PTA Mandates 1000 Towers Annually Under 5G Auction Plan

Senior officials of the Pakistan Telecommunication Authority (PTA), led by Chairman Major General (R) Hafeez Ur Rehman and DG PTA Aamir Shehzad, have announced that each telecom operator will be required to deploy 1000 towers annually as part of the regulatory framework underpinning Pakistan’s upcoming 5G spectrum auction, alongside detailed compliance obligations, infrastructure benchmarks, and sector reforms designed to support next-generation connectivity.

The briefing revealed substantial structural, financial, and policy measures designed to ensure a controlled and performance-driven transition to next-generation connectivity.

PTA Mandates 1,000 Towers Annually Under 5G Auction Plan

According to officials, the government has spent the past three to four years preparing the groundwork for additional spectrum release.

A central constraint during this period was spectrum availability. The Frequency Allocation Board (FAB), along with other relevant institutions, undertook coordinated efforts to vacate and reallocate frequencies required for commercial deployment.

Following the issuance of a formal government policy directive, PTA released the Information Memorandum, formally initiating the auction framework.

To align the process with international best practices, the government constituted an advisory committee and authorized PTA to engage an independent consultant. After conducting a comprehensive global benchmarking study, the consultant submitted recommendations tailored specifically to Pakistan’s telecom market structure and investment environment.

Sector Pressures: COVID, Power Shortages, and Currency Volatility

Officials acknowledged that the telecom sector faced significant operational headwinds in recent years.

The COVID-19 pandemic triggered a sharp rise in data consumption, resulting in network congestion and quality-of-service pressures. At the same time, persistent load shedding and power reliability issues adversely affected network performance and operating costs.

Exchange rate volatility further strained operator balance sheets, raising capital expenditure risks. In response to industry concerns, the government agreed to fix the USD exchange rate on the auction day to reduce currency exposure.

Expanded Spectrum Availability

The briefing highlighted a substantial increase in spectrum resources.

Previously, only 274 MHz across three bands was commercially available. Under the new framework, 579.2 MHz of spectrum has been made available, spanning low-, mid-, and high-frequency bands. This expansion is intended to improve both geographic coverage and network capacity.

Officials also noted that from 2021 to 2026, subscriber numbers increased significantly, while 97% of telecom sites are now 4G compatible — providing a technical foundation for 5G rollout.

Quality of Service and Performance Benchmarks

PTA emphasized that the auction is linked to strict performance obligations.

• In 2021, a minimum Quality of Service (QoS) benchmark of 4 Mbps was introduced.
• For the first two years under the new framework, 4G download speeds must average at least 20 Mbps.
• At commercial launch, 5G services must deliver a minimum download speed of 50 Mbps.
• Officials project an estimated 25% increase in overall national mobile broadband speeds following the 5G auction.

Mandatory Auction Participation Conditions

The auction structure includes specific regulatory safeguards:

• Participation in the 3500 MHz band — the primary 5G spectrum — is mandatory.
• In Round 1, operators must acquire spectrum in both the 2600 MHz and 3500 MHz bands.
• A spectrum cap has been imposed to prevent concentration within any single band.
• The auction process is expected to span two to three days.
• Bidders may participate digitally.
• A $15 million bank guarantee is required for eligibility.

Network Rollout and Infrastructure Obligations

The regulatory framework places significant emphasis on infrastructure expansion and service equity.

Each operator will be required to:

• Deploy 1,000 sites annually.
• Install at least 200 of those sites in areas currently experiencing network performance issues.
• Increase tower fiberization on an annual basis.
• Submit and maintain an approved 5G coverage map.

The first phase of deployment will cover the federal capital and provincial capitals, with gradual expansion to additional urban and rural areas to ensure broader national inclusion.

Policy Direction and Sector Reform

The PTA Chairman underscored that sustainable telecom improvement required clear and structured government policy intervention. Officials stated that multiple reform measures — including advisory oversight, international consultation, structured compliance conditions, and spectrum expansion — were introduced to strengthen sector resilience and investment confidence.

A Regulated Transition to Next-Generation Connectivity

Officials characterized the March spectrum auction not merely as a commercial transaction, but as a calibrated regulatory transition toward high-capacity digital infrastructure.

With spectrum availability expanded from 274 MHz to 579.2 MHz, defined speed benchmarks, mandatory rural deployment, fiberization requirements, and anti-monopolization safeguards, the framework reflects a disciplined and compliance-oriented 5G strategy.

The upcoming auction represents a critical inflection point in Pakistan’s telecom modernization roadmap and its broader digital transformation agenda.

See Also: Commercial 5G Launch Targeted for Mid-2026 as PTA Unveils Spectrum Auction Plan