The much-anticipated 5G spectrum auction in Pakistan is facing delays as critical issues remain unresolved. The Competition Commission of Pakistan (CCP) has yet to make a decision regarding the acquisition of Telenor Pakistan by PTCL, while legal disputes surrounding the 2.6 GHz band have further stalled the process.
Unresolved Spectrum Issues
The 2.6 GHz band, a key frequency band favored for LTE/4G and 5G technologies, remains partially unavailable. Of the 194 MHz in this band, only 54 MHz is accessible, as 140 MHz is currently under litigation. This limited availability is raising concerns that even a single operator may not have sufficient spectrum for optimal network performance. Experts warn that this situation could hinder Pakistan’s broadband expansion and 5G rollout.
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Consultancy Report and Recommendations
National Economic Research Associates Inc. (NERA), a US-based consultancy firm hired by the government, has submitted its initial report to the Pakistan Telecommunication Authority (PTA). However, due to the ongoing legal challenges, the final draft of the report is still pending. NERA has already pointed out the urgency of resolving the PTCL-Telenor merger and the spectrum availability issues. It has emphasized that the number of Cellular Mobile Operators (CMOs) participating in the auction must be finalized soon.
Continuing Delays and Timeline Extension
The Advisory Committee on Spectrum Release, led by Finance Minister Senator Muhammad Aurangzeb, discussed the situation during its last meeting. While the legal issues remain unresolved, NERA is continuing to refine its report. Once the final draft is ready, the recommendations will be reviewed by the Economic Coordination Committee (ECC) before being sent for approval to the Federal Government. PTA had engaged NERA for consultancy services on November 5, 2024, with an initial 60-working-day timeline for completion. However, due to the delays, the timeline has been extended, and it is likely that NERA may have incurred additional charges due to these hold-ups.
Our Take
The lack of clarity on spectrum allocation and unresolved market competition issues is delaying Pakistan’s 5G progress. The government must accelerate its decision-making process to ensure the spectrum auction proceeds transparently and on time. Failure to resolve these issues could lead to setbacks in broadband expansion, negatively impacting digital growth and connectivity across the country.
