Islamabad – Pakistan’s telecommunications regulator confirmed Wednesday that a 5G spectrum auction will proceed on March 10, potentially generating between $300 and $700 million for the government, according to officials.
The Pakistan Telecommunication Authority (PTA) will offer 597 megahertz (MHz) of spectrum in multiple bands during the auction, with three existing telecom operators mandated to acquire a minimum of 100 MHz each, PTA Director General Licensing, retired Brigadier Aamir Shahzad, told reporters.
Shahzad explained that even a conservative scenario – the sale of 300 MHz without significant competitive bidding – would yield at least $300 million for the government. A full sale of the available 597 MHz, with moderate competition, could reach $700 million, though he indicated this outcome was less probable.
The auction will employ a multi-round electronic clock auction format, with the primary allocation phase beginning on March 10. The 2600 MHz and 3500 MHz bands will be the initial focus, Shahzad said.
Following the auction, the rollout of 5G services is expected to take three to six months, contingent on the necessary infrastructure development, he added.
PTA Chairman Hafeezur Rehman stated the auction is anticipated to improve service quality and data speeds. “Around 50 million novel users have been added in the system during the last five years, but only 10MHz was increased in the 2021 spectrum auction,” Rehman said.
Rehman also noted that improved data services and expanded coverage are expected to increase the average revenue per user (ARPU) for telecom operators, which has already risen from $0.7 to $1.3. He anticipates further increases as data consumption grows.
The PTA projects mobile broadband speeds will improve by approximately 25 percent after the auction. The authority has offered incentives to telecom companies while simultaneously increasing obligations related to service quality and coverage area, Rehman said. “This will help the country to embrace further upgradations like 6G and not like 5G, where we have been delayed,” he stated.
The government has also eliminated the right-of-way fee, previously around Rs36,000 per kilometer annually, to encourage fiberization projects, according to the PTA Chairman.
Telecom operators have already placed orders for 5G equipment, and local manufacturing of 5G-enabled smartphones has begun, with current production reaching 500,000 to 600,000 units, Rehman confirmed.
To facilitate a faster rollout, the PTA is offering options for spectrum sharing, relaxing certain regulatory terms, and providing incentives for network expansion. Operators will have one year to produce necessary capital investments without upfront spectrum payments, allowing them to prioritize service improvements.
However, operators will be required to expand 5G coverage beyond Islamabad, Karachi, Lahore, Peshawar, and Quetta. Fiber-to-the-site ratios must increase from 20 percent to 35 percent by 2035. Minimum 4G download speeds will rise from 4 Mbps to 20 Mbps by 2026-27 and to 50 Mbps by 2030-35. For 5G, minimum download speeds will initially be 50 Mbps, increasing to 100 Mbps by 2030-35, with latency targets reduced to 35 milliseconds. Upload speeds will be benchmarked at 20 percent of download speeds for both technologies.
