Daily Times

KARACHI: The Pakistan Telecommunication Authority (PTA) has been urged by a telecom operator to prevent or restrict merged entity Warid-Mobilink (Jazz) to participate in upcoming spectrum auction through the use of spectrum caps.

This month, the regulator will auction 850MHz of spectrum while a telecom operator in its proposals on Information Memorandum (IM) for the auction of spectrum has recommended spectrum cap, particularly for Jazz.

“IM needs to be revised with respect to outcome of post-merger-approval action-items related commitments which are: qualitative & quantitative assessment of spectrum by PTA (as required by CCP in its merger order).This is required in order to introduce spectrum caps for curbing chances of spectrum hoarding under this auction; review of cellular market (interconnection regime); merged entity’s Reference Interconnection Offer (RIO); merged entity’s tariff regulation (including compliance to price/tariff floors and ceilings)”, a telecom operator proposed.

It further added that given the concerns raised by the Competition Commission of Pakistan (CCP) at the time of the Mobilink/Warid (Jazz) merger and the lack of qualitative and quantitative assessment completed to date, there is genuine concern that any additional amassing of radio frequency spectrum by the merged entity (Jazz) will result in further and irreparable distortion to the market. As such eligibility criteria should consider the implications of further spectrum concentration that could arise as a consequence to the auction if measures are not adopted that are specifically designed to prevent this eventuality.

A rival of Jazz, suggesting spectrum caps said that this could range from exclusion from the auction for operators that already enjoy spectrum dominance to caps that may curtail the extent to which this becomes an irreparable situation. “There is strong evidence from around the world to support this position with Australia, New Zealand and the UK to name but a small number of auction in which the dominant licensee has been excluded or its ability to participate restricted through the use of spectrum caps”, it added.

Ineligibility of Licensees (with significant spectrum holdings) to participate in the upcoming Next Generation Mobile Services (NGMS) auction or its ability to participate restricted through the introduction of spectrum caps is recommended to be added, an operator advised PTA.

However, PTA said that there is no need to revise IM while qualitative & quantitative assessment of spectrum by PTA was subject to preceding conditions of the CCP order, which has not been quoted with reference to context.”It is also clarified that CCP determination did not put an obligation on PTA to carry out review of cellular market (interconnection regime). However, PTA will carry out review of interconnection regime”, PTA said.

PTA has already directed the Jazz to submit RIO, and merged entity (Jazz) is regularly submitting its tariff proposals to PTA for approval.

PTA while ruling out any possibility of spectrum caps clarified that the auction is open for all new entrants and existing cellular mobile licensees, in line with Policy Directive issued by government of Pakistan.