The ministerial committee formed by President Asif Ali Zardari to decide the launch of third generation technology, also known as 3G technology, is all set to decide whether the government would allow new international IT companies to enter the bidding process for 3G licenses auction or not.
Decision soon
A source in the ministry of information technology and telecom (MOIT&T) told Profit that the proposal carrying three different scenarios had been forwarded to the ministerial committee formed by President Asif Ali Zardari, which would take a final decision soon on whether or not international bidders would be allowed to take part in the 3G licenses auction. On August 22, President Asif Ali Zardari ordered the formation of a committee comprising of Finance Minister Dr Abdul Hafeez Shaikh, Water and Power Minister Syed Naveed Qamar and representatives of private sector companies to go through the proposal of launching 3G technology, prepared by the information technology (IT) ministry, which was tasked to submit its recommendations to the government at the earliest. Pakistan lags far behind its neighbours in introduction of the long-awaited 3G technology, which was due for launch in 2008, but the government remained indecisive and it took the ministry three years to take the decision.
Revenue, jobs
The government expects to collect a minimum of $30 billion revenue from the sale of 3G technology licenses, which would not only inject a new vigour in the IT sector, but also help provide millions of jobs. The source said proposed scenarios would help the committee decide whether they would only call the incumbent players/stakeholders of the IT market or invite other national and international companies to take part in the competition of the3G licenses launching. “We have put up all facts to the government and nothing has been kept secret,” the source said, adding that the committee would have the final decision in this regard. He said it was the government’s considered opinion that 3G technology would be launched in Pakistan during the current fiscal year as an immediate rollout for the technology was essential to reignite the stagnant economy of information technology, which had almost reached at saturation stage.
Telecom sector agreement
There has been a debate whether the government could allow the international players in the 3G launch auction as telecom sector companies claim an agreement with the government that no new investor or company could be given a long distance and international (LDI) license till year 2013. When contacted, federal secretary, MOIT&T, Saeed Ahmed Khan confirmed that the ministry had forwarded the proposal to the ministerial committee, adding that three scenarios had been put in place in the proposal. Seed Ahmed, while dodging a question on the LDI licenses agreement, said the 3G launch had already been delayed for almost three years and it should have been launched in 2008 when the IT market had reached the saturation stage.
Service quality worry
Asked to comment on the decreasing trends of service quality of almost all telecom operators, Saeed Ahmed Khan said over the years there have been complaints against service quality and hidden charges of cell phone companies. He said the senate standing committee had also taken notice of these complaints and has directed the chairman of Pakistan Telecommunication Authority (PTA) to submit the required data to the committee. “Yes, there are lots of complaints on service quality which is declining due to unhealthy competition between telecom sector companies. We think this unhealthy competition must stop and rather it should be replaced by healthy competition. But the ministry can only give policy guidelines to PTA, which is an autonomous monitor and all decisions must be taken by PTA and not my ministry,” he added. Responding to another question about outstanding liabilities of telecom sector companies vis-à-vis Universal Service Fund (USF), the federal secretary said around Rs20 billion were outstanding of access promotion contribution (APC) charges against several telcos including Red Tone, Multi Net, World Call, etc. “Since the matter is sub judice, we have been trying to resolve it out of court, and two successive meetings have been held with the relevant stakeholders. Finally, they have agreed to pay the amounts but have requested making payments in installments. Some want 68 installments, some want to pay in 40 installments. But I have asked the PTA to com up with a uniform installment plan for all,” he said, adding that the ministry would submit the proposed installment plan to the IT minister, who would take the final decision.
why these stupid politians are involved in it??? we need 3g come on we are far behind in communication arena… throw out politicians…. they dont know how to deal business… bring some legitimate bodies into action.
bro they only know about curruption. and will decided that how much they can currupt from 3g
tonny u r right. they waiting and thinking how to make more n more commition to issue license.
u r rite my dear but there is no another way in pakistan tu establish a new business or technology with out pay the money of there ministeres or politician i hav great experience of it…..
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