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Zong issues legal notice to PTA for Defective 3G Spectrum

China Mobile Company, Zong has issued a legal notice to Pakistan Telecommunication Authority (PTA) and Frequency Allocation Board (FAB) for presenting faulty 3G spectrum in auctions in year 2014 and demanded a refund of $ 40 Million against the damage.

Zong claimed damages of $ 40 Million that caused income loss to the company. The sources told that the operator, PTA and FAB had been discussing solutions that could take a few months to attains decision jointly acceptable to all parties.

When approached, Chairman Pakistan Telecommunication Authority (PTA), Dr Ismail Shah told that Zong wrote a letter on this matter and compatible stakeholders held a meeting on it on October 12, for solving the matter smoothly. He added that two alternatives were under concern to sort out solution to this problem and added that it was not new as it occurred in many other countries after initiating new generation technologies.

Zong in its notice sent to PTA and FAB debated that the faulty spectrum for auction was presented in front of them despite the truth that intervene in the spectrum was there even before the auction and is still there despite various damage managing actions taken by the manager.

  • Zong was given frequency spectrum of 1920-1930 and 2110-2120 Mega Hertz (MHz) for 3G network and services. Furthermore, DECT 6.0 devices that are imported from USA and operate in 1920-1930 MHz, create interference in to Zong’s band.
  • The Zong’s legal notice asked the PTA to respond in two weeks as they have demanded to get allocation of 5 MHz of a alternative band in 1950-1955 MHz as well as 2140-2145 MHz band and rest of the price of 5 MHz which  Zong had already paid along with KIBOR adding 3 percent, must be refunded.

Zong must be given a compensation of 40 million dollars for:

  • Loss of revenues during last 12 months
  • loss of market share
  • incremental costs incurred during this time in network optimization, the cost of additional resources deployed to identify, evaluate and combat interference.

In case money is not refunded, then an equivalent amount of money should be rebated against various dues which Zong will have to pay to PTA. The letter read “Zong should be given a compensation of $ 40 million dollars for loss of revenues during last 12 months.”

But another PTA official reported that how it was attainable for an operator to send the legal notice out to regulator. It was an official letter sent by Zong out and if solution could not be attained then they would approach the court.