Pakistan’s upcoming spectrum auction is being positioned by government officials and industry observers as a major step toward improving mobile network quality, with authorities downplaying concerns over low 5G handset penetration as efforts intensify to reduce device taxes and encourage local manufacturing of 5G ready phones. Officials and analysts, speaking to Business Recorder, said the planned auction is expected to play a key role in easing long standing network congestion issues and improving overall quality of service for mobile users across the country. The initiative comes at a time when mobile data consumption continues to grow steadily, putting pressure on existing infrastructure.
According to officials, the forthcoming auction will follow a technology neutral approach, allowing telecom operators to deploy newly acquired spectrum across multiple generations, including 2G, 3G, 4G, 5G and even future technologies such as 6G. This flexibility is seen as critical in enabling operators to respond to current market realities while also preparing for future demand. Industry experts noted that Pakistan currently operates with around 274 MHz of spectrum, one of the lowest allocations in the region. In contrast, the government is expected to offer approximately 600 MHz of spectrum in the upcoming auction, a move that could more than double the available airwaves for mobile services. Analysts say this additional spectrum would allow operators to immediately strengthen existing networks, particularly 4G and 3G services, which continue to serve the majority of mobile users.
The auction is widely viewed within the telecom industry as an important measure to address persistent network congestion, especially in high density urban centers where limited spectrum has contributed to declining service quality. Experts believe that additional spectrum will help reduce congestion, improve call clarity and enhance mobile data speeds without waiting for mass adoption of 5G services. Concerns regarding low penetration of 5G capable smartphones are not expected to delay or impact the auction process. Officials disclosed that a committee led by Secretary Finance and Chairman FBR is working on rationalizing taxes on mobile handsets ahead of the federal budget for 2026 to 27, with the aim of making smartphones more affordable for consumers. At the same time, PTA is engaged with local mobile manufacturers to initiate production of 5G enabled handsets within the country, supporting both affordability and local industry development.
Government officials indicated that once spectrum is assigned, initial 5G rollout in major cities is expected to take around six months. By that time, the number of 5G compatible devices in the market is expected to increase significantly due to tax adjustments and local manufacturing efforts. Analysts also pointed to Sri Lanka’s recent spectrum auction, which moved forward despite 5G smartphone penetration being close to one percent, as an example of adopting a forward focused spectrum policy that prioritizes infrastructure readiness over immediate device availability. The technology neutral framework will also allow operators to utilize new spectrum to enhance existing services immediately, ensuring broader benefits for users even before large scale 5G adoption. Improved spectrum availability is seen as supporting wider digital objectives, including connectivity expansion, economic activity and service reliability. Further announcements related to pricing, auction timelines and specific spectrum bands are expected from the government in the coming weeks as preparations move ahead.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
