3 min read
All the major Telecom operators in Pakistan have expressed serious concerns over the Pakistan Telecommunication Authority’s (PTA) Information Memorandum (IM) for the upcoming 5G spectrum auction, warning that the current requirements could make the rollout financially unviable.
Sources privy to the information confirmed to Techjuice that complying with the IM would require each operator to invest around $150–200 million annually in network infrastructure over the next five years, in addition to spectrum costs. Senior officials from a major telecom operator claimed that this is a financially challenging scenario, saying the current requirements “do not make any business sense for operators” and will need to be tweaked to make the rollout commercially viable.
Financial and Operational Concerns
Industry leaders highlighted that meeting the rollout obligations will require massive capital expenditure on radio access networks, fiber backhaul, power systems, and site acquisition. “With one of the lowest ARPUs in the region, operators simply cannot justify investing $150 million every year in infrastructure on top of spectrum fees,” said a senior telecom executive.
5G Rollout Requirements & Costs
| Category | Requirement / Detail | Notes / Costs |
|---|---|---|
| New Cell Sites | 1,000 sites per year | Phased rollout across Islamabad & 4 provincial capitals |
| Tower Migration | 10% of existing towers upgraded to 5G | Initial phase requirement |
| Annual Infrastructure Investment | $150–200 million per operator | Excludes spectrum fees; includes RAN, fiber, power, site acquisition |
| 4G Minimum Speed | 20 Mbps | Increased from 4 Mbps |
| Fixed Broadband Minimum Speed | 10 Mbps | Increased from 4 Mbps |
| 5G Minimum Speed | 50 Mbps | Baseline requirement for new 5G services |
| Spectrum Offered | 597.2 MHz across 6 frequency bands | One of Pakistan’s largest spectrum allocations |
The IM also mandates that operators migrate at least 10% of existing towers to 5G technology during the initial phase, starting with Islamabad and the four provincial capitals. Additionally, the regulator has raised minimum quality-of-service benchmarks:
- 4G minimum speeds from 4 Mbps to 20 Mbps
- Fixed broadband minimum speeds from 4 Mbps to 10 Mbps
- 5G minimum speeds set at 50 Mbps
PTA says these measures aim to ensure better service quality, wider coverage, and stronger support for Pakistan’s digital economy, while promoting innovation and advanced applications.
Demand for Realistic Adjustments
Despite the regulator’s intent, telecom executives argue that the IM overlooks financial pressures such as low tariffs, high taxes, rising energy costs, and currency depreciation. Industry insiders are urging PTA and the government to tweak the IM to make the 5G auction commercially feasible.
PTA plans to offer 597.2 MHz of spectrum across six frequency bands, one of the largest allocations in Pakistan’s telecom history. The authority has asked operators to submit feedback before issuing the final version of the Information Memorandum.
