Auction of 3G licences: Finance minister forms body to resolve dispute

Pakistan's government has constituted yet another committee to resolve the dispute over auction of third generation (3G) advanced services mobile phone licences.

The cabinet committee, which was constituted by the prime minister to examine the auction of 3G spectrum and the Share Purchase Agreement (SPA) of Pakistan Telecommunication Company Limited (PTCL) with Etisalat, met with Finance Minister Dr Abdul Hafeez Shaikh in the chair. Sources said that pros and cons of the auction of 3G spectrum were discussed during the meeting. It was decided that a subcommittee would be formed, which would look into the details of the matter. They said that there were differences over the interpretation of an agreement between Pakistan and the international telecom player reached at the time of the sale of shares of the state-owned telecommunication company. The telecom giant was of the opinion that Pakistan could not sell a new telecom licence for any spectrum until seven years, which would end in March 2013.