Jazz has decided to add advanced mobile internet on its network. The telecom company will be adding 4G spectrum in which it was the only bidder. As there was no other bidder in the market, Jazz will be given the 4G spectrum and no competitive bidding process will take place further.
The need to go for advanced mobile internet rose as Jazz plans to come up with few heavy data products in the future. And because of this, the company will need better internet speed as these projects will require high data usage along with high internet speed.
|Annual Cellular Subscribers – Jazz||3G Subscribers – Jazz||4G Subscribers – Jazz|
(Includes Warid Telecom subscribers as well)
The new products will be announced by the company once it gets the approval from the Pakistan Telecommunication Authority, which includes a new payment mode as well. The telecom authority in a statement said that they will be evaluating the bid in order to see all the required conditions have been met or not. If everything is clear, then the bid will be declared successful by PTA.
Jazz will be awarded the spectrum at the lowest price of $295 million. The price was set as such so that if multiple companies bid, then the bidding process will start from this price. As no other company made a bid, hence Jazz will be given the technology at the minimum set price.
Jazz will be given two options to pay if its bid is successfully approved by PTA. One method will be to pay the entire amount up front. The other method will be to pay 50% of the amount in advance and pay the remaining amount in five equal installments at the rate of Libor+3%. Jazz will also be required to pay 10% of the successful bid price in lieu of tax payable to the FBR.
Director Communication for Jazz Anjum Rahman said, “Bidding makes logical sense for the company. The world is moving towards digitalisation and we want to make sure we are in the right place when this wave comes to Pakistan.”
Jazz recently saw an increase in its subscriber base after its merger with Warid this year. Pakistan is slowly and gradually penetrating into the mobile internet industry with more than 39 million 3G/4G subscribers as compared to 29 million last year.