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The Pakistan Telecommunication Authority (PTA) has categorically clarified that spectrum caps will be strictly enforced at the point of bid submission in the upcoming spectrum auction, addressing key concerns raised by mobile operators in the Information Memorandum (IM).
In its written responses to operators’ queries, the PTA said increased bid requests will only be processed if they do not violate spectrum caps, adding that the auction system’s activity rules prevent any breach of spectrum limits during all stages of bid processing. The authority noted that the bid processing algorithm can explicitly state that bids are accepted only if they comply with both activity rules and spectrum caps, without changing the substance of the rules.
The PTA also confirmed that bids to maintain position may only be submitted at the prevailing Clock Price, removing any ambiguity around bid pricing during the clock auction phase.
Further clarifying the auction mechanics, the regulator said the Electronic Auction System (EAS) continuously re-tests the bid queue, starting from the lowest price point, after any bid is fully or partially processed. Bid processing continues until either no bids remain or all remaining bids cannot be processed.
Regarding processed price determination, the PTA confirmed that when at least one decrease bid is fully or partially applied, and demand equals supply, the processed price will be set at the highest bid price of the applied decrease bids. The authority said this clarification will be incorporated into the final IM.
The PTA noted that these responses will be further explained during the Information Session on February 16, the Bidder Seminar on March 4, and the Mock Auction on March 5, as the process moves closer to the long-awaited spectrum auction.
