The introduction of 5G technology offers a significant opportunity to transform Pakistan’s digital landscape by providing faster connectivity and new possibilities for innovation. However, the road to implementing 5G has been filled with obstacles that highlight deeper issues within the telecom sector. High costs, delayed timelines, and inadequate infrastructure have raised serious concerns about the country’s ability to take this crucial step forward.
Pakistan’s 5G journey began with ambitious announcements in 2021, promising to bring next-generation connectivity to the country. However, these plans have faced repeated delays due to high spectrum prices, unattractive auction terms, limited fiber optic networks, and low adoption of advanced smartphones. According to the GSMA Mobile Connectivity Index 2023, Pakistan ranks at the bottom in South Asia for spectrum allocation, reflecting a significant barrier to deploying modern telecom technologies.
A major hurdle is the high cost of spectrum, which is pegged to the US dollar. Since the last auction in 2021, the depreciation of the Pakistani rupee has drastically increased costs for telecom operators. The exchange rate has risen from PKR 163 to PKR 278, making spectrum acquisition significantly more expensive. Moreover, rigid auction terms have deterred participation, with past conditions requiring operators to buy less desirable bands to qualify for higher-demand spectrum. Some spectrum has also been left unsold due to unrealistic conditions, such as reserving it for new entrants who never entered the market.
Pakistan’s telecom infrastructure also lags behind global standards. Only 15% of mobile towers are connected to fiber optic backhaul, which is essential for reliable high-speed networks. The majority still rely on microwave systems, which are inadequate for 5G. Expanding fiber optic networks is a critical requirement to enable the deployment of next-generation connectivity.
Another pressing issue is the low availability of 5G-compatible smartphones. While 62% of Pakistan’s population owns a smartphone, only a small fraction are equipped to handle 5G technology. High device costs, driven by inflation and import taxes, have made it difficult for most people to afford these phones, limiting the potential user base for 5G.
Telecom operators have highlighted these challenges, warning that high spectrum costs and unfavorable terms discourage competition and innovation. This, in turn, results in higher costs for consumers and limited access to better services. The National Economic Research Associates Inc. (NERA), an international consultancy, has emphasized the need for affordable spectrum pricing to encourage investment and ensure long-term benefits for both the industry and consumers. It also recommended switching to rupee-based pricing to reduce the impact of currency fluctuations and introducing flexible payment terms to ease financial strain on operators.
Efforts to address these issues have been minimal. While the government recently approved a framework for telecom infrastructure sharing, its implementation remains slow. Broadband coverage continues to vary significantly between urban and rural areas, and existing 4G networks are stretched thin, causing poor service quality and further underscoring the urgent need for reform.
Pakistan’s internet services have also been disrupted by other challenges, such as ongoing firewall installations and restrictions on VPN usage, which have limited internet access across the country. These issues highlight the broader weaknesses in the digital ecosystem and the need for coordinated action to improve connectivity and accessibility.
At present, Pakistan is not ready for 5G. The country must address key structural problems, including reducing spectrum prices, expanding fiber optic infrastructure, encouraging the adoption of advanced smartphones, and resolving policy uncertainties that deter investment. Without these measures, Pakistan risks falling further behind in the global race for digital advancement.
For 5G to succeed, the government and telecom operators must work together to overcome these barriers. By addressing these challenges with practical solutions, Pakistan can lay the groundwork for a more connected and innovative future.
