Major telecom operators in Pakistan have raised concerns over the Pakistan Telecommunication Authority’s Information Memorandum for the upcoming 5G spectrum auction, warning that the proposed requirements could make the rollout financially challenging. Sources familiar with the matter confirmed to TechJuice that complying with the IM would require each operator to invest between $150 million and $200 million annually in network infrastructure over the next five years, in addition to spectrum fees. Industry leaders argue that the current financial obligations, combined with operational challenges, make the proposed rollout difficult to justify.
Telecom executives highlighted that meeting the rollout obligations will demand substantial capital expenditures on radio access networks, fiber backhaul, power systems, and site acquisition. A senior official from a leading telecom operator noted that with Pakistan having one of the lowest average revenue per user rates in the region, committing such resources every year would strain finances and make the investment difficult to justify. Operators stressed that the IM in its current form requires adjustments to ensure the 5G rollout is commercially viable and sustainable.
According to industry sources, the IM mandates the construction of 1,000 new cell sites annually, along with upgrading at least 10 percent of existing towers to 5G technology during the initial phase, focusing on Islamabad and the four provincial capitals. The regulator has also increased minimum service benchmarks, requiring 4G speeds to rise from 4 Mbps to 20 Mbps, fixed broadband speeds to increase from 4 Mbps to 10 Mbps, and setting a baseline 5G speed of 50 Mbps. PTA plans to allocate 597.2 MHz of spectrum across six frequency bands, representing one of the largest spectrum allocations in Pakistan’s telecom history.
While the regulator emphasizes that these measures aim to improve service quality, expand coverage, and support the digital economy, telecom operators argue that the financial pressures faced by the sector have been underestimated. Rising energy costs, high taxes, low tariffs, and currency depreciation are cited as significant factors that could hinder operators’ ability to meet the rollout requirements. Industry insiders are urging PTA and government officials to consider realistic adjustments to the IM to ensure that the auction and subsequent deployment of 5G infrastructure remain commercially feasible and sustainable.
The feedback submitted by operators will play a critical role in shaping the final version of the Information Memorandum, which is expected to outline spectrum allocation, rollout obligations, and technical requirements. Analysts note that while Pakistan’s 5G ambitions are significant for enhancing mobile broadband and supporting advanced applications, a careful balance between regulatory expectations and financial viability will be crucial to attracting investment from domestic and international telecom players.
As the market prepares for the next phase of digital connectivity, stakeholders emphasize the need for a collaborative approach that enables the rapid rollout of 5G services while maintaining economic sustainability for operators. The finalization of the IM will determine the pace at which Pakistan can expand high-speed mobile broadband and integrate next-generation telecommunications into its digital economy.
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