Pakistan successfully concluded its long-awaited IMT spectrum auction on March 10, 2026, selling 480 MHz of spectrum across the 700, 2300, 2600, and 3500 MHz bands and generating $507 million in revenue for the government. The auction, conducted live by the Pakistan Telecommunication Authority (PTA) over three rounds, saw all three major telecom operators secure significant holdings to support both enhanced 4G networks and the rollout of 5G services.
Jazz emerged as the largest buyer, acquiring 190 MHz for $239 million across all four bands, including 20 MHz in the coveted 700 MHz range suited for wide-area rural coverage. Ufone secured 180 MHz with a particularly aggressive position in the 3500 MHz band, taking 120 MHz that suggests the merged Ufone-Telenor entity may pursue Fixed Wireless Access alongside mobile 5G. Zong acquired 110 MHz concentrated in the mid-band 2600 and 3500 MHz ranges.
The results represent a transformative expansion of Pakistan’s digital capacity. Prior to the auction, the country operated on roughly 274 MHz of total assigned IMT spectrum, one of the lowest figures in the region.
The addition of 480 MHz brings that total to approximately 754 MHz, a nearly threefold increase that now places Pakistan closer to regional peers such as India at around 710 MHz and South Africa at roughly 810 MHz. Authorities sold all spectrum offered in the 2300 and 2600 MHz bands, and all three operators secured positions in the 3500 MHz band, signaling their serious intent to launch 5G commercially.
As per the data obtained from Data Darbar:
IT Minister Shaza Fatima Khawaja described the auction as a historic milestone, noting that Pakistan had reached a “choking point” in spectrum availability that had degraded internet quality for millions of users. She said consumers could expect noticeable improvements in 4G service within four to five months, with 5G expected to launch in Islamabad and provincial capitals within five to six months.
Finance Minister Muhammad Aurangzeb, who chaired the Spectrum Advisory Committee that developed the auction framework, said the expanded connectivity would support emerging technologies including artificial intelligence, blockchain and digital payments.
Authorities designed and implemented the auction with support from NERA Economic Consulting as the independent international consultant, and they broadcast the entire process live on electronic and digital media to ensure transparency. The government also abolished Right of Way charges for fiber deployment, reducing them from Rs 36,000 per kilometer to zero, in a bid to accelerate infrastructure buildout.
Despite the strong outcome, Pakistan still lags well behind advanced digital economies.
The 5G picture, however, is clouded by structural constraints. Less than 2% of Pakistani mobile users currently own 5G-capable handsets, which cost between Rs 40,000 and Rs 100,000, putting them well out of reach for most consumers. Only 15% of the country’s cell towers are connected to fiber optic backhaul, and without fiber, towers simply cannot deliver the speeds that 5G promises regardless of how much spectrum they hold.
Operators face aggressive deployment obligations requiring 1,000 sites per year, including 200 new greenfield builds annually, with fiber-to-the-site ratios that must escalate from 20 to 35 percent over the license period. An operator that spent $250 million at auction could face total commitments of $400 to $600 million when infrastructure costs are factored in.
Pakistan’s mobile ARPU of approximately $1.10 per month, far below the global average of $8.20, makes the payback period deeply uncertain. A quarter of mobile customers still do not use mobile broadband at all despite 4G being available for over a decade, raising the question of whether the country’s connectivity bottleneck is primarily a spectrum problem or a deeper issue of affordability and digital literacy.
There are reasons for cautious optimism, however. Analysis shows that speed-based tariff structures, where operators charge premiums for higher speeds rather than data volume, have correlated with faster ARPU growth in multiple markets. Pakistan’s operators could offer basic 4G at existing rates while introducing premium 5G tiers in urban centres where purchasing power and willingness to pay are higher.
The government’s abolition of Right of Way charges for fibre deployment, reduced from Rs 36,000 per kilometre to zero, removes a significant barrier to the backhaul buildout that 5G requires. And the industry’s shift toward tower-sharing models, exemplified by Jazz’s sale of its 10,500-tower subsidiary to Engro Connect for $560 million in 2025, could convert prohibitive construction costs into manageable rental payments.
Japan, Saudi Arabia and China have between 1,000 and 1,400 MHz of assigned IMT spectrum, indicating that further spectrum releases will be necessary in coming years to keep pace with global benchmarks. Authorities have scheduled the assignment stage, during which operators will receive their specific frequency positions within each band, for March 12.
