STAFF REPORT LHR: The governments plan of auctioning next generation spectrum (3G-4G) for telecom services could hit the future growth of the most vibrant tax generating service sector of Pakistan as the government is considering granting only three licences in this category.
Experts of the telecom industry who previously served in PTA at senior levels and policy making positions believe that the issuance of just three licences for 3G-4G spectrum will bring on a repeat of what had happened with Instaphone.
These former officials, who refused to be identified, think this three-licence plan will eliminate two of the existing five players from the Pakistan market in the next three to four years. At present, five international cellular services providers are operating in Pakistan, of which one has been up for sale for the last three years or so.