Pakistan’s Telecom Sector Faces Delays in 5G Auction Due to Spectrum Litigation and Merger Issues

Islamabad: Spectrum litigation cases and delayed PTCL(Ufone)/Telenor merger are currently big challenges for upcoming 5G spectrum auction. This was confirmed by Minister for Information Technology and Telecommunication Shaza Fatima Khawaja in a written response to the National Assembly.

The government through all relevant offices such as AGP, MoL&J, and the Advisory Committee for the auction, is making every effort to ensure the early resolution of pending cases, she added.

Pakistan’s cellular network has grown rapidly, with mobile subscribers reaching 193.4 million, reflecting 8.5 GB monthly data usage per subscriber. Government is planning to introduce policy reforms for telecom sector growth and sustainability, she added.

In written response she said that the Government of Pakistan has initiated the process for release of additional spectrum, with the spectrum auction scheduled to take place in the coming months. In this regard, Frequency Allocation Board (FAB) has made available 567 MHz additional spectrum in 700, 1800, 2100, 2300, 2600 & 3500 MHz bands, which is more than 200% of existing spectrum.

In addition, PTA has hired an internationally reputed consultancy firm (NERA) for assistance in spectrum auction process and to provide recommendations on policy actions and reforms for maintaining competition, maximize commercial utilization of spectrum, increasing broadband proliferation, securing increased ICT infrastructure investment and improved business sustainability.

PTA has hired above mentioned consultancy services with emphasis to develop a strategy for maximizing spectrum release to support Next Generation Mobile Broadband Services in Pakistan. The consultant will also assess spectrum valuation in line with international trends on spectrum pricing to drive economic growth and attract foreign investment.

Additionally, the auction is being designed as an investment-friendly process to enhance ICT infrastructure, accelerate broadband proliferation, and ensure the long-term sustainability of the telecom sector.

In the upcoming spectrum auction, anadequate amount of spectrum has been made available across the 700, 1800, 2100, 2300, 2600, and 3500 MHz bands. This spectrum will be assigned to auction winners on a technology-neutral basis enabling operators to support 4G rollout.

Accordingly, after the action process is completed, PTA will issue licenses, which contains Network Rollout Obligations to provide 4G/5G services. Such rollout obligations are determined based on yearly basis targeting segment of population in each province or on a different criteria based on international practices like starting from major cities, site count etc.

To ensure that spectrum remains accessible and affordable for mobile operators, enabling improved service delivery, several key measures are being taken. The consultant thoroughly conducted stakeholder consultation to assess financial health of the sector. The consultant will propose a pricing strategy to achieve overall economic growth and incentivizing foreign investment while analyzing the impact of past spectrum auctions and renewals, incorporating international best practices, and considering other relevant factors.

By adopting a balanced and strategic approach to spectrum pricing, the auction process aims to enhance mobile broadband coverage, improve data speeds, and support the long-term sustainability of the telecom sector.