Bierhoff defends Ozil over Germany boos

The former striker was in Stuttgart for the 1-0 friendly win over Chile and was bemused as supporters jeered the Arsenal playmaker when he was withdrawn late in the game

Oliver Bierhoff "cannot understand" why Mesut Ozil was whistled by fans during Germany's 1-0 win overChile on Wednesday night.

The Arsenal playmaker was named German Footballer of the Year in January and received his award on the pitch before kick-off before setting up the only goal of the game following an intense spell of early pressure from the Chileans.

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But he was roundly jeered when he was substituted in the 89th minute and Bierhoff, who won 70 caps for Germany and was in Stuttgart for the match, cannot understand the supporters' complaints.

"At the time, with the score [at 1-0], I did not understand the whistles. I find it a pity that a player like Mesut is singled out," he told Der Westen.

Joachim Low's men were often on the back foot against Chile, who pressed high up the pitch and carved out a number of openings, and the fans at the Mercedes Benz Arena also made their frustrations known by booing the whole team at the final whistle.

Low admitted that the South Americans were "clearly better" than Germany in the second half, while Philipp Lahm accepted that his side were "lucky" to record victory and that the supporters are entitled to feel aggrieved at their performance.

"The fans paid to see this match and they wanted a better performance, you have to accept [the jeers]," he told ARD. "We have some work ahead of us and we are aware of that."

pakistani Team injuries

The list of injured players for the Pakistan squad includes opening batsman Ahmed Shahzad, who struck a century in a record chase against host Bangladesh. PHOTO: AFP

KARACHI: 

Pakistan are facing injury concerns ahead of the Asia Cup final against Sri Lanka, as four of their players are striving to attain complete fitness for Saturday’s all-important clash in Dhaka. 

The unfit players include all-rounder Shahid Afridi, who played key role in the team’s entry to the final with his explosive knocks against India and Bangladesh. In-form opening batsman Ahmed Shehzad, who struck a century in a record-chase against the hosts, is also nursing an injury.

Opening batsman Sharjeel Khan, who missed the fixture against Bangladesh after injuring his leg on the field against India, and Mohammad Talha, who could bowl just seven overs against the archrivals on debut, are also struggling to attain full fitness.

A team official confirmed the injuries to the players, while hoping that they would get fit for the final in time.

“Afridi has a groin problem that flared up during his innings against Bangladesh,” the official told The Express Tribune.

“Shehzad is suffering from a shoulder injury. He took painkillers and went out to bat in considerable discomfort against Bangladesh.  He showed a lot of courage by staying on the crease for a long time during his century.

“He only trained lightly today [Thursday],” said the official before hoping for the availability of the following players for the final.

Afridi looks forward to title-clash  

Afridi, who has made a stunning impact on the tournament, spoke to the media after the team’s training session, hoping to recover from the injury.

“Yes, there is a groin problem but it’s not a major issue,” he told reporters.

“I am hopeful of recovering from the injury in a day’s time.”

Commenting on his game changing knocks, Afridi stated that winning the Asia Cup was important for the team and he just wanted to give his best efforts.

“It’s an important tournament for us and I am happy with my timely performance.”

The former captain said it had always been his target to make vital contributions for the team in both bowling and batting.

“It’s not possible to perform every day, but I am working very hard. I am making a lot of effort in bowling also.”

‘I don’t need a coach’

Afridi, who has played in 377 One-Day Internationals, said he was at a stage in his career where he did not require coaching.

“I have been playing for a really long time,” he said. “I am better off coaching myself. All I need is the support of people around me.”

Speaking on the high octane Indo-Pak matches, he said the crunch encounters were all about handling the pressure.

“The team that handles pressure well on that day wins.”

When asked about the International Cricket Council (ICC) World Twenty20 fixture between the arch-rivals on March 21, the all-rounder said he was not looking at things beyond the Asia Cup final at the moment.

“Our focus is on the final. We’ll speak about that when the time comes

World Cup friendlies: Pedro strike hands Spain win over Italy

Spain's forward Pedro Rodriguez celebrates after scoring during the FIFA 2014 World Cup friendly football match Spain vs Italy at the Vicente Calderon stadium in Madrid on March 5, 2014. PHOTO: AFP

MADRID: Pedro Rodriguez’s goal was enough to give World champions Spain a 1-0 win over Italy in their final game before coach Vicente del Bosque names his squad to defend their title later this year in Brazil.

Atletico Madrid striker Diego Costa was handed his debut on home soil at the Vicente Calderon Stadium in what was a rematch of the Euro 2012 final which saw Spain successfully defend their title.

However, Costa failed to make much of an impression and it was Spain’s top goal scorer in qualification, Pedro, who made the difference when his shot squirmed under Gianluigi Buffon just after the hour mark.

“I am very happy to have made my debut with Spain and to gain confidence,” Costa told Spanish TV station Telecinco.

“The manager believes in me and I am going to try to play as well as I can with Atletico so I can go to the national team in the best condition.”

Meanwhile, England manager Roy Hodgson drew encouragement from his younger players’ performances after seeing his side edge Denmark 1-0 in their final game before he selects his World Cup squad.

England finished the game with six players aged 25 or under on the pitch and Hodgson believes that their displays against an obdurate Denmark side augur well for the World Cup in Brazil.

“You can’t get me to say anything negative about any of the young players on show today [Wednesday],” he said.

“At one stage we only had Gary Cahill, Joe Hart, Glen Johnson and Steven Gerrard who would consider themselves seniors.”

First-half burst helps France see off Dutch

An impressive France proved too strong for the Netherlands in Paris as first-half goals from Karim Benzema and Blaise Matuidi sealed a 2-0 friendly win.

Benzema volleyed home the opener just after the half-hour mark and Matuidi added another three minutes before the interval, and the visitors never came back into the game as they slumped to a first defeat in 19 matches.

In another encounter, Neymar scored a hat-trick as Brazil routed South Africa 5-0 Wednesday but a host of World Cup rivals were facing searching questions 99 days out from the showpiece event after a night of below-par performances.

On the other hand, Germany were booed off after failing to impress in a fortunate 1-0 win over fellow World Cup side Chile as the South Americans dominated their hosts in Wednesday’s friendly

Raw nerves as Russian 'occupation' settles on Crimea

Ukrainian soldiers (R) stand guard inside their base blocked by Russian troops in Perevalnoye, near Simferopol, on March 6, 2014. PHOTO: AFP

SIMFEROPOL: A week into Moscow’s “occupation”, a wary stalemate has settled over Crimea but nerves are raw as heavily armed Russian forces face off with Ukrainian troops in the Black Sea peninsula.

So far, Russia’s de facto takeover of Crimea has been surprisingly peaceful, with only a few warning shots fired into the air.

But tensions remain high and residents worry that with so many fingers on triggers, it may not take much to set off real violence.

“For now, life is like normal — people are working, going to school, shopping,” said Lydia Kuzminichna, a 72-year-old running errands in the regional capital Simferopol.

“But of course we are worried, anything can happen. It’s a very dangerous situation.”

Across the rugged peninsula, armed men in military uniforms and wielding assault rifles have surrounded Ukrainian military installations. Ukrainian authorities say they number in the thousands.

Moscow denies the men are Russian troops and the soldiers themselves are tight-lipped. But with their matching uniforms, sophisticated equipment and professional bearing, there is little doubt they are Russian troops and not rag-tag militia.

Inside the bases, nervous Ukrainian soldiers are standing their ground, refusing to surrender or hand over their weapons, but in most cases clearly not ready to hold off a full-out assault.

“We’re just not prepared to face up to the Russian special forces,” a captain inside the besieged Belbek base near Sevastopol, Andrei Matchenko, told AFP this week. “This isn’t what we are trained or equipped for.”

Convoys criss-cross Crimea

Convoys of military transport trucks carrying the Russian forces can be seen criss-crossing the peninsula, which — linked to the Ukrainian mainland by only the narrow Isthmus of Perekop — is relatively easy to isolate from the rest of Ukraine.

The Russian forces fanned out across Crimea after pro-Moscow gunmen on February 27 seized key government buildings following the ouster of Ukraine’s Moscow-backed president Viktor Yanukovych.

A pro-Russian prime minister was installed and a referendum has been called for March 30 on proclaiming greater autonomy for Crimea.

Moscow’s forces have been largely welcomed by Crimea’s ethnic Russians, who make up nearly 60 percent of the population and who feared similar unrest to the violence in Kiev last month that left nearly 100 dead.

“If there were no Russian soldiers it would be like Kiev here, exactly the same,” said Sergei, a Simferopol resident in his late 30s.

“People started to calm down when the soldiers arrived.”

Russian residents said they feared losing out to Crimea’s large Ukrainian minority, which accounts for about a quarter of the region’s residents, and to the mainly Muslim ethnic Tatars who make up 12-15 percent of the population.

The diverse mix reflects the turbulent history of Crimea, which fell to Russia in the late 18th century when Moscow defeated the Tatars allied with the Ottoman Empire.

The peninsula was the scene of heavy fighting during the 1853-56 Crimean War, mainly remembered in the West for Florence Nightingale, a pioneer of modern nursing, and Britain’s suicidal Charge of the Light Brigade against Russian forces.

Crimea remained part of Russia until Soviet leaders handed it to Ukraine in 1954. After the Soviet collapse, Russia was allowed to maintain its Black Sea Fleet at Sevastopol, its home for some 250 years.

Memories of deportation

The Tatars, most of whom seem resolutely set against Crimea re-joining Russia, make the question of the peninsula’s future especially difficult.

Their presence is impossible to ignore — the Muslim call to prayer echoes through Simferopol five times a day from the Kebir-Jami Mosque, built in 1508 and the oldest building in the city.

“This is a difficult time for us,” 76-year-old Fevzi Yakubov, a prominent Tatar and rector of Crimea’s engineering university, said outside the mosque.

“We are Ukrainians and we are patriots of our homeland.”

For many in the community, the Russian troops have revived painful memories of the mass deportation of the Crimean Tatars to Siberia and Central Asia by Stalin in 1944.

Yakubov, seven at the time, was among those deported and did not return from Uzbekistan until he was in his mid-50s.

“There are of course fears of these things happening again. But it was a long time ago and the world is too open now for that,” he said.

“We must find a way to calm this down,” he said. “Thankfully no one was been killed or wounded yet. We need to work together to make sure this does not get worse

Crimean MPs vote to join Russia, US unveils sanctions

A man holds a Soviet Union flag as he attends a pro-Russian rally at the Crimean parliament building in Simferopol March 6, 2014. PHOTO: REUTERS

SIMFEROPOL: Lawmakers in Crimea voted to join Russia on Thursday, escalating tensions in Ukraine as the new government in Kiev said it wanted to sign an EU agreement “as soon as possible” and the US announced sanctions to punish Moscow.

Pro-Russia lawmakers said they would also put the question of secession from Ukraine to a referendum on March 16, as the worst East-West crisis since the Cold War deepened with Russian forces maintaining their grip on the region.

The motion was passed by 78 out of 86 MPs in favour and was immediately condemned by Ukrainian authorities as “illegitimate”, while the large ethnic Tatar minority in the Black Sea peninsula said they would boycott the vote.

Gunmen at an improvised checkpoint on Crimea’s regional border with the rest of Ukraine also on Thursday blocked a group of 40 unarmed military observers from carrying out an inspection mission requested by Ukraine’s government.

A spokeswoman for the Organization for Security and Co-operation in Europe, Natacha Rajakovic, said they were “prevented from entering Crimean territory” and would stay in a hotel in nearby Kherson to “decide on next steps”.

A Western diplomatic source said that the gunmen, who did not identify themselves, were “very professional, very well-trained — this was not some militia”.

Wider diplomatic efforts to defuse the crisis also appeared to stall, with a second round of talks between US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov in two days ending with no agreement.

With an executive order, US President Barack Obama also approved possible visa bans and property sanctions against people seen as “directly involved in destabilising Ukraine, including the military intervention in Crimea”.

The measures were “in response to Russia’s ongoing violation of Ukraine’s sovereignty,” the White House said.

European Union leaders at a hastily convened emergency summit in Brussels also pushed for Russia to opt for dialogue and de-escalation, while warning that sanctions were in the offing should Moscow refuse a diplomatic solution.

“We have got to make sure we get Russia and Ukraine talking to each other,” said British Prime Minister David Cameron.

Invited to attend the summit in a strong symbolic gesture, Ukraine’s interim premier Arseniy Yatsenyuk accused Russia of continued provocation around Ukrainian bases in Crimea.

“This is not only a Ukraine-Russia crisis, it is a crisis in Europe,” said Yatsenyuk, who took over just last month after former pro-Moscow president Viktor Yanukovych fled to Russia following three months of deadly protests.

The demonstrations began in November after Yanukovych abruptly turned down an EU association agreement and instead negotiated a bailout from Russia and quickly snowballed into a wider uprising against his leadership.

Yatsenyuk said in Brussels that Ukraine was now “determined” to sign the agreement “as soon as possible”.

The bloc’s 28 leaders met a day after the European Union executive offered Ukraine a huge 11-billion-euro ($15 billion) aid package to support its ailing economy and help pay massive gas bill arrears to Russia.

Europe’s G8 members, Britain, France, Germany and Italy, have along with the US, Japan and Canada, suspended preparations for a June summit to be hosted by Putin in Sochi, though Germany and Italy had to be prodded to agree.

EU nations remain divided on how to respond to Russia, with new EU members from eastern Europe once in the Soviet sphere far tougher than the likes of France and Germany.

Lithuanian President Dalia Grybauskaite called for a harsher EU response, warning that a “dangerous” Russia was trying to redraw Europe’s borders.

“Today it is an open and brutal aggression, that is exactly what is happening and we need to understand it,” she said.

“But today I do not see a prompt reaction,” she said, adding: “Russia today is dangerous. Russia today is unpredictable.”

The epicentre of the crisis has been Crimea — a rugged region seized by Russia in the 18th century and annexed to Ukraine in Soviet times as a “gift”, which is still home to Russia’s Black Sea Fleet.

Russian forces have surrounded Ukrainian military bases in Crimea for days and on Thursday even scuttled an old warship at the entrance of a lake, trapping Ukrainian navy vessels.

Inside the besieged Ukrainian bases, nervous soldiers were standing their ground, refusing to surrender or hand over their weapons, but in most cases clearly not ready to hold off an all-out Russian assault.

“It’s extremely tense and I consider it a miracle that bloodshed has been avoided so far,” Tim Guldimann, personal envoy of the Swiss chair of the OSCE, said in Kiev after returning from Crimea.

Guldimann said he cut short his visit after UN special envoy to Crimea Robert Serry was forced to leave on Wednesday upon being confronted by gunmen who said they had orders to take him to the airport.

Serry took the first flight out of the region — to Istanbul — but returned to Kiev on Thursday.

“My mission is not yet over,” Serry told reporters at the airport. Asked if he would return to Crimea, he answered: “No I don’t think so”.

Violent protests have also broken out in cities in mainly Russian-speaking eastern Ukraine, where several local government offices have been taken over by crowds of angry pro-Russian militants waving Russian flags.

There has been concern among observers about the possibility of a Russian intervention in other parts of eastern Ukraine outside Crimea using the defence of the rights of pro-Moscow militants as justification.

Putin has condemned the changeover of power in Kiev as “an unconstitutional coup” but said a full-scale military intervention in Ukraine would be a “last resort”.

That threat is darkening the mood in Yalta, a seaside resort in Crimea where the post-war borders of Europe were decided and the spring sun has just started to shine.

“We are against Putin’s aggression, we fear that it will scare tourists away,” said Lilia Ivanova, manager of a local Intourist travel agency.

“There is no tourism where there is terrorism,” she said.

No behind the scene role for Pakistan in Afghanistan reconciliation talks: FO

Foreign Office spokesperson Tasneem Aslam says sedition charges for cheering a team in a cricket match is very unfortunate. PHOTO: FILE

ISLAMABAD: Pakistan on Thursday said that while it would facilitate reconciliatory talks in Afghanistan, it clarified that it was playing no role behind the scenes.

The foreign office spokesperson during the weekly briefing on Thursday said that the reconciliation process has to be Afghan-led and Afghan-owned.

“We will give whatever assistance Afghanistan requests us for and whatever we can possibly do.”

However, she pointed out that Pakistan was not involved behind the scenes. “Behind the scene, we are not involved.”

Asked about securing the Western border with Afghanistan about the post-2014 scenario, the spokesperson said it is not clear what will happen beyond 2014 but Pakistan hoped to see reconciliation efforts that would stabilise the country.

“Whether there will be a draw down or complete withdrawal.”

“Elections are going to take place, hopefully peaceful elections.”

She added that Pakistan hoped there would be national reconciliation efforts which would help stabilise the situation. “We do not want to see and it is our hope as well there will be no civil war in Afghanistan which would have very serious impact on Pakistan,” and hoped to avoid a doomsday scenario.

“We are in contact with the Afghan authorities as well for better management of our border. Our Secretary Interior was in Afghanistan and he had very useful discussions,” and both are working on initiatives that would ensure that our border is managed and monitored better.

Kashmiri students welcome to study in Pakistan

Responding to reports that some Kashmiri students were facing legal prosecution for celebrating Pakistan’s Asia Cup victory over India, the foreign office spokesperson said that these students were Kashmiris celebrated Pakistan’s victory as they always do among other Indians

“I do not have corroborated information but if these Kashmiri students wish to come and pursue their studies in Pakistan, our hearts and our academic institutions are open to them.”

Asked about the sedition charges brought against those students, the spokesperson said it was unfortunate. “Sedition charges for cheering a team in a cricket match? It is very unfortunate!”

Kidnapped Iranian guards

Asked about the action taken by security officials to recover missing Iranian guards, the spokesperson said that Pakistan still has not been able to establish if they were actually brought into Pakistani territory.

“We are in contact with the Iranian authorities. A task force was established after the border committee meeting. They are exchanging information. Search operations have also been conducted.”

She said that reports of the guards being recovered was deemed inaccurate by the Iranian government and the embassy in Islamabad.

About the pipeline, she refuted reports that a third party was interested in jumping in.

Ambassador, commercial attaché in Stockholm recalled

In an unusual move, the foreign office on Thursday confirmed that government had recalled its ambassador and commercial attaché from Sweden following an internal probe over the mission’s performance.

“Yes, the Ambassador and the Commercial Attaché have been called back. There were some administrative issues for some time which were affecting the Mission’s performance. “

The spokesperson explained that an investigation team had been sent by the Prime Minister himself to probe the mission and fix responsibility.

“As a result of that investigation, it was decided that both would be recalled.”

On replacements, the spokesperson said that it may take at least three weeks to appoint a new ambassador.

“The process for appointment of a new Ambassador would start now but obviously, it takes time. There would be a recommendation and then we would seek agrément. Ambassadorial assignments are announced only after receiving agrément from the host governments which makes the appointment final.”

Asked about any disciplinary action that could be taken against the recalled Ambassador, the spokesperson said that action had already been taken.

“There were not any activities that would require action against him. There was an Administrative issue. Investigations have already been conducted and action has been taken as a result of those investigations.”

No arms race

Refuting the notion that Pakistan wants to engage in an arms race in the region, the spokesperson said that what arms Pakistan does purchase is with a view towards conventional stability, and the visit of the Chinese military personnel was part of that.

“While we do not want to indulge in an arms race and spend our meager resources on buying arms, at the same time we cannot be completely oblivious to what is happening in the region. We have to keep a level of conventional stability,” she said adding that Pakistan’s defense acquisitions should be seen in the regional context where India is now the largest arms buyer in the world.

“We have no intention of doing that but for maintenance of peace and stability in this region, it is important that we maintain some level of symmetry.”

On Saudi Arabia, she said that Pakistan currently offers training to Saudi military in Pakistan and in Saudi Arabia. She added that they were also exploring joint production of some arms with the Arabian Kingdom, but this would not include the JF-17 multi-role aircraft.

JWG with India

About the meeting in Delhi that was held on Tuesday, the spokesperson said that the discussions were constructive.

“The two sides reviewed the CBMs related to trade and travel across LoC,” where the status of the detained driver from the Pakistani was sought. “If he is detained in Indian administered Kashmir then the investigations into the allegation that there were contraband items in the cargo, would be difficult to hold.”

“It may mean that an innocent person is punished and those who are responsible, if indeed it happened, for this heinous crime would go scot free.”

She pointed out that the practice has been, in case of intra-Kashmir trade and travel, all matters that arose used to be resolved at the local level.

“India’s action has raised some questions of jurisdiction and jurisprudence. We have left these points with India and they said they would come back to us on that.”

She rejected reports where it was claimed that the Prime Minister hinted at the involvement of Indian spy service RAW in the F-8 attacks in Islamabad.

Threats in the capital

The spokesperson said that after on Monday, more precautionary measures are being taken across the federal capital. “We have not received information of any specific threat to the diplomatic community neither have we received any special requests from them for enhanced security. We have taken all necessary measures in any case.”

Qatar in trouble with GCC

Asked how Pakistan would balance relations with Qatar and the Gulf countries who had withdrawn their ambassadors from it, the spokesperson said that the matter was their bilateral concern.

“Withdrawal of Ambassadors by three member countries from a fourth member is their bilateral matter. We would not comment on that.

We have good relations with all of them and we would continue to maintain them.”

Son of Consulate staff killed in Bahrain

Commenting about the terror attack in Bahrain in which a Pakistani was killed, the spokesperson said that while they would not comment on it, but confirmed that the Pakistan killed was the son of a Consulate staffer.

Spectrum auction in danger, time to act

The writer is CEO of TechPolis, Inc. and an international consultant on telecom policy. He is currently advising the five mobile operators of Pakistan on policy matters related to spectrum auctions

The spectrum auction for the introduction of mobile broadband in Pakistan is in danger. As a central piece of Finance Minister Ishaq Dar’s budget strategy for FY2013-14 and the first test of foreign investors’ appetite to invest in Pakistan under the administration of Prime Minister Nawaz Sharif, this should be worrisome. The good news though is that the central issues that are concerning existing mobile operators and potential new investors can be resolved before the auction takes place.

Pakistan has just one per cent broadband penetration. This dismal number lets down a population that will be approaching 200 million inhabitants soon. In the 21^st century, broadband is as important as water and electricity for the well-being of citizens and for dynamic development. While water and electricity require strong government intervention, broadband deployment is driven worldwide by private investment and light regulation that provides guidance on the general policy objectives without micromanaging outcomes.

The information memorandum (IM) and the draft licence offered by the Pakistan Telecom Authority (PTA) under close watch of the Ministry of Information and Telecommunications goes in the wrong direction of strong government intervention in the telecom industry. This is a big disappointment for the telecom sector and should be fixed. Otherwise, spectrum auctions that are important for the sector and the whole economy, could fail.

Let’s start with technology neutrality.  This means that telecom operators can use the spectrum they acquire from the government in auctions to deploy any technology they find suitable for delivering services to consumers. This has been a corollary of Pakistan’s telecom policy since the 2004 Mobile Policy that is still in effect. The current IM for the auctions and the draft licence both, break with this principle and restrict the use of new spectrum “only for the Next Generation Mobile Services for which it is permitted”. This would tie the hands of operators unnecessarily and break with a key principal of the telecom policy: governments should not impose technology; the private sector chooses technology.

As with many such big mistakes, the break from technology neutrality comes with good intentions.  Pakistan waited too long to deploy third-generation wireless networks — 3G or HSPA — for its mainstream voice and data technology. 4G or Long-Term Evolution came after that. The government’s intention is to accelerate the roll-out of new networks. But tying the hands of operators is not the best way to achieve this objective. Leaving operators free to efficiently deploy technologies based on each operator’s unique strategy is better and would keep a key principle of policy enshrined in the existing policies and best practices.

Another fundamental issue is the auction design itself. It is designed to create an artificial spectrum scarcity. The country has five operators but only three slots of spectrum in the 2.1GHz band (a key slice of spectrum for 3G) is being offered. This could create fierce competition and hike up prices in this band, but it could also lead operators not to engage in the auctions. The government is also offering two slots of 1,800MHz (useful for both 2G and 4G) and one in 850MHz (good for both 3G and 4G). However, it is not allowing all operators to bid for it — only winners of the 2.1GHz or a potential new entrant could bid. A better auction design would allow all operators, existing and new, to bid for all bands simultaneously. Which new entrant would want to enter a cutthroat auction for 2.1GHz? The current auction design is self-defeating in attracting a new entrant and can alienate the handful of existing operators; if the auction design is improved, the government will fetch better financial results with the auctions than under the current design.

To give operators flexibility to deploy 3G and 4G, spectrum associated with both should have flexible rollout obligations. Operators most likely will deploy 3G first to develop a mass data market for the common person, which currently does not exist in Pakistan. 3G devices are cheaper and more suitable for the mass market. Then, they will start deploying pockets of 4G and will expand. The current obligations for a rollout of 3G (2.1GHz) and 4G (1,800MHz) are too ambitious and discourage bidders. More time (a factor of two times more for 2.1GHz and a factor of five for 1,800MHz) would allow operators to bid for both spectrum bands confidently. The current obligations will cause no bidders for 1,800MHz, destroying value for the auctions.

There are additional financial burdens in the draft licence that also act to discourage bidders. Future revenues resulting from services provided with this spectrum will be in rupees but the cost of the spectrum is in US dollars. A mismatch between this big expense (spectrum cost in USD) and revenues (in rupees) is not financially sound. Pakistan needs to go beyond the practice of charging for spectrum in USD. Moreover, if bidders decide to parcel 50 per cent of the payment in installments, libor plus three per cent is due. In USD, the financial hedge is there, no interest should be added to it; in rupees, the interest would make sense due to inflation. A number of unnecessary guarantees for payment of regulatory fees also add to the costs of the auction and should be eliminated, as other punishments for non-payment of fees are already in place, including cancelation of licence.

The biggest flaw is perhaps, in the proposed scheme for the auction. The proposed draft licence is unacceptable to existing operators, which already have an operating licence. The new draft licence contradicts the existing one in several aspects, forcing operators to create ‘two accounting operations’ — one to serve the existing licence and one to serve the new one. It is time to separate the operating licence from spectrum assignment in order to resolve this problem. This is a big job for the PTA but it can be and should be done now while there are in-house consultants supporting the auction. For starters, issuing a simple spectrum assignment with terms of payment, duration and obligations could address these concerns, while the PTA would move to a definitive separation between operating licences and spectrum assignments in the next few months.

Finally, an important element in the environment for the auctions is taxation. In defining how much they are willing to pay for spectrum, operators run an Excel spreadsheet with the potential returns over the period of the licence (currently 15 years, better if 20 years). Taxation is a major factor affecting returns.  The finance ministry would go a long way in enhancing the likelihood of auction success if it eliminates the activation tax of Rs250 and brings the GST to the 17 per cent that is normal for most sectors (telecom currently is paying 19.5 per cent). This should be done ahead of the auction to create certainty, instead of only promises that can be withdrawn once the auction is done.

The finance minister, IT Minister Anusha Rehman and PTA Chairman Dr Ismail Shah form a dream team that any government would like to have running the affairs under their responsibilities. It is now in their hands to ensure that spectrum auctions will be successful. Much work is still to be done, but it must be done for the sake of the common person in Pakistan.