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PTA Delays 5G Auction in Pakistan Due to Legal Issues and Poor Market Outlook

  • May 6, 2025
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The launch of 5G services in Pakistan has suffered yet another setback, as the Pakistan Telecommunication Authority (PTA) confirmed a delay in the auction of 5G spectrum. The announcement was made during a briefing held with the Senate Standing Committee on Cabinet Secretariat, where PTA officials, including the chairman, informed lawmakers that unresolved challenges are currently impeding the spectrum’s release and could affect investor response.

During the session chaired by Senator Rana Mehmood-ul-Hassan, the PTA revealed that it had engaged an American consultancy firm in November 2024 to help design and guide the country’s 5G rollout strategy. The consultant was tasked with conducting an in-depth market and policy analysis to ensure the successful auctioning of spectrum and deployment of services across the country. While the 5G auction was originally planned for April 2025, the process has now been delayed indefinitely due to a combination of legal complications and structural concerns identified by the consultancy.

One of the most pressing issues flagged was a long-standing litigation matter, which remains unresolved and poses a serious obstacle to moving forward. PTA officials admitted that until this legal challenge is addressed, a formal auction process cannot proceed. The regulatory body emphasized that proceeding without resolving the litigation could risk undermining the credibility and effectiveness of the entire 5G spectrum auction.

This latest delay is another blow to Pakistan’s efforts to modernize its digital infrastructure. The government has previously stated that it views 5G technology as crucial for driving economic growth, enabling advanced services, and enhancing the country’s global competitiveness. However, persistent roadblocks in the telecom sector have continually stalled progress.

Industry analysts warn that Pakistan’s telecom sector is already grappling with several longstanding challenges, including high taxation, inadequate quality assurance, and limited infrastructure investment. These issues have eroded investor confidence and contributed to a deteriorating environment for both existing players and potential new entrants in the 5G space.

The delay comes at a critical juncture when countries across the region are accelerating their 5G deployments. While Pakistan lags behind, regional competitors are leveraging next-gen mobile networks to foster innovation in industries such as smart manufacturing, e-health, and autonomous mobility. Without timely intervention, experts caution that Pakistan risks falling further behind in the global digital economy.

Additionally, the PTA’s update highlights concerns over market readiness. The consultants reportedly advised that unless regulatory and structural issues are addressed first, the auction is unlikely to receive favorable market reception. This puts further pressure on policymakers to act quickly and resolve the outstanding legal and technical barriers before attempting to relaunch the auction process.

As of now, the PTA has not provided a revised timeline for when the 5G auction will be rescheduled. However, the regulator has assured stakeholders that it is actively consulting with all relevant authorities to create a roadmap that ensures a successful and transparent rollout. Until then, Pakistan’s transition to 5G remains in limbo, raising serious questions about the country’s ability to keep pace with global telecom advancements.

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