Breaking: Federal Cabinet Approves 5G Spectrum Auction, Low Prices to Accelerate Rollout

The federal cabinet has approved the auction of 5G spectrum, paving the way for the issuance of policy directives by the federal government, sources said. The forthcoming policy guidelines will outline the objectives, scope, and conditions of the 5G spectrum auction, including the base price for each spectrum band.

According to sources, the government has decided to keep spectrum prices relatively low, in line with recommendations made by its appointed consultant. The strategy aims to encourage telecom operators to invest more heavily in network infrastructure, rather than committing large sums upfront for spectrum acquisition.

Sources said the policy framework is expected to include rollout obligations requiring telecom operators to launch 5G services in major cities within six months of the auction. The auction itself is anticipated in mid-February 2026, with the Pakistan Telecommunication Authority (PTA) having finalized its preparatory work.

Once the policy guidelines are issued, the PTA will finalize the auction format, identify the spectrum bands to be offered, and determine reserve prices, lot sizes, and rollout obligations. The regulator will also release a detailed information memorandum setting out the technical, legal, and commercial aspects of the spectrum.

The Information Memorandum will include details on the auction mechanism, bidding rules, eligibility criteria, spectrum caps, payment schedules, licensing terms, and compliance obligations. It will also specify network rollout timelines, coverage targets, and service quality requirements.

PTA will subsequently announce the auction rules, bidding stages, and a complete schedule. Interested telecom operators will be required to submit applications, bank guarantees, and other prescribed documentation. Upon completion of the auction, spectrum licenses will be awarded to successful bidders in accordance with the approved rules.

Sources said the decision to keep spectrum prices low has already encouraged all major telecom operators to express interest in participating in the auction. The government believes this approach will accelerate 5G deployment while strengthening long-term investment in Pakistan’s digital infrastructure.