PTA is moving to end what has become a pattern of speculative licensing in Pakistan’s telecom tower sector, proposing mandatory rollout obligations for all Telecommunication Infrastructure Tower Provider licensees that would require companies to build actual infrastructure rather than simply hold licences without deploying anything. The scale of the problem is significant: of the 15 valid Tower Provider licences issued nationally, only nine companies have begun operations, and just six of those have deployed 50 or more towers, meaning that nearly 60 percent of licence holders have made zero or negligible progress on the ground. This inactivity has direct consequences for spectrum efficiency and for the pace at which 4G and 5G coverage can be extended across the country.
Under the proposed framework, developed under the Pakistan Telecommunication Re-Organisation Act 1996, licensees would face annual targets tied to their commencement certificates, requiring them to build either 10 towers or 5 distributed antenna systems per year over a five-year period. The proposal brings Tower Provider licensees in line with Long Distance International, Local Loop, and Telecommunication Infrastructure Provider licence holders, which already carry rollout obligations, extending a principle of accountability that the regulator has applied elsewhere in the sector. Active tower deployment is expected to meaningfully improve network coverage, reduce call drops, and support data speeds across the country.
Industry players acknowledge real economic hurdles. Tower construction demands substantial upfront capital for land acquisition, equipment procurement, and power infrastructure, and Pakistan’s macroeconomic conditions, including currency volatility and elevated financing costs, make compliance a genuine challenge for smaller or underinvested operators. The policy is likely to accelerate consolidation in the tower infrastructure space, with companies unable to meet the targets facing pressure to either partner with active players or exit the market. PTA has given stakeholders until May 4, 2026 to submit written feedback or propose alternative frameworks, after which the obligations are expected to become binding conditions for both current and future Tower Provider licensees.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
