PTA has announced it received five proposals from international consultants to manage the Pakistan 5G spectrum auction, aiming for completion within the ongoing fiscal year. However, industry experts have raised concerns about whether now is the right time to proceed with the 5G rollout.
In a statement, the telecom regulator revealed it has received both technical and financial bids for the auction of next-generation mobile services in Pakistan from five international firms: Aetha Consulting Limited, Detecon Consulting FZ-LLC, Frontier Economics Limited, KomKonsult (Private) Limited, and the National Economic Research Associates Inc. The PTA stated that a thorough evaluation of these bids would be conducted according to Public Procurement Regulatory Authority (PPRA) rules.
According to PTA Chairman Hafeezur Rehman, a retired major general, the 5G spectrum auction is under consideration and may take place by March 2025. However, significant disagreements have arisen within the government regarding the auction’s approach. While some officials from the IT ministry advocate for releasing additional spectrum for 5G at lower rates to stimulate growth, the finance ministry insists on enhancing competition among telecom operators to maximize the auction’s value. The finance minister leads the advisory committee overseeing this process.
Industry leaders contend that the IT and telecom infrastructure in Pakistan has not expanded sufficiently in recent years, leading to the emerging issue of “digital load-shedding,” where telecom and mobile data services are interrupted during power outages. Recent disruptions in internet and mobile services, along with restrictions on certain social media platforms, have further fueled skepticism about the future of digitalization in the country.
Jazz CEO Amir Ibrahim has expressed strong reservations about launching 5G in Pakistan, arguing that the country has yet to fully capitalize on its existing 4G capabilities. At a recent event, Ibrahim noted that while customers perceive 5G as merely faster internet and governments view it as a profitable auction opportunity, telecom operators are questioning the practicality and benefits of this new technology.
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All major mobile operators in the country, including Zong, Jazz, Telenor, and Ufone, have successfully conducted 5G trials and are currently utilizing 274 MHz of spectrum. However, to launch commercial 5G services, an additional 300 MHz of spectrum needs to be auctioned.
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Another significant challenge for the PTA in the upcoming 5G spectrum auction is the potential reduction in market competition, as Telenor has already announced its exit from Pakistan. The Pakistan Telecommunication Company Limited (PTCL) is in the process of acquiring Telenor Pakistan’s stakes, a deal currently under review by the Competition Commission of Pakistan (CCP).
