The first DTH license of Pakistan concludes at a bid of Rs 14.6 million
The auction for the first DTH license of Pakistan concluded on Thursday with amount of Rs 14.6 million accepted as the amount.
The auction was held for three Direct-to-Home licenses and began on Wednesday. It concluded after 15 hours of bidding. The highest bid was through Mag Entertainment for Rs 4.91 billion. M/s Shahzad Sky followed in with Rs 4.90 billion while Rs 4.89 billion were given by M/s Star time. Clearance shall be given by the interior ministry and security institutions after which the licenses will be issued.
The companies are supposed to submit 15% of the license fee in the first installment followed by 25% in the second installment and the rest in the third. The Chairman of the Pakistan Electronic Media Regulatory Authority, Absar Alam congratulated the companies. This, according to him is the game changer for the electronic media industry. It is also the biggest investment in Pakistan’s electronic media history. Absar adds that bidding was purely transparent at every phase while DTH services will bring a lot of employment opportunities. Due to this, the national economy and progress will be positively affected.
The overall investment for the licenses is $450 million ($150 million each) but it could rise to $750 million in the next 2 years. These estimates, however, are irrespective of the bidding proceedings. For the three DTH licenses 11 companies took part in the auction and the basic price was Rs 200 million. All companies were very enthusiastic as the launch had been pending since 2003.