National Economic Research Associates Inc. (NERA), a leading international consultancy firm based in the United States, has accepted the Letter of Intent (LOI) from the Government of Pakistan to provide consultancy services for the country’s upcoming 5G spectrum auction. The release of the IMT Spectrum is expected to enhance Next Generation Mobile Broadband Services across Pakistan.
Details of the Agreement
According to official sources, the Pakistan Telecommunication Authority (PTA) issued the LOI to NERA, requiring a response within seven working days. NERA has accepted the LOI through the Public Procurement Regulatory Authority (PPRA)‘s e-Pak Acquisition & Disposal System (EPADS). It is anticipated that both parties will sign a formal agreement within the week. Following the signing, NERA will begin its consultancy work immediately.
Timeline and Deliverables
NERA is tasked with delivering a report on the valuation of the spectrum, which includes determining the base price and other technical aspects. This report is expected to be completed within 60 working days. The government aims to conclude the 5G spectrum auction by April 2025, marking a significant milestone in Pakistan’s efforts to improve mobile broadband services.
NERA’s Selection and Scope of Work
NERA was selected as the top firm in the technical bid and the lowest in the financial bid, proposing a consultancy fee of $0.75 million. Their role will be crucial in guiding the spectrum auction for the IMT spectrum, with the aim of improving next-generation mobile services in Pakistan.
NERA’s responsibilities include:
- Comparing Pakistan’s existing cellular/IMT spectrum assignments with regional practices to identify gaps.
- Proposing a phase-wise auction for paired spectrum in the 700 MHz, 1800 MHz, 2100 MHz bands and unpaired spectrum in the 2300 MHz, 2600 MHz, 3500 MHz bands.
- Determining the per MHz spectrum price in both USD and PKR for the relevant bands, with projections for the next three years. NERA will employ both demand and supply-side models and explore innovative payment options, such as flexible installment plans.
- Providing scenario-based options for spectrum pricing, rollout obligations, and payment terms.
Future Projections and 5G Rollout
The consultancy firm will also focus on creating a comprehensive valuation report that includes base pricing for the 700 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2600 MHz, and 3500 MHz spectrum bands. This report will provide pricing in both USD and PKR, along with projections for the next three years, ensuring a robust framework for Pakistan’s 5G spectrum auction.
NERA’s involvement is a key step towards the 5G rollout in Pakistan, with the auction expected to be completed by April 2025. This will likely lead to significant advancements in mobile broadband services, benefiting both consumers and businesses.
FAQs
1. What is NERA’s role in the 5G spectrum auction in Pakistan?
NERA will provide consultancy services for the valuation of the spectrum, including base pricing and technical parameters, to guide the government in the 5G spectrum auction process.
2. When will the 5G spectrum auction be completed in Pakistan?
The government aims to complete the auction by April 2025.
3. How much is NERA being paid for their consultancy services?
NERA has been selected with a consultancy fee of $0.75 million.
4. Which spectrum bands will be included in the auction?
The auction will include paired spectrum in the 700 MHz, 1800 MHz, 2100 MHz bands and unpaired spectrum in the 2300 MHz, 2600 MHz, 3500 MHz bands.
5. What will NERA’s report focus on?
NERA will prepare a report on spectrum valuation, including per MHz pricing, with future projections for the next three years and various payment options.
