ThePakistan Telecommunication Authority (PTA) has completed the structure of the future 5G auction and ensured that all the spectrum will be given out in contiguous blocks. This is a strategic step that will help in solving the concerns of operators on networks being fragmented, thus providing good quality and efficiency in the network.
The Assignment Stage: Top, Middle, or Bottom?
According to the PTA, the auction will include a specific Assignment Stage to determine the exact frequency positions within each spectrum band. Instead of bidding for specific frequency numbers, telecom operators will compete for relative positions:
- Top of the band
- Middle of the band
- Bottom of the band
The Authority clarified a key dynamic for bidders targeting the Middle position. When several bidders succeed in the spectrum of the same band, the precise frequencies of those which fall in the middle will be fully contingent on the success of the Top and Bottom allocations. Hence, the operators who will be competing to have middle slots will not be aware of their specific location in frequency when the bid is being done.
This assignment design can be used at any spectrum band including the critical 2600 MHz and 3500 MHz spectrums.
Regarding unsold inventory, the PTA has set specific rules:
- 3500 MHz Band: Any unallocated (unsold) spectrum will be placed at the Top of the band (defined as the highest available frequencies below 3580 MHz).
- Other Bands: The placement of unsold spectrum will follow the pre-defined rules outlined in the Information Memorandum (IM).
PTA 5G Spectrum Pricing Mechanism
The PTA also clarified the financial aspect of the Assignment Stage:
- Assignment Prices: These will be charged in addition to the base allocation prices.
- Opening Bid: The opening price for the assignment stage has been set at zero, allowing market forces to determine the value of specific positions.
