Breaking: Govt Issues Policy Directives For 5G Auction, Targets $630m Revenue

The federal government has approved the auction of next-generation mobile spectrum and issued a formal policy directive to the Pakistan Telecommunication Authority (PTA), setting an estimated minimum non-tax revenue target of $630.4 million.

Under the directive issued by the Ministry of Information Technology and Telecommunication, the PTA has been tasked with auctioning spectrum across the 700, 1800, 2100, 2300, 2600, and 3500 MHz bands. The move marks the country’s largest spectrum release to date and lays the regulatory groundwork for next-generation mobile services, including 5G.

The auction will include 15 MHz of paired spectrum in the 700 MHz band, 3.6 MHz in 1800 MHz, 20 MHz in 2100 MHz, 50 MHz in 2300 MHz, 190 MHz in 2600 MHz, and 280 MHz of unpaired spectrum in the 3500 MHz band, which is considered critical for 5G deployment.

The policy adopts a technology-neutral approach, allowing operators to deploy advanced mobile technologies under the existing regulatory framework. Both existing cellular mobile operators and new entrants will be eligible to participate, subject to spectrum caps.

Base prices have been set in US dollars. The 700 MHz paired spectrum has been priced at $6.5 million per MHz, while paired spectrum in the 1800 MHz and 2100 MHz bands is priced at $14 million per MHz each. Unpaired spectrum in the 2300 MHz band has been set at $1 million per MHz, 2600 MHz at $1.25 million per MHz, and 3500 MHz at $0.65 million per MHz. Payments will be made in Pakistani rupees at the State Bank of Pakistan’s prevailing exchange rate.

Winning bidders will receive a 15-year license, with provisions for spectrum trading or sharing in line with PTA regulations. To ease financial pressure, the government has allowed a one-year payment moratorium, after which operators may opt for upfront payment or deferred installments. Deferred payments will carry an annual interest charge of KIBOR plus three percent.

The directive also requires post-auction spectrum rationalization in the 1800 and 2100 MHz bands to ensure efficient and contiguous spectrum use. Licensees will be required to roll out next-generation mobile networks in phases, with service quality obligations set by the regulator.

The decision signals a renewed push by the government to expand mobile broadband capacity and advance 5G readiness while generating non-tax revenue amid ongoing economic challenges.

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Breaking: IT Minister Announces 5G Spectrum Auction Date, Reveals Number of Bands Involved