Pakistan to Auction 4G Spectrum in May for $300 Million
Since Telenor bought 4G license recently on a huge $395 million price, and considering their cost cutting approaches nationally and internationally, chances of their bid are minimum because they require huge investment to expand its 4G coverage in Pakistan which is on initial stage right now.
Jazz, Ufone and Zong could be potential buyers. Jazz is currently integrating its spectrum and refarming as per needs. By adding Warid's spectrum Jazz now has options to provide 10 MHz 4G on 1800 MHz, 10 MHz 3G on 2100 MHz and 5 MHz of 900 MHz extra for either 3G or 4G. Jazz also requires huge money to expand 4G coverage in future because Warid's 4G is in very few cities. But still due to heavy pockets Jazz could go for it just to compete Zong in data services in future.
Ufone will fight for its survival. This is last chance of Ufone and they must get it at any cost. But question is Do they have as much money? Because their revenue is declining and their users are moving to other networks. And they still have a long long journey in 3G coverage. There are many key places in the country where Ufone has GPRS services only.
Zong is already providing 15 MHz 4G by refarming its previously 2G 5 MHz spectrum in 1800 MHz across various places in country to avoid congestion. The way they are selling MBB devices, they need more spectrum now. Secondly they have already expanded 4G coverage in most parts of the country and doesn't require extra investment now for expansion after bagging spectrum. Since this is last block in 1800 MHz which considered to be best frequency for 4G world wide and is contiguous to its existing spectrum. Since they have pockets full of money, have best data revenue among all, they will probably must go for it to stump themselves a true data company and most importantly to avoid another competition in 4G market from Ufone.
Let me know which one deserve to be a winner.
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