Jazz gets 15-year licence renewed for $486.2m
The Pakistan Mobile Communications Limited (Jazz) signed an agreement for the renewal of its operational licence with the Pakistan Telecommunication Authority (PTA) on Tuesday, committing the highest ever investment in the telecom sector.
The 15-year licence has been renewed for a fee of $486.2 million. Jazz has deposited 50 per cent of the amount (Rs44.54 billion or equivalent to $243.1n), while the remaining amount will be paid in five equal annual installments along with applicable markup.
The renewed licence has enhanced terms and conditions for coverage and Quality of Service.
In a tweet, Jazz CEO Aamir Hafeez Ibrahim said the company has committed $486m to renew its spectrum for another 15 years, which is the largest investment in the history of the telecom sector in Pakistan.
“It reflects our commitment to improving our services to 75m customers,” he added.
The licence renewal ceremony was held at PTA. It was attended by Federal Secretary IT & Telecommunication Dr Sohail Rajput, PTA Chairman Major General (retd) Amir Azeem Bajwa and PTA Member Compliance & Enforcement Dr Khawar Siddique Khokhar. Senior officials of Jazz, PTA, IT Ministry and the Frequency Allocation Board were also present at the event.
The policy directive has stated that renewal of licence is expected to generate $486.2m, and the payment terms will be 100pc upfront or 50pc upfront with the remaining 50pc on five equal annual installments on LIBOR+3pc.
The current 15-year operating licence was awarded to Jazz in 2007, which is set to expire in July this year.