PTA Chooses U.S. Consultancy Firm for 5G Spectrum Auction in Pakistan
A leading U.S.-based international consultancy firm, ranked among the top two companies in technical evaluations and offering the lowest financial bid of $0.750 million, has been chosen to provide consultancy services to the Government of Pakistan. The firm’s expertise will support the country’s spectrum auction and the release of IMT Spectrum, aimed at improving Next Generation Mobile Broadband Services.
PTA Issues Letter of Intent
According to sources, the Pakistan Telecommunication Authority (PTA) has issued a Letter of Intent (LOI) to the selected consultancy firm, National Economic Research Associates (NERA). The firm is required to respond within seven working days to initiate the consultancy process. NERA will assist the government in planning and executing the 5G spectrum auction, which is targeted for completion by April 2025.
NERA’s Expertise and Competitive Bid
NERA, headquartered in the U.S. with offices in Europe and the Far East, is recognized as one of the top-ranking firms for spectrum consultancy. The company has vast experience in economic and commercial modeling for both the telecom industry and government organizations, particularly in spectrum evaluation. In the bidding process, NERA and Aetha Consulting Limited were equally strong in technical evaluations. However, NERA secured the contract by offering the lowest financial bid of $0.750 million.
Bidding Process and Financial Evaluation
On October 3, 2024, the financial bids of five international consultants were opened, all of which had qualified in the technical evaluation. After thorough due diligence and adherence to the Pakistan Procurement Regulatory Authority (PPRA) rules, no objections were raised regarding NERA’s technical and financial evaluations. Following this, PTA issued the LOI to the consultancy firm to move forward with the process.
International Firms in the Bidding Process
The five international firms that submitted technical and financial bids for the consultancy services included Aetha Consulting Limited, Detecon Consulting FZ-LLC, Frontier Economics Limited, KomKonsult (Private) Limited, and National Economic Research Associates Inc. The selected consultancy firm will be responsible for advising on policy actions and reforms aimed at increasing infrastructure investment, expanding broadband services, and ensuring sector sustainability and growth.
Consultancy Role in Spectrum Evaluation
The consultancy firm will analyze Pakistan’s current cellular/IMT spectrum assignments, comparing them with regional practices to identify gaps. Based on these findings, the firm will suggest a phased auction of paired spectrum in the 700 MHz, 1800 MHz, and 2100 MHz bands, as well as unpaired spectrum in the 2300 MHz, 2600 MHz, and 3500 MHz bands.
Spectrum Pricing and Payment Options
In addition, the firm will determine the per MHz spectrum price for the mentioned bands, both in USD and PKR, with future projections over the next three years. The analysis will use both demand- and supply-side models and propose innovative payment options, such as flexible installment plans. The consultancy will also provide scenario-based pricing options for per MHz spectrum, considering payment terms and rollout obligations.
Spectrum Valuation Report
Furthermore, the consultancy will prepare a comprehensive report on spectrum valuation, including base prices in USD and PKR for both paired and unpaired spectrum in the designated frequency bands. This report will also include projections for the next three years, helping guide the auction process and ensure a fair and competitive pricing structure for the spectrum release.
