The Ministry of Information Technology and Telecommunication has issued policy directive to the Pakistan Telecommunication Authority (PTA) for holding the auction of next-generation mobile (IMT) spectrum with estimated minimum non-tax revenue of $630.4 million.
Under the directive issued by the Ministry of Information Technology & Telecommunication, the Pakistan Telecommunication Authority (PTA) has been tasked to auction spectrum in the 700, 1800, 2100, 2300, 2600 and 3500 MHz bands, marking the most expansive spectrum release to date.
The auction will include 15 MHz paired spectrum in 700 MHz, 3.6 MHz in 1800 MHz, 20 MHz in 2100 MHz, 50 MHz in 2300 MHz, 190 MHz in 2600 MHz, and 280 MHz unpaired spectrum in the 3500 MHz band, widely considered critical for 5G deployment.
The policy sets technology-neutral spectrum use, allowing operators to deploy advanced mobile generations, including 5G, under the existing regulatory framework. Both existing cellular mobile operators (CMOs) and new entrants will be eligible to participate, subject to spectrum caps.
Base prices have been fixed in US dollars, with 700 MHz paired spectrum priced at USD 6.5 million per MHz, 1 MHz paired spectrum in 1800 MHz 14 million dollars, 1MHz paired spectrum in 2100 MHz is 14 million dollars, 1 MHz unpaired spectrum in 2300 MHz is one million dollars, 1 MHz unpaired in 2600MHz is 1.25 million dollars, while 3500 MHz spectrum has been set at USD 0.65 million per MHz. Payments will be made in Pakistani rupees, using the State Bank’s prevailing exchange rate.
Operators can pay the full fee by the first anniversary of getting the license or deferred payment options:
– Pay at least 50% of the fee by the first anniversary.
– Pay the other 50% in five equal yearly installments starting from the second anniversary.
– The unpaid amount will have an extra charge (interest) of KIBOR + 3% each year.
Interest calculation:
– For the first installment, the interest is based on the one‑year KIBOR rate at the license issue date.
– For later installments, the interest uses the KIBOR rate from the previous year’s payment date.
Operators can pay the remaining balance any time within 5 years without penalty, but still pay the interest (KIBOR + 3%) until the final payment.
The license lasts for 15 years for the winning bidder. The license will allow spectrum trading or sharing as per the regulator’s rules.
The license includes plans for a phased next‑gen mobile network with better service quality, as advised by the telecom authority. If an existing telecom operator wins the spectrum, they must follow new obligations and financial rules for their network expansion.
To ease financial pressure on operators, the government has allowed a one-year payment moratorium, after which licensees may opt for upfront or installment-based payment options.
The directive also mandates spectrum rationalization in the 1800 and 2100 MHz bands post-auction to ensure efficient use of contiguous holdings.