The successful auction opens a modern window for the country’s electronic media industry
The auction for the Direct to Home (DTH) facility was concluded on due date but not without hiccups. The cable operators went on a strike as the new system would sideline them at first, and approached the Lahore High Court, which suspended the auction. The PEMRA then took up the cudgels at the Supreme Court and the apex court allowed a conditional auction with the proviso that the contracts should not be awarded to the successful bidders until the matter pending in the Lahore High Court was settled. All’s well that ends well, or even half as well, and Pakistan actually ended up with the biggest investment in its electronic media history, a whopping $450 million climbing to $750 million within two years, according to PEMRA experts.
There were three successful bidders who offered a grand total of Rs. 14.69 billion for this prize acquisition. Reportedly, the highest bid was made by M/S MAG Entertainment for Rs.4.91 billion, with M/S Shahzad Sky and M/S Star Time following with bids of Rs. 4.90 billion and Rs. 4.89 respectively. This huge investment translates into 15,000 new jobs, while ending the flight of between $200 million and $350 million annually to India by illegal Indian DTH service providers in Pakistan. Each license holder will also pay an annual fee of Rs. 10 million and two percent of its gross revenue after the first three years of starting operations.
But there is a downside, namely the identity of the real investors behind the deal. Control of the electronic media confers immense power, such as influencing public opinion on key issues, and people will be curious to know about the behind-the -scenes owners, if any, to make sure that this medium is in safe hands. In case of a foreign component, that too must be clearly spelt out in a transparent manner. But overall, this is a welcome development, that will induct new technology and distribution systems and the cable operators should move in step with them.