PTA has introduced a new regulatory framework that directly links telecom network expansion with financial guarantees, aiming to ensure consistent infrastructure development and improved service quality across Pakistan. Under the new plan, telecom operators are required to submit bank guarantees totaling 15 million dollars, a move designed to strengthen accountability and encourage timely execution of network rollout commitments. The guarantees are structured to align financial responsibility with operational performance, allowing the regulator to recover funds if expansion targets are not met.
As part of the framework, each telecom company must provide four separate bank guarantees, each valued at 3.75 million dollars. Every guarantee corresponds to one phase of the expansion plan, with funds remaining secured until the completion of that phase. Operators that meet their rollout milestones within the specified timelines will receive their guarantees back in full. However, if a company fails to achieve the agreed targets, PTA retains the authority to encash a portion of the guarantee. This phased approach is intended to maintain continuous oversight while giving operators the flexibility to plan investments over an extended period.
A central requirement of the plan focuses on improving nationwide mobile coverage through sustained site deployment. One phase of the program, spread over a nine year period, mandates that telecom operators install at least 1,000 new mobile sites annually. To address coverage gaps, at least 20 percent of these sites must be deployed in previously underserved or weak coverage areas. Operators are permitted to use any frequency band allocated to them for these deployments, although each site will only be counted once toward fulfilling the annual obligation. This condition is aimed at preventing duplication while ensuring meaningful geographic expansion rather than concentration in already well served locations.
In addition to general site deployment, PTA has introduced specific requirements for 4G and 5G expansion to promote balanced service availability. Telecom companies are required to roll out 4G infrastructure in both urban and rural areas across all provinces, discouraging a narrow focus on major cities alone. For 5G services, operators must extend coverage to 15 additional cities, with a minimum of two cities selected from each province. Within those cities, companies are required to upgrade 10 percent of their existing 4G towers to 5G every year, creating a gradual but consistent upgrade path that supports future demand without overwhelming network planning.
The framework also places strong emphasis on backhaul quality and strategic coverage locations. PTA has mandated that 35 percent of all mobile towers be connected through fiber optic links to enhance network reliability, data throughput, and latency performance. Alongside this, operators must prioritize coverage improvements along motorways and at airports, areas considered critical for economic activity, logistics, and mobility. To reinforce compliance, any shortfall in meeting targets during one phase will be carried forward and added to the requirements of the subsequent phase, increasing the pressure on operators to remain aligned with rollout commitments. Through these measures, PTA aims to create a more disciplined expansion environment while supporting long term improvements in mobile service quality nationwide.
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