Slow internet is not just about broken cables. It is ultimately about spectrum. Currently, Pakistan is preparing for its 5G auction… the largest spectrum auction. The decisions policymakers make today will dictate how fast, reliable, and widespread the internet becomes. This isn’t just about faster download speeds. This critical decision will shape network quality, digital services, and telecom investment for the next 10 to 15 years.
The Real-World Economic Impact
Stronger networks enable massive real-world upgrades. They power remote healthcare, telemedicine, smart factories, logistics, and connected transport. Furthermore, modern networks empower emergency services, disaster response, and secure communications through real-time infrastructure monitoring.
Consequently, the economic cost of delay is severe. Global studies show that delays in spectrum availability can cost economies between $1.8 billion and $4.3 billion over five years. This translates directly to lost productivity, slower digital growth, and weaker regional competitiveness. Therefore, we must view spectrum like electricity, gas, and roads. It is core economic infrastructure. Simply put, spectrum policy is economic policy.
Pakistan 5G Auction: The Harsh Reality
On paper, the 2026 auction looks great. Experts view it as progressive, necessary, and a vital chance to catch up regionally. However, true success depends entirely on how realistic the terms are.
Even if spectrum prices drop in some bands, the overall burden remains incredibly heavy. First, prices are still linked to the USD. Second, rollout obligations are very aggressive. Third, strict quality benchmarks apply nationwide, rather than just in big cities.
As a result, operators estimate they must invest roughly $150 million per year each just to meet these rollout requirements. Crucially, that figure does not even include the cost of paying for the spectrum itself. Operators face this massive financial hurdle in a harsh market. They already struggle with low average revenue per user (ARPU), high taxes, rising energy costs, and relentless currency volatility.
The 5G Device Dilemma
Finally, the industry faces a massive device problem. Even if operators successfully roll out 5G networks, adoption will severely lag if phones remain unaffordable. Currently, entry-level smartphones cost 30% to 40% of an average monthly income.
The current device reality paints a difficult picture. Pakistan has 197 million total mobile subscribers. While smartphone penetration sits at 61%, less than 2% of those devices are actually 5G-capable.
Therefore, for 5G to truly deliver a national impact, multiple factors must move together in sync. We need a rapid spectrum rollout, affordable devices, and strong incentives for local assembly. Ultimately, the challenge for policymakers is clear. They must balance ambition with realism. Only then can Pakistan avoid repeating past mistakes and truly strengthen the country’s digital future.
