Pakistan’s 5G Rollout Still Uncertain, Confirms International Consultant

The spectrum auction for 5G in Pakistan faces delays as the Competition Commission of Pakistan (CCP) has yet to decide on the acquisition of Telenor Pakistan by PTCL. Additionally, legal disputes over the 2.6 GHz band have further stalled the process. National Economic Research Associates Inc. (NERA), the US-based consultancy firm hired by the government, has submitted its initial report to the Pakistan Telecommunication Authority (PTA). However, the final draft is still pending due to these unresolved matters.

Sources indicate that the 2.6 GHz band, considered the most attractive for mobile operators due to its LTE/4G and 5G support, is not fully available. Of the 194 MHz in this band, 140 MHz remains under litigation, limiting access to only 54 MHz. Experts believe this may not be sufficient for even a single operator, raising concerns about broadband expansion.

NERA has already highlighted these challenges, stressing the urgency of resolving the pending PTCL Telenor merger decision and spectrum availability. It has recommended that the number of Cellular Mobile Operators (CMOs) participating in the auction should be finalized soon.

The Advisory Committee on Spectrum Release, chaired by Finance Minister Senator Muhammad Aurangzeb, discussed the matter in its last meeting. Until the legal issues are settled, the consultancy firm will continue refining its report. Once completed, its recommendations will be reviewed by the Economic Coordination Committee (ECC) before being sent to the Federal Government for approval.

PTA engaged NERA for consultancy services on November 5, 2024, under a contract that required the report to be completed within 60 working days. However, the delays caused by legal and regulatory hurdles have extended the timeline, and the international consultant may have charged more because of these delays.

Our Take

The lack of clarity on spectrum allocation and market competition is slowing Pakistan’s 5G progress. The government must accelerate decision-making to ensure a transparent and timely auction. Without a resolution, broadband expansion and digital growth could face setbacks, affecting overall connectivity and investment in the telecom sector.

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