Pakistan’s telecom operators, along with the Global System for Mobile Communications Association, have submitted a detailed set of demands to the government ahead of the anticipated 5G spectrum auction. The industry has requested a reduced reserve price compared with previous auctions, rupee-denominated pricing, interest-free installment plans spread over 15 years, and duty-free imports of both 5G equipment and smartphones to ease the cost burden of deployment. The Spectrum Advisory Committee, led by Federal Minister for Finance and Revenue Muhammad Aurangzeb, heard these proposals but did not offer any immediate assurances, leaving operators uncertain about the upcoming auction framework.
During the meeting, GSMA and the Telecom Operators Association of Pakistan underlined the potential economic impact of delays, warning that postponing the spectrum release could cost the country between $1.8 billion and $4.3 billion in lost benefits over the next five years. They emphasised that unresolved merger decisions, the absence of a clear spectrum roadmap, and ongoing legal disputes—particularly the claim over the 2600 MHz band by Sun TV—are creating obstacles for network investment and the rollout of 5G services.
Operators called for spectrum fees to be rupee-based to help manage currency fluctuation risks and for payment terms to be extended across the full 20-year license period. They asked for a five-year moratorium on initial payments, followed by 15 years of interest-free installments to make the rollout financially feasible. Additionally, they pressed for duty-free imports of equipment and smartphones to encourage early adoption of 5G services among consumers and to lower the capital expenditure required for building networks.
GSMA officials highlighted that spectrum costs in Pakistan already stand among the highest globally, consuming about 20 percent of operators’ revenue. They advised the government to adopt a more balanced pricing model to allow sustainable investment in next-generation networks. Their recommendations included setting reserve prices conservatively, denominating fees in local currency, offering flexible payment schedules, and deducting the costs of license obligations from spectrum fees to reduce financial pressure on operators.
The association further urged authorities to address legal, regulatory, and fiscal challenges before the auction takes place. They called for disputes over the 2600 MHz band to be resolved to ensure a level playing field and stressed the importance of rollout obligations being realistic in difficult operating conditions, such as security issues in FATA and Balochistan and damages from recent floods. By presenting these proposals, the telecom sector and GSMA are seeking a framework that reflects Pakistan’s economic conditions and supports investment in 5G infrastructure without imposing unsustainable costs on operators.
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