ISLAMABAD (Online) - Government is likely to generate more than $291 million from auction of 800 MHz of Instaphone GSM license in March 2012 previously owned by Instaphone.
Officials privy to the development told Online that Pakistan Telecommunication Authority (PTA) announced to hold the auction  after the re-auction of the license have been approved by Prime Minister Syed Yousaf Raza Gillani while chairing a cabinet meeting a couple of days ago. During the meeting it was decided that that existing operators and new international players would also be invited for this auction of Instaphone license which is the sixth existing licensee in the country but not a new one.
Experts believed that this auction would attract handsome investment in the country.
PTA will notify the Information Memorandum (IM) containing inter ali auction methodology, data and venue later on.
It is too pertinent here that on January 04, 2008 Pakistan Telecommunication Authority (PTA) terminated the license of Instaphone due to company's failure to pay outstanding dues for the license renewal fee they agreed to in April 2005 that is $291 million.  Pakcom, the company that runs Instaphone, failed to meet the payment schedule of $291 million for getting the operating license renewed for next 15 years from 2005.
The Instaphone challenged the PTA's decision before the Islamabad High Court and Supreme Court in appeals. Both the appeal and the writ petition were dismissed by the court and PTA's determination was upheld.  Instaphone was a telecommunications company in Pakistan and the pioneer of cellular industry in Pakistan.
The company was initially owned by Millicom International and was acquired later by the Arfeen Group.