STAFF REPORT IBD: The concern of Senate Standing Committee on 3G/4G to set $210 million is shocking for cellular operators who are already reluctant to launch the new technology on their networks, amid fears of low expected earnings from the customers against heavy investment on infrastructure.
According to market experts, the 3G/4G licence fee is likely to thwart the regard of 2G prices if uncommon investors do participate in the bidding process to drive the base price high as number of licence are less than the expected bidding companies.
It is to be mentioned here that the Senate committee members had sought raise in the base price of new licence without taking into cognizance that cell phone is the chief taxpaying sector in the country. Majority of the operating companies had paid $291 million for 2G licence and have invested billions of rupees.
Besides, this sector has generated direct and indirect employments and handsome revenues to the government.
According to experts, the new entrants will shy away starting their operations in the country having stiff competition amongst five players with low earnings against high cost of operations.
They have asked the government to facilitate the existing players for launching new technology in the country rather than discouraging them with heavy fees and regulatory charges.