Pakistan’s long-awaited 5G spectrum auction is facing a significant delay of at least four months, primarily due to ongoing regulatory uncertainty surrounding the proposed merger between Telenor Pakistan and PTCL-owned Ufone. This postponement is generating considerable uncertainty about which telecom operators will be eligible to participate in the auction, raising questions about the country’s digital connectivity roadmap.
Initially, the federal government had set an ambitious timeline for 5G rollout, aiming to complete the policy reforms by March 2025, issue policy directives in April, conduct the auction in May, and begin commercial 5G services by June. However, with mid-May now behind us and no signs of progress from key decision-making bodies, the original timeline appears increasingly unattainable.
Sources within the Ministry of Information Technology reveal that launching 5G services requires a minimum of three months after the government finalizes and issues the policy directives related to the auction. Yet, the advisory committee responsible for steering the auction process has not yet convened, largely due to geopolitical tensions in the region and escalating hostilities between Pakistan and India, which have complicated decision-making.
Meanwhile, the Pakistan Telecommunication Authority (PTA) confirmed that an international consultant tasked with preparing for the 5G auction has completed its comprehensive report. This report includes several scenarios accounting for different numbers of participating operators—either three or four—depending heavily on the fate of the Telenor-PTCL merger. Although the technical groundwork for the auction is ready, the lack of clear policy guidance is stalling the entire process.
The Competition Commission of Pakistan (CCP) is currently reviewing the merger application submitted by PTCL and Telenor on February 29, 2024. The application is still under Phase II scrutiny, and the CCP has yet to reach a decision. PTCL has expressed frustration over the delays, criticizing the CCP for holding back progress. To expedite the process, PTCL has proposed a $1 billion investment and has requested support from the Special Investment Facilitation Council (SIFC).
This regulatory impasse is creating a bottleneck that threatens Pakistan’s digital infrastructure plans. With 5G technology poised to revolutionize telecommunications by delivering faster internet speeds, lower latency, and enabling innovations such as smart cities and IoT applications, the delay in spectrum allocation and service rollout could hinder Pakistan’s competitiveness in the global digital economy.
Industry experts warn that the prolonged uncertainty could also deter potential investors, slow down innovation, and delay the digital transformation efforts already underway in the country. The delay comes at a critical time when global markets are rapidly embracing 5G, and Pakistan risks falling behind regional peers.
In the meantime, telecom companies and consumers alike are awaiting clarity on the auction schedule and the merger outcome. The final decision by the CCP will likely shape the competitive landscape of Pakistan’s telecom sector for years to come.
As the situation evolves, stakeholders remain hopeful that policy direction will soon be provided to unlock the potential of 5G technology in Pakistan, aligning with the broader vision of a digitally empowered nation.