ECC Accepts Key Recommendation to Fix Dollar-Linked 5G Spectrum Prices on Auction Day

The Economic Coordination Committee (ECC) of the Cabinet has accepted a key recommendation to fix dollar-linked prices for Pakistan’s 5G spectrum on the day of auction, clearing an important policy issue ahead of the long-awaited spectrum sale, well-placed sources told this correspondent.

Under the approved mechanism, spectrum payments will be made in Pakistani rupees but indexed to the dollar rate prevailing on the auction day, effectively locking the exchange rate at the time of bidding. The move is aimed at protecting government revenues from currency volatility while providing pricing clarity to bidders.

The decision follows the ECC’s approval of recommendations submitted by the Auction Advisory Committee (AAC), which had reviewed spectrum valuation, auction design, payment terms, and rollout obligations as part of preparations for Pakistan’s first 5G auction.

Sources said the government plans to offer around 600 megahertz of spectrum, with the auction tentatively expected in February 2026. However, the ECC did not approve proposals seeking tax relief for telecom operators or a 10-year interest-free installment plan for spectrum payments.

Instead, the approved framework предусматривает a 50 percent upfront payment, with the remaining amount to be paid over five years. Prices for new spectrum bands—including 700 MHz, 2100 MHz, 2600 MHz, and 3500 MHz—will be determined using regional benchmarks, keeping in view prevailing rates in comparable markets.

As part of its assessment, the AAC considered input from National Economic Research Associates Inc. (NERA), a US-based consultancy hired by Pakistan for the 5G auction. NERA had cautioned that high spectrum prices could discourage participation, reduce competition, and negatively affect innovation and consumer outcomes. The consultancy recommended lower reserve prices and extended payment terms, citing examples from countries such as Vietnam, Indonesia, and Bangladesh, and suggested additional incentives for the 3.5 GHz band, which is dedicated exclusively to 5G services.

The Pakistan Telecommunication Authority (PTA) had also supported lower spectrum pricing, arguing that greater emphasis should be placed on rollout obligations to attract investment and improve service quality across the country.

Officials said further details, including the final auction date and band-specific terms, would be announced by the IT ministry and PTA in due course as preparations for the 5G auction move forward.

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ECC Clears Way for Pakistan’s 5G Spectrum Auction, Approves Advisory Committee Recommendations