3 min read
Pakistan’s journey toward 5G faces serious roadblocks, as highlighted in a recent Asian Development Bank (ADB) report. Despite global momentum toward 5G, Pakistan’s telecom sector remains stuck. Multiple issues, including the world’s lowest average revenue per user (ARPU), high operational taxes, and low 4G/smartphone adoption, continue to hinder progress.
According to the GSMA, Pakistan offers among the lowest spectrum access globally. While other nations are expanding spectrum for operators, Pakistan lags. Furthermore, the rising cost of energy, repeated power outages, and frequent internet shutdowns make the environment even more challenging. Mobile Network Operators (MNOs) are hesitant to invest without urgent policy changes and a favorable business climate.
According to the Asian Development Bank’s latest report, mobile operators in Pakistan are facing a tough environment. With ARPU among the lowest worldwide, it becomes harder to justify 5G investments. Telecom operators also deal with heavy taxation and low 4G and smartphone adoption. These factors create a major barrier to infrastructure development.
Meanwhile, GSMA data shows that Pakistan’s available spectrum for mobile services is extremely limited. Globally, operators are gaining access to more spectrum, but Pakistan is falling behind.
Since early 2021, three governments have announced spectrum auctions for 5G. However, none of those promises were fulfilled. MNOs fear that new spectrum releases may come with pressure to immediately deploy 5G. Without financial or regulatory support, that task seems unrealistic.
Currently, the government holds over 600 MHz of unused spectrum. This includes bands like 700 MHz to 3500 MHz. In contrast, Pakistan’s operators only have access to 274 MHz, while ITU recommends 840 MHz for mobile broadband.
Unfortunately, the focus seems to be on maximizing spectrum revenue instead of recognizing long-term economic benefits. Another pressing issue is energy cost. Running tower sites is energy-intensive. Rising fuel prices have made operations more expensive.
Frequent power outages disrupt services and reduce customer satisfaction. In January 2023, outages shut down towers nationwide. Some areas faced complete service blackouts.
Adding to the burden, NEPRA does not classify telecom as an industry. This forces MNOs to pay higher commercial electricity rates instead of lower industrial tariffs. Internet shutdowns have also created serious losses. These are often imposed for security purposes, but the economic damage is widespread.
Thousands of professionals, freelancers, students, and small businesses suffer each time the internet is restricted. Online education, navigation, deliveries, and e-commerce are disrupted.
Without immediate reforms and reliable energy, Pakistan’s dream of 5G connectivity will remain delayed. The government must act quickly to restore investor confidence.
