3G spectrum licenses auction concludes:Live Updates

Reason for 1 unsold 4g licence

“But we could only sell one licence in 1800MHz (4G) as Ufone was unable to qualify,” he said.

Shah explained that a bidder only qualified to bid for the 4G spectrum after winning a minimum 10MHz in the 3G spectrum. He said that despite bidding for 15MHz in the 3G spectrum, Ufone could only win 5MHz.

Disappointing but a sigh of relief, Zong always delivers.

So the 3G & 4G have finally been auctioned. However according to Dawn newspaper it would take a long time in trickling down the benefits of next generation services to laymen.
According to Dawn ,
The corporate clients and post paid customers are expected to be offered next generation services first and the prepaid customers would be given this facility in second phase.

Secondly, the more the govt is going to earn from the auction the higher would be the tariff in first phase.
The tariff would be three times higher and the date may also be limited.

Thirdly , in the first phase the service would be available in federal and provincial capitals only and would be expanded to other cities in the later phase. In the second phase which starts in a year time it would be expanded to 80 more major cities. And in the total four years it would be expanded to 90% of the country's population.

How would you comment on it ???

Bilal. said:

Zong 10 MHz for 3G and 10 MHz for 4G

Mobilink 10 Mhz for 3G

Telenor 5 MHz for 3G

Ufone 5Mhz for 3G

Zong kicked ***... I was hoping ufone to do better...

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U-fone targets price concious customers, shouldn't expect anything better from them. I was hoping for Moblink or Telenor getting 4G rather than Zong since these companies should have a better share of quality and brand conscious customers.

The quality of Zong today is better than mobilink and Telenor

When Zong first came into Pakistan, it was not a better choice because it was still expanding its business. But now I use Zong number more than my Warid number. I didn't heard about Wardi and 3G. I am glad I will get 4G because of my Zong number.

Aether said:

What we are seeing is...

5 million subscribers x 10,000 rupees per year = 50 billion rupees per year
50 billion rupees x 15 = 750 billion rupees in 15 years
750 billion / 100 = 7.5 billion dollars

and how much are they paying? about 300 million dollars for 3g connection and 220 million dollars for 4g. That is about 550 million dollars for Zong I think. On top of that, they can charge customers for extra minutes and other packages, they will obviously be employing hundreds of thousands of people to do this job, so wages and everything else will deduct major chunk of it.

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Average revenue per user is close to rs 200 per month in India (for 3G service) which comes to around 400 rs in pakistan.

5 million subscribers x 5000 rupees per year = 25 billion rupees per year
25 billion rupees x 15 = 375 billion rupees in 15 years
375 billion / 100 = 3.75 billion dollars

So, in 15 years these companies are doubling their money which is not a lot - considering cost of setup and overheads have to be derived from this revenue.

my2cents said:

Average revenue per user is close to rs 200 per month in India (for 3G service) which comes to around 400 rs in pakistan.

5 million subscribers x 5000 rupees per year = 25 billion rupees per year
25 billion rupees x 15 = 375 billion rupees in 15 years
375 billion / 100 = 3.75 billion dollars

So, in 15 years these companies are doubling their money which is not a lot - considering cost of setup and overheads have to be derived from this revenue.

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1 US $ = 96 PKRs

1 US $ = 61.1? Indian RS

Do the math.

my2cents said:

Average revenue per user is close to rs 200 per month in India (for 3G service) which comes to around 400 rs in pakistan.

5 million subscribers x 5000 rupees per year = 25 billion rupees per year
25 billion rupees x 15 = 375 billion rupees in 15 years
375 billion / 100 = 3.75 billion dollars

So, in 15 years these companies are doubling their money which is not a lot - considering cost of setup and overheads have to be derived from this revenue.

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in Pakistan when you buy 100 rupees balance you have only 58 rupees balance... (75 rupees balance + additional taxes something like that)

and I am positive that the calling rates in India must be cheaper as compared to Pakistan... Anyways, what I was trying to highlight is that it's a win-win situation for everybody.

Aether said:

in Pakistan when you buy 100 rupees balance you have only 58 rupees balance... (75 rupees balance + additional taxes something like that)

and I am positive that the calling rates in India must be cheaper as compared to Pakistan... Anyways, what I was trying to highlight is that it's a win-win situation for everybody.

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its the same in India, actual talk time is less than what you pay, rest are taxes, vat watever.
On one hand you want high revenue from 3g auction and on other hand you want cheaper tariff. How is that possible?
another thing, the people representing companies in auction are very rational people, they dont bother about govt target. If it makes business sense to buy at certain price they will do.

Seems like it went Dirt Cheap

Total Population 180,000,000

$100,000,000 People with Phone 3G = 55% Population @ 400 Rupee monthly plan

40 Billion Rupees ~ about 400 Million Dollars in 1 month

Licence is valid for 60 Months , so investor would get return on investment in 2 Month rest is pure profit for them

Minimum should have been 5 Billion Dollars , total value of Licence is 24 Billion to 36 Billion dollars over 60 months

Due to heavy population demographics in Pakistan


Month 1 : 400,000,000 USD
Month 2 : 400,000,000 USD

> Month 3 - Month 60 , all profit to company with Licence

Not to mention the telecom company would also sell advetisement on smart phone devices

5 Billion USD to 12 Billion was fair price for Pakistan 3G licence


Total Income Telecom could earn = 24 Billion Dollars in 60 months from subscription
Total Income Telecom could earn from (Advertisement /Promotionals = ??? Unknown Income

Money went to Pakistan = 1.2 Billion , a fraction of the income out of total potential value of 24 Billion Dollars

hinduguy said:

its the same in India, actual talk time is less than what you pay, rest are taxes, vat watever.
On one hand you want high revenue from 3g auction and on other hand you want cheaper tariff. How is that possible?
another thing, the people representing companies in auction are very rational people, they dont bother about govt target. If it makes business sense to buy at certain price they will do.

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Its not the same in India at all.

If u'll get a Rs100 recharge u'll get around Rs88 as the rate service tax is 12.36%.

Beside if u go for rs250+ recharge u'll get 100% talk time.

Call rates differ from company to company in airtel(which is the most expensive) its 1.5paise/sec but can be lowered to .50paise/sec if get a rs.45 recharge per month.

However, i agree with ur pov on 3g-4g auction but since Pak auction went too low in comparision to India, so data plans might be cheaper there but u never know as their taxes r way too higher.

Aether said:

in Pakistan when you buy 100 rupees balance you have only 58 rupees balance... (75 rupees balance + additional taxes something like that)

and I am positive that the calling rates in India must be cheaper as compared to Pakistan... Anyways, what I was trying to highlight is that it's a win-win situation for everybody.

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U mean to say that u guys pay a net 42% tax on a rs100 recharge right???

Some other poster was claiming it to be around 28% in Pak.

Btw whats the general call rate in Pak?

DESERT FIGHTER said:

1 US $ = 96 PKRs

1 US $ = 61.1? Indian RS

Do the math.

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You are right about the current exchange rate but I was making the figures simple to understand and hence the approximation. I was actually charitable about your average revenue per user (ARPU) which is Pk rs 250 only.

5 million subscribers x 3000 rupees per year = 15 billion rupees per year
15 billion rupees x 15 = 225 billion rupees in 15 years
225 billion / 100 = 2.25 billion dollars

If this downward trend continues then in near future you may reach "Barrier to Exit point". In this industry size matters. It is better to keep about 4 players and make it profitable for all.

Assault Rifle said:

So Pakistan raised US$1.1-1.2 billion from this auction.
BTW just for some info:India raised US$ 18 billion during spectrum auction in 2010 & US$10 billion during spectrum auction in 2014.

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Are you stupid? This isn't Indian related topic, moron.

@Aether
@DESERT FIGHTER
@iPhone
@hinduguy

Growth in number of subscribers and Average Revenue per User (ARPU) are indicators of how fast telecom revenues are growing in a market relative to subscribers. In Pakistan, like most emerging markets, the subscriber base grew exponentially however the revenues of telecom operators didn’t go up in same proportion. Keep reading to know why!

Declining Cellular ARPU in Pakistan and its Impact on Economy! [Part 1]