Government Forms Committee to Finalize Pricing and Terms for 5G Spectrum Auction

The federal government has taken a significant step toward the launch of fifth-generation (5G) mobile services by accelerating preparations for the auction of 5G spectrum. According to official sources, the Prime Minister has constituted a dedicated committee to address key issues related to spectrum pricing, payment terms, and policy directives ahead of the 5G spectrum auction.

Under the Prime Minister’s instructions, a sub-committee has been formed and placed under the leadership of Federal Minister Dr. Musadik Malik. The sub-committee will determine the base prices for each available spectrum band and recommend a comprehensive framework for the auction process. This includes finalizing payment structures and proposing policy guidelines to ensure transparency, competitiveness, and long-term sustainability of the telecom sector.

Government Forms Committee to Finalize Pricing and Terms for 5G Spectrum Auction

Sources indicated that the committee will carefully assess the pricing of spectrum across different frequency bands, keeping in view market conditions, industry capacity, and the broader objective of accelerating digital connectivity in the country. The payment terms, including installment structures and financing options, are also under active consideration, as these will play a critical role in determining telecom operators’ participation and investment capacity.

Divergent views have emerged within the federal cabinet regarding the approach to the auction. Some cabinet members are reportedly in favor of conducting the spectrum auction under the same terms and conditions used in previous auctions, arguing that established frameworks provide regulatory certainty and protect government revenues. Others, however, are advocating for more flexible and relaxed conditions, particularly for 5G spectrum, to encourage wider participation, lower entry barriers, and facilitate faster rollout of next-generation services.

Telecom operators have also raised specific concerns regarding financial risk, particularly in relation to exchange rate volatility. Industry sources revealed that telecom companies have formally demanded that the US dollar exchange rate be frozen on the day of the auction. According to operators, such a measure would allow interest payments on spectrum fees in Pakistani rupees, reducing exposure to currency fluctuations and easing the financial burden associated with long-term spectrum payments.

See Also: PTA Finalizes Preparations for 5G Spectrum Auction, Awaits Government Policy Directive

The sub-committee will consolidate its recommendations after finalizing the payment terms. Once approved, these recommendations will form the basis of the final policy directive for the 5G spectrum auction. Following the issuance of official policy guidelines by the federal government, the Pakistan Telecommunication Authority (PTA) will issue the Information Memorandum, a critical document that outlines auction rules, spectrum details, eligibility criteria, and bidding procedures for prospective participants.

Sources further stated that the federal government has set a target of mid-February for conducting the 5G spectrum auction. If completed on schedule, the auction would mark a major milestone in Pakistan’s digital transformation efforts and pave the way for advanced mobile broadband services, enhanced data speeds, low-latency connectivity, and new use cases across sectors such as industry, healthcare, education, and smart infrastructure.

The successful auction and rollout of 5G services is essential for strengthening Pakistan’s digital economy, attracting investment, and improving service quality for consumers. However, industry stakeholders stress that balanced pricing, realistic payment terms, and supportive policy measures will be critical to ensuring the long-term success of 5G in the country.