Elengy, there is already a jetty which will be used. So Elengy needs not conduct the study, he said. About the traffic study, he said that the traffic of ships has reduced over the year and in Port Qasim about 35-42 LNG vessel will enter in one year. He also said that the port needs to enhance its capacity to handle the traffic in channel.