Pakistan’s 5G Auction Stalled by Zong’s Legal Moves, Costing Over $200 Million

Pakistan’s inaugural 5G spectrum auction faces an unprecedented setback as CMPAK (Zong) continues to secure stay orders on key frequency bands, deepening a shortfall that could derail the entire process and cost the national exchequer hundreds of millions of dollars.

According to the Pakistan Telecommunication Authority (PTA), Zong’s appeals have frozen 11.6 MHz of prime 5G-ready spectrum, 6.6 MHz in the 1800 MHz band and 5 MHz in the 2100 MHz band, despite earlier rulings by the Islamabad High Court and directives from the Ministry of IT & Telecom ordering the operator to vacate and settle its dues.

Zong has taken legal action challenging the legality of the PTA’s spectrum re-farming decisions, claiming procedural irregularities and disputing the financial terms imposed, including outstanding dues and late payment penalties.

With Ufone (Pak Telecom Mobile Ltd.) also litigating over 140 MHz in the 2600 MHz band, only 54 MHz of the consultant-recommended 194 MHz remains available for auction, threatening both auction viability and market competitiveness. The ongoing litigation blockade prevents Zong from recovering USD 246 million, including USD 117 million from the 1800 MHz litigation and USD 129 million from the 2100 MHz dispute.

The Supreme Court currently houses two major cases between Zong regarding the 1800 MHz band spectrum and the 2100 MHz spectrum. Officials from PTA demand the Supreme Court schedule the 1800 MHz appeals during the first week of May 2025 while pushing for swift resolution of the 2100 MHz matter. The regulatory authority is working on a spectrum waterfall strategy that allows for the immediate auction of unchallenged spectrum blocks until legal outcomes for disputed frequencies become known.

For consumers and operators alike, the stakes are high: truncated spectrum offerings will likely translate into slower 5G rollouts, higher wholesale prices, and ultimately steeper costs or degraded service quality for end users.

“We need regulatory backstops now,” said a senior industry executive. “Without swift court decisions or interim licensing mechanisms, we risk launching 5G on a crippled playing field.”

As Pakistan races to modernize its telecom infrastructure, Zong’s courtroom tactics have become emblematic of broader challenges in balancing private litigation rights with public interest. Unless these legal impasses are resolved by May, analysts warn that Pakistan may have to postpone or significantly scale back its 5G auction, delaying next-generation connectivity nationwide.