3G Auctions Delayed; Telenor Facing Financial Problem for 3G License
As you may already know that PTA is about to hold an auction for 3G License and according to the latest reports it seems like the auction is delayed for a few weeks further. PTA previously announced the 3G auctions in March but now the auction has been delayed until May this year.
It’s not a good time for Telenor as you might know that the Multinational network carrier has lost $330 Million Dollars in India when Supreme Court cancelled all of the 22 operating licenses of Telenor’s subsidiary Uninor. On the other hand, Telenor’s subsidiaries in Norway, Denmark, Hungry and Montenegro are also facing decline in profits. So, I am afraid that Telenor definitely is acute short of funds right now.
Can Telenor Afford To Buy 3G Liscense?
Let’s get back to the topic, when PTA is going to hold the 3G License auction, it does not look like Telenor can afford to get 3G License in Pakistan which will obviously cost a lot. Literally, the carrier will have to pay millions of dollar to the government of Pakistan as well the Chinese vendor ZTE, which has been selected to execute whole 3G network Swap project in Pakistan which will also cost $850 million.
Telenor Pakistan has been associated with its strategic partner Nokia Siemens Networks (NSN) since its beginning and currently, the company is unable to make due payments to NSN. So, we are assuming that Telenor is stopping these due payments to its vending partners like NSN to use this amount and buy the 3G license in Pakistan.
Recently, PTA has issued some details of the planned award of frequency in 1.9GHz and 3.5GHz bands. As I mentioned above, the expressions of interest is due by 30th March while PTA will announce the qualified bidders on 11th April and the final date of Auction is set to be 3 May 2012. Additionally, Auction for 3G licenses will be open for existing operators licensed for fixed local loop, wireless local loop and class value added services.
