Issuance Of 3G & 4G licenses may hit delay
ISLAMABAD, May 7 (Online): Issuance of licences to cellular operators of much-trumpeted 3G, 4G technology may hit delay as successful bidders at the auction held last month have yet to deposit advance tax.
According to a private TV channel Pakistan Telecommunication Authority (PTA) sources said four companies, Mobilink, Telenor, Zong and Ufone, which emerged victorious in the bidding process have yet to pay 10 percent advance tax – a requirement for the issuance of licence.
PTA sources said that notices have been issued to all the four companies for the payment of advance tax.
They further said that only Telenor has paid 50 percent of the bid amount while rest of the companies have paid only the earnest money deposited at the time of auction.
Sources said that Mobilink has to pay $29.5 million, Zong $58.6 million while Telenor and Ufone each have to pay $14.75 million as advance tax.
Non-payment of the advance tax and delay in deposit of minimum 50 percent payment is holding up issuance of the licences, PTA sources said.
Under the PTA rules, companies can soft-launch 3G, 4G technology – which some companies have already done – but they can’t commercially charge their consumers unless a license is issued.
In April, Pakistan government sold three 3G licences and one 4G licence at a total of $1.112 billion.