Aamir Ibrahim, CEO of Jazz and Chairman of the Telecom Operators Association of Pakistan (TOA), has called for immediate reforms to address the telecom sector’s mounting challenges ahead of the country’s planned 5G rollout by April 2025. The call for action comes at a crucial juncture as Pakistan stands on the brink of adopting next-generation connectivity, a shift that promises to accelerate the nation’s digital transformation and boost economic growth. Aamir’s statements, made during his address at the National Broadband Network Forum in Islamabad, underscored the urgency of overcoming these challenges to ensure a successful 5G deployment that can unlock the full potential of emerging technologies and drive innovation across various industries.
In his speech, Aamir emphasized the transformative potential of 5G, pointing out its capacity to revolutionize sectors such as e-commerce, healthtech, and agritech. While the current 4G infrastructure supports applications like streaming and online shopping, 5G’s high speeds and low latency are essential for advanced technologies such as immersive gaming, health wearables, and the Internet of Things (IoT). He highlighted that these emerging applications rely on seamless connectivity to fully realize their benefits, and without 5G, Pakistan risks falling behind in the global race for technological advancement. The deployment of 5G is expected to fuel innovation, enhance productivity, and bring significant improvements to quality of life and business operations.
Aamir stressed the telecom sector’s pivotal role in Pakistan’s digital economy, citing platforms like JazzCash that have revolutionized fintech. However, he highlighted that significant challenges, such as the affordability of 5G-capable phones and the limited availability of 5G-enabled devices, continue to hinder growth and innovation in the telecom sector.
“While over 50% of Pakistanis own smartphones, only 1% are 5G-enabled, with affordable models starting at approximately PKR 60,000. This is a significant barrier in a country where more than 50% of the population still uses 2G phones,” he said.
Spectrum scarcity adds another layer of complexity to the issue. Pakistan currently has just 1.1 MHz of spectrum per million people, making it one of the most spectrum-starved nations in the world. Aamir called for a revision in spectrum pricing policies, suggesting that prices should be indexed to the Pakistani Rupee rather than the US Dollar. Such a change would make it more financially feasible for telecom operators to invest in spectrum and infrastructure, facilitating a smoother 5G rollout. These reforms, he argued, are necessary to reduce costs and stimulate growth in the sector.
To ensure the successful deployment of 5G, Aamir proposed a series of critical reforms. He stressed the need to raise the Average Revenue Per User (ARPU) through market-driven pricing adjustments and the rationalization of data costs. He also advocated for a 20-year licensing framework, including a five-year moratorium on payments and interest-free options, to ease financial pressures on telecom companies. Additionally, he called for tax incentives on 5G equipment imports and financing reforms to make smartphones more affordable. By classifying telecom infrastructure as critical, Aamir argued, operators could benefit from industrial power tariffs, helping reduce operational costs further.
Aamir also highlighted the importance of improving the spectrum auction process. Learning from past auctions, where limited competition hindered outcomes, he recommended designing future auctions to attract more substantial bids and investments. A more competitive and transparent process, he noted, is crucial for ensuring that spectrum allocation supports long-term growth and innovation in the telecom industry.
