5G Launch Could Backfire Without Consumer Readiness, Warns Telecom Chief

As Pakistan moves closer to its long-delayed 5G spectrum auction, the head of the Telecom Operators Association of Pakistan (TOA) has cautioned that rolling out next-generation networks before consumers are equipped to use them could strain scarce foreign exchange reserves and leave advanced networks underutilized.

Pakistan is preparing for its largest mobile spectrum auction ever, offering around 600 MHz of additional spectrum. Although 5G was planned years ago, the rollout has lagged behind neighboring countries due to delays in regulatory and policy frameworks. Once the auction is completed, telecom companies are expected to deploy 5G networks within four to six months, with commercial services likely starting in major cities like Islamabad, Lahore and Karachi by mid- February 2026.

The spectrum auction announcement was made by Pakistan’s Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja in early January 2026 that next month, Pakistan will auction 7 spectrum bands for 5G. Five are new and two have been auctioned before.

Aamir Ibrahim, CEO of Jazz and chairman of TOA, said the focus on auction dates and coverage targets must be balanced with efforts to ensure affordable 5G-capable handsets and real demand among ordinary users. “Technology introduction by itself does not transform societies. Using that technology does,” Ibrahim said in a detailed statement outlining the industry’s concerns.

Industry estimates show that only a small fraction of Pakistan’s mobile users currently own 5G-enabled handsets, and the high cost of such devices remains a major barrier to adoption. Entry-level 5G smartphones in Pakistan often start at around Rs. 90,000, with premium models fetching up to Rs.  700,000, prices far beyond the reach of many consumers on prepaid plans with limited purchasing power.

Ibrahim pointed to domestic manufacturing data showing that between 2019 and late 2025, Pakistan assembled approximately 152 million mobile devices, nearly 60 percent of which were basic 2G feature phones. Even among smartphones produced locally, most are 4G only, with virtually no 5G models built in Pakistan’s factories.

Adding 5G support raises manufacturing costs due to more complex radio components and chips, and retooling assembly lines typically takes several months. In a price-sensitive market, even modest cost increases can push devices beyond the reach of average consumers, Ibrahim noted.

Beyond device pricing, Pakistan lacks a mature consumer financing ecosystem that enables handset purchases on installments tied to service plans. Unlike developed markets where carriers often bundle devices with data plans and financing options, most Pakistani users must pay the full price upfront, a hurdle that constrains uptake of advanced models.

Ibrahim warned that failing to address these demand-side barriers could result in expensive 5G networks with few users. “An expensive and empty 5G network would not be a marginal shortcoming. It would be a national failure,” he said.

He also highlighted a widening “usability gap” in Pakistan’s digital landscape, with millions still offline due to limited digital skills, lack of relevant local content and low trust in digital services. Despite more than a decade since Pakistan’s first 4G auction, around one in four mobile customers does not use mobile broadband.

The CEO OF Jazz urged regulators and policymakers to adopt a more balanced approach to 5G deployment. His recommendations include reducing the high tax burden on smartphones, enabling handset financing, and aligning spectrum policy with consumer realities to create a sustainable path toward mainstream 5G use.

As Pakistan approaches its first 5G spectrum auction, the debate underscores a key question facing the country’s telecom sector: whether next-generation networks should be introduced primarily as a symbolic milestone or as an inclusive platform that benefits a broad base of users.

Only by prioritizing affordability, digital skills and ecosystem readiness, operators argue, can the promise of 5G translate into tangible improvements for ordinary Pakistanis rather than simply adding new layers of cost and complexity to an already strained telecom market.