Pakistan Prepares for 5G Spectrum Auction

PTA Receives Proposals for 5G Spectrum Auction Despite Industry Concerns

Five international consultants have submitted proposals to the Pakistan Telecommunication Authority (PTA) to oversee the 5G spectrum auction, anticipated to be completed within the ongoing fiscal year. However, there are concerns within the industry about whether this is the right time to roll out 5G technology in the country.

In a recent statement, the telecom regulator announced the receipt of technical and financial bids for the auction of next-generation mobile services in Pakistan. Five international consultants have submitted bids: Aetha Consulting Limited, Detecon Consulting FZ-LLC, Frontier Economics Limited, KomKonsult (Private) Limited, and National Economic Research Associates Inc. The PTA confirmed that these bids would undergo a thorough evaluation following the Public Procurement Regulatory Authority (PPRA) rules.

Timeline for the 5G Spectrum Auction

PTA Chairman Hafeezur Rehman, a retired major general, informed the National Assembly Standing Committee on Information Technology and Telecommunications that the 5G spectrum auction is likely to take place by March 2025. However, the auction process has been marked by significant disagreements within the government.

While some officials in the IT ministry advocate for releasing additional spectrum at lower rates to stimulate growth, the finance ministry insists on maximizing auction value through strong competition among telecom operators. The finance minister heads the advisory committee overseeing the auction process, reflecting the differing priorities within the government.

Industry Skepticism and Concerns

Industry leaders have expressed doubts about the timing of the 5G rollout. They argue that the base for IT and telecom services in Pakistan has not expanded sufficiently in recent years. Additionally, the country faces the challenge of “digital load-shedding,” where telecom and mobile data services are interrupted during electricity outages. Recent internet and mobile data disruptions, coupled with restrictions on social media platforms, have deepened skepticism about the future of digitalization in Pakistan.

Jazz CEO Amir Ibrahim has been a vocal critic of launching 5G, arguing that Pakistan has yet to fully leverage the potential of existing 4G services. At a recent event, Ibrahim stated that while customers see 5G as just faster internet and governments view it as a lucrative opportunity, telecom operators are less enthusiastic, questioning the practicality and benefits of the new technology.

Current Market Scenario and Challenges

All major mobile operators in Pakistan, including Zong, Jazz, Telenor, and Ufone, have successfully conducted 5G trials and currently utilize 274 MHz of spectrum. However, an additional 300 MHz of spectrum will need to be auctioned to introduce commercial 5G services.

A significant challenge facing the PTA in the upcoming auction is the potential reduction in market competition. Telenor has decided to exit Pakistan, and the Pakistan Telecommunication Company Limited (PTCL) is currently in the process of acquiring Telenor Pakistan’s stakes. This acquisition is under review by the Competition Commission of Pakistan (CCP) and could impact the overall competition dynamics in the telecom sector.

Conclusion

As Pakistan prepares for its 5G spectrum auction, the PTA must navigate a complex landscape of market readiness, regulatory disagreements, and industry skepticism. With concerns over the timing and potential reduction in market competition, the road to 5G in Pakistan appears challenging. The next few months will be critical in determining whether the auction will proceed smoothly and meet the ambitious targets set by the government and the telecom sector.