Pakistan’s planned rollout of 5G services by April 2025 could face further delays due to unresolved regulatory and spectrum issues. Central to this challenge is the pending decision by the Competition Commission of Pakistan (CCP) on the proposed acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL). The delay in resolving these matters has raised concerns among industry stakeholders and slowed progress on the government’s ambitious 5G timeline.
According to a report by a national daily, the merger’s unresolved status and ongoing litigation over critical spectrum allocation are creating significant roadblocks. Consultancy firm National Economic Research Associates Inc. (NERA), contracted by Pakistan Telecommunication Authority (PTA) in November 2024 to provide recommendations for the release of the International Mobile Telecommunications (IMT) spectrum, has flagged these issues as critical.
One of the primary obstacles is the uncertainty surrounding the number of Cellular Mobile Operators (CMOs) in the market, which hinges on the outcome of the PTCL-Telenor merger. NERA has urged authorities to finalize the structure of the telecom sector, including decisions related to the merger, to enable progress on 5G implementation.
Additionally, spectrum availability remains a pressing concern. Out of the 140 MHz available in the 2.6 GHz band, which is essential for both 4G and 5G services, only 54 MHz is currently free for use. The remaining spectrum is under litigation, and the limited bandwidth is insufficient to support even a single operator effectively.
The delay in resolving these issues has also impacted NERA’s ability to deliver its consultancy report, which is vital for guiding the PTA’s next steps. The consultancy’s recommendations are expected to shape the auction process and subsequent 5G rollout, but this progress is contingent on regulatory clarity.
Once the CCP makes its decision on the PTCL-Telenor merger, the matter will require further approvals from other regulatory bodies, including the PTA, Securities and Exchange Commission of Pakistan (SECP), and the State Bank of Pakistan (SBP). Following these approvals, additional steps such as cabinet endorsement, the publication of auction guidelines, and operator preparations will add further time to the process.
The government’s 5G ambitions have already faced multiple setbacks. Initially, the first spectrum auctions were planned for March 2023, but delays in decision-making and legal challenges have postponed the timeline repeatedly. The current hurdles suggest that Pakistan’s first 5G rollout could extend well beyond April 2025, raising concerns about the country’s ability to stay competitive in the region’s rapidly advancing telecom sector.
The delay not only impacts the government’s digital transformation goals but also puts at risk the benefits of 5G technology, such as enhanced connectivity, economic growth, and technological innovation. Industry experts are urging swift action to resolve the merger and spectrum issues, emphasizing the importance of regulatory alignment to achieve the 5G vision.
As Pakistan navigates these challenges, the telecom sector remains at a crossroads. The resolution of the PTCL-Telenor merger and spectrum litigation will be pivotal in determining the country’s readiness to embrace the next generation of mobile connectivity.
