PTBP Web Desk
Pakistan is finally gearing up for a decisive moment in its long-delayed move toward next-generation mobile connectivity, as the Spectrum Advisory Committee (SAC)—headed by Finance Minister Muhammad Aurangzeb—is set to meet on Friday, November 14, to finalize key decisions for the country’s first-ever 5G spectrum auction. Despite the anticipation, significant uncertainty continues to surround the process, primarily because 154 MHz of prime spectrum in the 2600 MHz band, considered the most suitable for launching 5G services, remains stuck in litigation.
Official sources confirmed that representatives from National Economic Research Associates Inc. (NERA), a renowned U.S.-based international consultancy firm appointed by the government to guide the auction process, have already reached Islamabad. NERA is scheduled to present its detailed report, including market analysis, pricing recommendations, and rollout strategies, before the Advisory Committee during Friday’s meeting.
Prime Minister Shehbaz Sharif had earlier set December 2025 as the deadline for holding the 5G spectrum auction. However, the process has been repeatedly delayed due to a combination of legal, commercial, and structural challenges. The PTCL–Telenor merger, still pending completion, and ongoing litigation regarding the highly critical 154 MHz in the 2600 band have become major roadblocks, pushing the auction timeline further into uncertainty.
Although the government initially intended to offer 562 MHz of spectrum for bidding, nearly 140 MHz of this allocation cannot be auctioned because of unresolved legal disputes. According to officials, Pakistan technically holds sufficient spectrum across all ITU-recommended 5G bands—including 700 MHz, 2100 MHz, 2300 MHz, 2600 MHz, and 3300 MHz—and these can be offered under technology-neutral terms, meaning operators may use them for enhanced 4G or for 5G deployment depending on market conditions.
According to insider reports shared with Business Recorder, the upcoming meeting is expected to define Pakistan’s official roadmap for the next-generation mobile technology auction. While the government had initially targeted 2025, the new expected timeline for the Pakistan 5G spectrum auction is February or March 2026, following repeated setbacks triggered by legal disputes, delays in mergers, and regulatory challenges.
NERA, the international consultant, is expected to brief the committee on several critical areas:
- Market readiness
- Spectrum valuation and pricing models
- Band allocation strategy
- Rollout obligations for operators
- Policy recommendations for 5G services
These components will shape the core framework for Pakistan’s eventual transition to 5G and set the stage for digital transformation, economic modernization, and improved connectivity nationwide.
Federal IT and Telecom Minister Shaza Fatima Khawaja recently issued a strong warning, cautioning that the much-awaited 5G rollout in Pakistan faces serious risks. She stated that the telecom industry is already struggling under severe financial pressure due to:
- Dollar-indexed license fees
- The region’s highest taxation on telecom services
- Soaring cost of equipment and imports
- Historically low Average Revenue Per User (ARPU)
Adding to the challenges, the ongoing litigation involving the 2600 MHz band could further delay or even derail the spectrum auction. This legal deadlock concerns spectrum considered essential for delivering the speeds and capacity required for true 5G performance.
Leading telecom operators, along with the GSMA (Global System for Mobile Communications Association), have cautioned that delays in spectrum allocation may cost Pakistan between USD 1.8 billion and USD 4.3 billion in economic benefits over the next five years. These losses would stem from delayed investments, reduced innovation opportunities, and slower digital adoption across industries.
Operators have proposed several measures to ensure a sustainable rollout:
- Lower spectrum base prices compared to previous auctions
- Spectrum fees priced in Pakistani rupees, not USD
- 15-year interest-free payment terms
- Duty-free imports for 5G equipment and smartphones
However, Pakistan’s commitments under the International Monetary Fund (IMF) program limit the government’s ability to offer incentives or financial relaxations.
The GSMA has repeatedly highlighted that Pakistan already has one of the highest spectrum costs in the world, consuming nearly 20% of telecom operators’ revenues. The association insists that the government should prioritize long-term digital investment and infrastructure development instead of short-term revenue extraction.
Pakistan currently operates on just 274 MHz of total spectrum, which is less than half of what regional countries such as India, Bangladesh, and Malaysia have allocated for public mobile networks. This shortage has real-world impacts: it is one of the primary reasons behind frequent network congestion, dropped calls, slow download speeds, and unstable 4G performance for millions of users.
For Pakistan to compete globally and support next-wave digital services—including IoT, AI-driven systems, and smart city development—the country must drastically expand its available spectrum and ensure efficient allocation.
