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ISLAMABAD: The 5G auction is set to proceed, as hinted by the Ministry of Information Technology and Telecommunication (MoITT), despite ongoing legal hurdles surrounding parts of the spectrum.
The Pakistan Telecommunication Authority (PTA) and the Frequency Allocation Board (FAB) have expressed concerns, advocating for a “clean spectrum” before initiating the auction process.
Legal Obstacles Impeding 5G Auction Progress
During a recent meeting of the subcommittee of the National Assembly Standing Committee on Information Technology and Telecommunication, chaired by Barrister Gohar Ali Khan, it was revealed that out of the 196 MHz spectrum allocated for future auctions, 146 MHz is currently under litigation. These legal disputes have been pending for years, creating significant obstacles to the auction’s progression and affecting investor confidence.
Federal IT Minister Shaza Fatima highlighted that only 50 MHz of spectrum is presently available for allocation, while two critical court cases continue to block the release of the remaining spectrum. She emphasized the financial implications, stating that billions of rupees are tied up due to these delays.
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The committee noted that the auction process should not prioritize revenue generation alone. Committee Chairman Aminul Haq stressed the need for a balanced approach that considers both financial and technical aspects during planning. A special subcommittee has been formed to review the legal blockages and expedite coordination with the judiciary for quick resolutions.
Background and Future Outlook of the Auction Process
Pakistan’s 5G rollout, initiated with trials in 2017, has been hindered by legal disputes, particularly involving Zong. According to the PTA, Zong’s appeals have frozen 11.6 MHz of spectrum—6.6 MHz in the 1800 MHz band and 5 MHz in the 2100 MHz band—despite court rulings and government orders to vacate and settle its dues.
Additionally, Nayatel is litigating over 140 MHz in the 2600 MHz band. As a result, only 54 MHz of the recommended 194 MHz is available for auction. These delays have blocked the recovery of $246 million in dues—$117 million tied to the 1800 MHz dispute and $129 million from the 2100 MHz case.
Earlier, in the Caretaker government, a high-level meeting between Caretaker IT Minister Dr. Umar Saif and PTA Chairman Maj General (Retd) Hafeez ur Rehman, it was decided that the auction would be conducted within ten months. The IT minister emphasized removing all roadblocks, including spectrum availability, taxation, and teledensity issues, to ensure a smooth rollout.
He also stressed the urgent need to improve 4G infrastructure and expedite 5G deployment to enhance Pakistan’s global telecom ranking, which currently stands at 79 out of 100 in the Inclusive Internet Index due to limited spectrum and poor service quality.
Despite all these efforts, the 5G auction process has stalled since then. The government has set June 2025 as the target date for the 5G spectrum auction, with a commercial launch anticipated in early 2026. However, the success of this timeline is contingent upon resolving the existing legal and regulatory hurdles.
