Pakistan Gets Its Biggest-Ever 5G Spectrum Release of 606 MHz, What Happens Next?

Pakistan’s long-awaited journey toward next-generation connectivity gained significant momentum this week after the Frequency Allocation Board (FAB) identified 606 MHz of new spectrum across six crucial bands for the country’s upcoming 5G spectrum auction.

Government officials say the move marks the biggest spectrum expansion in Pakistan’s telecom history, offering more than 200 percent additional capacity compared to the nation’s existing holdings, a step they describe as critical for powering digital transformation, AI-driven services, high-speed broadband, and future smart-city infrastructure.

The newly identified spectrum spans the 700, 1800, 2100, 2300, 2600, and 3500 MHz bands, the globally preferred mix for 5G deployment. Together, they give Pakistan the room needed for low-latency connectivity, wider coverage, and faster mobile internet services.

A High-Level Committee Takes Charge of the 5G Roadmap

Recognizing the strategic importance of the transition, the Government of Pakistan has formed a Spectrum Advisory Committee, chaired by Finance Minister Muhammad Aurangzeb, to steer the policy process, streamline the auction roadmap, and finalize key decisions on spectrum release and 5G rollout timelines.

The committee includes senior officials from the Ministry of IT & Telecom, PTA, FAB, and other relevant agencies, ensuring alignment between technical, economic, and regulatory considerations.

The committee is expected to finalize the Policy Directive soon. Once issued, PTA will proceed with the auction process by finalizing documentation, releasing the Information Memorandum (IM), and inviting operators to participate. Officials believe this phase will formally signal Pakistan’s entry into the regional 5G race, something the country has trailed for years due to financial constraints, regulatory complexity, and rising operational costs.

Fresh Uncertainty: Litigation and Delays Challenge the Auction

Despite the momentum created by identifying 606 MHz, serious challenges have resurfaced. The Spectrum Advisory Committee is meeting today (Friday) to take final decisions on the auction’s structure, even as 154 MHz in the 2600 MHz band, widely considered the most suitable band for Pakistan’s 5G launch, remains stuck in litigation.

This unresolved dispute represents one of the largest obstacles to meeting the government’s earlier target of completing the auction by December 2025. Compounding the issue is the slow progress of the PTCL–Telenor merger, which remains a key variable for determining spectrum caps, auction design, and the competitive landscape.

Government sources confirm that representatives from National Economic Research Associates (NERA), the US-based international consultancy firm hired to craft Pakistan’s 5G pricing and valuation model, have arrived in Islamabad and will brief the committee. Their report covers market readiness, spectrum valuation, reserve prices, band allocation, rollout obligations, and policy recommendations for the final 5G framework. The long-delayed auction is now expected to take place in February or March 2026, depending on the litigation outcome and cabinet approvals.

NERA’s Global Expertise to Drive Pricing and Auction Strategy

The PTA engaged NERA to ensure a market-oriented, investment-friendly auction model that avoids past mistakes. Their mandate includes setting appropriate base prices that balance government revenue needs with operator affordability, designing an auction structure that maximizes participation, proposing measures to attract foreign investment, and ensuring that spectrum utilization is efficient and sustainable nationwide.

Industry watchers say NERA’s recommendations will carry significant weight, especially after previous auctions struggled due to high reserve prices and conditions that operators considered commercially unworkable.

Why This Spectrum Release Matters for Pakistan

Pakistan’s telecom operators have long argued that the current spectrum pool is insufficient and scattered across incompatible blocks, leading to poor service quality and inconsistent speeds. The addition of 606 MHz represents a turning point because it offers the scale needed to stabilize existing 4G performance while providing the capacity required for commercial 5G rollout.

A major expansion like this can improve indoor coverage, especially through bands like 700 MHz, which are critical for deep penetration in rural and semi-urban regions. It is also expected to reduce chronic network congestion, a key reason behind Pakistan’s rising volume of telecom complaints. Moreover, stable high-capacity networks are essential for enabling next-generation services such as AI workloads, IoT deployments, industrial automation, healthtech applications, and cloud-driven enterprise growth.

A transparent, well-designed auction has the potential to attract foreign investment from technology-focused economies seeking entry into emerging digital markets. However, this potential hinges on how operator concerns are addressed.

When Will Pakistan’s 5G Auction Happen?

Officials say the auction could take place within the first half of 2026, dependent on the federal government issuing the Policy Directive and on the resolution of the 2600 MHz litigation. Economic conditions, operator readiness, and cabinet approvals will ultimately determine the timeline.

Will the 5G Auction Really Work If Operators Aren’t Happy?

While the identification of 606 MHz is a milestone, the sector’s deep-rooted challenges could undermine the auction’s success. Operators remain concerned about dollar-denominated spectrum fees, which expose them to extreme currency risk in a volatile market. High taxation, among the highest in the region, combined with heavy regulatory obligations has further reduced profitability and weakened investment appetite.

The inefficiency of the Universal Service Fund (USF) remains another major concern. Operators argue that USF has not delivered the rural expansion results it was designed for, making 5G rollout in remote and low-revenue areas financially unfeasible without meaningful support.

Additionally, government-ordered network shutdowns, especially long-running suspensions in Balochistan, continue to cause significant financial losses. These shutdowns disrupt mobile internet usage, affect millions of freelancers and small businesses, and damage sector trust. Operators say such unpredictable disruptions undermine any long-term investment planning.

The ongoing PTCL–Telenor merger also adds uncertainty to the competitive landscape. Auction design, spectrum caps, and market participation depend heavily on the final shape of this merger, which has yet to be fully concluded.

Pakistan’s economic climate further complicates matters. Inflation, rising input costs, and limited access to foreign capital make large spectrum investments more challenging. These factors collectively increase the risk of operators taking a cautious approach or demanding concessions before committing.

How These Risks Could Undermine the Auction

If the government does not address these structural concerns, operators may choose to stay away or bid minimally, leaving large blocks of spectrum unsold. This could force the government to revise base prices, introduce flexible payment options, or offer regulatory concessions, moves that may reduce the expected fiscal gains.

Even if the auction proceeds, operators might adopt slow and limited rollout strategies, especially in less profitable regions, if they remain uncertain about returns. This could delay Pakistan’s progress in IoT, automation, cloud services, and smart-city development, pushing the country further behind regional competitors.

Will the Auction Be Successful If Operators Are Dissatisfied?

The answer depends entirely on how the government responds. The 606 MHz spectrum release is a huge opportunity, but its success relies on resolving key bottlenecks: dollar-based pricing, excessive taxation, regulatory burdens, merger clarity, and trust-building with operators.

If these issues are addressed, the auction could become a defining moment for Pakistan’s digital future. If not, it risks repeating past disappointments, low participation, underutilized spectrum, and delayed nationwide rollout.

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