Pakistan’s telecom industry, supported by GSMA, has laid out a set of demands to the government as it prepares for the highly anticipated 5G spectrum auction. The sector is pressing for lower reserve prices, rupee-based spectrum fees, extended payment terms, and duty-free imports of necessary equipment and devices. Despite these strong appeals, the Spectrum Advisory Committee chaired by Finance Minister Muhammad Aurangzeb offered no immediate concessions, leaving operators uncertain about the future auction framework.
Telecom operators and GSMA representatives have cautioned that continued delays in releasing spectrum could significantly impact the economy. Industry estimates suggest potential losses between $1.8 billion and $4.3 billion over the next five years if the rollout is not expedited. Their concerns extend beyond pricing alone, pointing to unresolved merger cases, lack of a clear spectrum roadmap, and ongoing disputes around the 2600 MHz band currently under contention with Sun TV. These uncertainties, according to the industry, are creating barriers for long-term planning and investment required for 5G deployment.
At the meeting, operators underscored the need for a pricing structure that reflects Pakistan’s economic context. Proposals included denominating spectrum fees in local currency to protect against exchange rate volatility, extending payments over a 20-year license term, and allowing a five-year moratorium on payments with 15 years of interest-free installments. Additionally, the sector is pushing for duty-free imports of 5G equipment and smartphones, which they argue would accelerate adoption and ease financial strain. GSMA highlighted that spectrum charges in Pakistan already account for around 20 percent of operator revenues, among the highest globally, limiting capacity for further network investment.
The recommendations put forward by GSMA and local operators emphasize flexible and sustainable approaches to spectrum management. They have called for conservative reserve prices, significantly lower than those of previous auctions, along with fee deductions accounting for license obligations. Beyond financial relief, operators urged resolution of legal and regulatory challenges to ensure fair competition. Issues around the 2600 MHz band remain particularly pressing, alongside broader fiscal constraints and ongoing disputes. Furthermore, operators requested that rollout obligations account for difficult conditions in certain regions such as FATA and Balochistan, where security challenges and flood damage complicate network expansion. Industry leaders argue that without a balanced policy framework, both operators and consumers risk delayed access to 5G services, hampering digital progress in the country.
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