The committee further directed the PTA to discuss tax laws with Federal Board of Revenue in contracts with cellular companies prior to the introduction of 3G technology in the country to avoid tax evasion. The PTA chairman was also directed to submit the report of alleged tax evasion of Rs 47 billion by cellular companies within one week.
The committee showed concern over the unnecessary delay in the auction process, resulting in huge loss to the country. The committee also raised questions over the consultants hired for 3G auction. Kamil Ali Agha said that instead of a firm, PTA hired individuals on $0.5 million for three months. It would be better, if PTA hire firm instead of individuals to complete the auction process in a better way.
Since 2007, the auction process was delayed due to one or the other reason, however now the process is near completion, said PTA chairman, adding that the Auction Supervisory Committee (ASC) on November 6, 2012 directed the Authority to hire individual consultant (s) instead of a firm. As per ASC directive, an advertisement was issued on November 7, 2012 in the print media, and on Public Procurement Regulatory Authority (PPRA) and PTA websites.
Pakistan Telecommunication Authority received 51 responses from the open market, out of which nine applicants were shortlisted by the short listing committee for different positions. The selection committee conducted the telephonic interviews through conference calls of the aforementioned candidates on November 16, 2012 and selected Rob Nicholls as Spectrum Valuation and Spectrum Regulatory Policy Advisor on a lump sum remuneration of $195,000 for three months. Dennis Ward was selected as Spectrum Auction Design Advisor on a remuneration of $180,000, while Martin Sims was selected Auctioneer/Auctions Software Advisor on $170,000 for three months. Pakistan Telecommunication Authority is authorised for payment of 15 percent advance of the consolidated amount for initial expenses, which will be adjusted accordingly against final monthly remuneration, Awan added.
Pakistan Telecommunication Authority further revealed that Advisory Group (Consultants) drafted IM of Cellular License/Spectrum Auction in 1900/2100 MHz AND 850 MHz. The draft IM has been circulated to stakeholders that include MOIT, Members of the Authority and relevant officers of PTA, on December 5, 2012 for valuable comments/suggestion.
The committee directed the Establishment Division to send the degrees of PTA chairman and its members to Higher Education Commission (HEC) for verification, and the later would have to report to the committee within 10 days in this regard.
Pakistan Telecommunication Authority had directed the mobile companies to stop all chats and services and night packages, which are contrary to the social norms and moral values with immediate effect. One company went to the court, however later it also withdrew its decision and now the night packages are stopped in the country, PTA officials maintained.