Jazz, the largest cellular network in Pakistan, being the only bidder in the recent auction of 4G spectrum conducted by the PTA has been notified as the ‘winner’ by default and without any bidding as there was no other competitor in the field.
According to details PTA has now officially notified Jazz as the winner of the spectrum and that the operator should start preparing to submit the spectrum fee within the next 30 days.
Reports claim that Jazz has two options for payment i.e to clear all dues upfront or pay 50 percent payment upfront and clear remaining 50 percent in 5 equal annual instalments with one year LIBOR plus 3%.
However sources revealed that Jazz will pay 50% of USD 324 million (USD 295 million spectrum fee + USD 29.5 million tax) within the next 30 days while remaining 50% of the payment will be made by January 2018.
The 4G spectrum assigned to Jazz would lie within the 1762.3-1785 / 1857.3-1880 range. Not to mention, Jazz can opt for any specific frequency within the assigned band. The operator will be officially awarded the spectrum after the spectrum fee is paid. It will then be able to use the 4G spectrum.
It is worth mentioning here that Jazz already operates 4G (acquired through Warid) in more than 50 cities with more than 1600 cell sites. The current investment made by Jazz indicates that its 4G coverage is likely to grow rapidly during 2017 and beyond.