The auction for the 5G spectrum in Pakistan is currently experiencing delays, primarily due to the Competition Commission of Pakistan (CCP) not yet deciding on PTCL’s acquisition of Telenor Pakistan. Furthermore, ongoing legal disputes concerning the 2.6 GHz band have contributed to the holdup. The National Economic Research Associates Inc. (NERA), a consultancy firm from the United States engaged by the government, has submitted its preliminary report to the Pakistan Telecommunication Authority (PTA). However, the final version remains pending as these issues have yet to be resolved.
Reports suggest that the 2.6 GHz band, which is highly sought after by mobile operators for its support of LTE/4G and 5G technologies, is not entirely accessible. Out of the 194 MHz available in this band, 140 MHz remains under litigation, limited access to 54 MHz available for use. Experts express concern that this limited spectrum may be not sufficient for even a single operator, raising concerns about broadband expansion.
NERA has underscored these challenges, emphasizing the need for a prompt resolution regarding the PTCL-Telenor merger and the availability of spectrum. The firm has advised that the number of Cellular Mobile Operators (CMOs) eligible to participate in the auction should be determined without delay.
In its most recent meeting, the Advisory Committee on Spectrum Release, led by Finance Minister Senator Muhammad Aurangzeb, addressed this issue. The consultancy will continue to refine its report until the legal matters are resolved. Once finalized, the recommendations will be presented to the Economic Coordination Committee (ECC) for review before being forwarded to the Federal Government for approval.
PTA contracted NERA for consultancy services on November 5, 2024, with the stipulation that the report be finalized within 60 working days. Nevertheless, the timeline has been prolonged due to legal and regulatory challenges, which may have resulted in increased charges from the international consultant.
The lack of clarity on spectrum allocation and market competition is slowing Pakistan’s 5G technology in Pakistan. The government must accelerate decision-making processes to facilitate a clear and timely auction. Failure to address these issues may result in delays in broadband expansion and digital growth, affecting overall connectivity and investment in the telecom sector.
For more daily updates, please visit our News Section.