Pakistan is on the verge of finalising its first-ever 5G spectrum auction as the Spectrum Advisory Committee (SAC), headed by Finance Minister Muhammad Aurangzeb, convenes to make critical decisions on the rollout of next-generation mobile technology. The meeting, scheduled for Friday, comes amid ongoing uncertainty regarding the 154 MHz in the 2600 MHz band, considered the most suitable spectrum for launching 5G services, which remains tied up in litigation. The decisions made by SAC are expected to define the roadmap for the auction, which has faced repeated delays due to legal disputes, regulatory hurdles, and the postponed PTCL-Telenor merger.
Representatives from National Economic Research Associates Inc. (NERA), a United States-based international consultancy engaged by the government for spectrum planning, have arrived in Islamabad to present their report to the advisory committee. The report is anticipated to cover market readiness, spectrum valuation, band allocation, pricing strategies, rollout obligations, and policy recommendations, forming the foundation of Pakistan’s 5G framework. Prime Minister Shehbaz Sharif had previously set December 2025 as the target for the auction, but multiple factors, including the legal hold on the 154 MHz prime band, have pushed the expected timeline toward February or March 2026.
The government plans to offer a total of 562 MHz for auction, with 140 MHz still affected by litigation. Officials indicated that Pakistan possesses spectrum in all International Telecommunication Union (ITU) bands earmarked for 5G, including 700, 2100, 2300, 2600, and 3300 MHz, which can be utilised for technology-neutral deployment. This means the same bands can accommodate existing 4G networks while being converted for 5G services, offering a flexible and future-ready framework for operators. Federal IT and Telecom Minister Shaza Fatima Khawaja recently highlighted that Pakistan’s 5G rollout faces significant challenges, including high input costs, the region’s highest spectrum taxation, low Average Revenue Per User (ARPU), and dollar-pegged licensing fees, all of which strain telecom operators.
Industry stakeholders, including local operators and the Global System for Mobile Communications Association (GSMA), have warned that further delays in spectrum release could cost Pakistan between USD 1.8 billion and USD 4.3 billion in economic benefits over the next five years. Operators are advocating for lower-than-previous auction prices, rupee-denominated spectrum fees, interest-free payment plans extending up to 15 years, and duty-free import of 5G equipment and compatible smartphones. GSMA emphasised that Pakistan’s spectrum costs are among the highest globally, consuming roughly 20 percent of telecom revenues, and urged policymakers to adopt an investment-friendly approach rather than prioritising short-term government revenue.
Currently, Pakistan operates on just 274 MHz of spectrum, significantly lower than regional peers and global benchmarks. This scarcity has tangible consequences for mobile users, contributing to network congestion, dropped calls, and slower data speeds. With SAC poised to finalise decisions, the upcoming 5G auction represents a crucial step toward addressing these challenges, enabling operators to deploy next-generation networks, and advancing Pakistan’s broader digital transformation agenda. The outcomes of this meeting are expected to shape the country’s telecom landscape and influence investment, infrastructure, and connectivity for years to come.
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