The government’s target to launch 5G services by April 2025 faces a potential setback if the Competition Commission of Pakistan (CCP) fails to make a timely decision regarding the acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL). The unresolved status of this merger, along with ongoing litigation over necessary spectrum, is delaying crucial progress, according to a national daily report.
Issues Hindering 5G Rollout
Consultancy firm National Economic Research Associates Inc. (NERA) has raised concerns about these unresolved matters, urging authorities to finalize key decisions related to the number of Cellular Mobile Operators (CMOs) and the Telenor-PTCL merger.
In addition to the merger delay, a critical issue is the ongoing litigation over 140 MHz of the 2.6 GHz spectrum band, which is vital for both 4G and 5G services. This legal dispute has left only 54 MHz of the spectrum available, which is insufficient for even a single mobile operator to meet demand.
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NERA’s Role and Pending Recommendations
In November 2024, the Pakistan Telecommunication Authority (PTA) hired NERA to provide recommendations on releasing the IMT spectrum, which is essential for 5G implementation. However, NERA’s report is likely to be delayed due to the unresolved merger and spectrum litigation issues.
Regulatory Approvals and Further Delays
Once the CCP reaches a decision on the Telenor-PTCL merger, several other regulatory bodies—such as the PTA, SECP, and SBP—must approve the case. Afterward, additional steps including cabinet approval, auction guidelines publication, and preparations by telecom operators could take several more months.
Impact on 5G Rollout Timeline
While the government initially targeted 5G spectrum auctions for March 2023, the current challenges have put the first 5G rollout at risk of being delayed beyond April 2025.
