5G Auction Goes Live Tomorrow as Pakistan Plans Biggest Spectrum Release Yet

Federal Minister for IT and Communications Shaza Fatima Khawaja said in a recent background briefing that Pakistan has been operating in only the 274 MHz spectrum since 1987.

She said 600 MHz spectrum would be auctioned across the country tomorrow.

The Minister explained that the 5G spectrum auction will be conducted through specialized software, and the auction process will be broadcast live to ensure transparency.

The software used in the 5G spectrum auction has complete security, and a backup system is also in place in case unexpected situations occur during the auction.

Aamir Shehzad, Director, Licensing, PTA also briefed the participants. He added that Pakistan last conducted 3G and 4G spectrum auctions in 2013-2014 and that Pakistan currently has the lowest amount of spectrum among the countries in the region.

He said the government has scrapped right-of-way charges and six spectrum bands will be available in the upcoming 5G auction.

According to the briefing, the mid-band spectrum of 2300 MHz and 2600 MHz is suitable for both 4G and 5G services. Due to service quality issues, the number of communication sites nationwide reached 59,000.

Officials said the 5G service will initially offer speeds of 50 Mbps.

The government has taken steps to address the challenges faced by telecom operators and has prepared a nine-year plan for the rollout of 5G services. Under this plan, telecommunications operators plan to add 3,000 new sites every year and gradually improve service quality.

The PTA planned a two-stage auction process. In the first stage, spectrum bands are allocated, and in the second stage, companies bid for use of those bands.

To participate in the auction, operators must bid in the 2600 MHz and 3500 MHz bands. The 2600 MHz band is suitable for both 4G and 5G, while the 3500 MHz band is dedicated to 5G services.

Officials added that while five bids are planned for the first day of the auction, the entire process could continue once or multiple times depending on bidding activity.

PTA Chairman and Major General (Retired) Hafeez Ur Rehman said the telecom companies had hired their own consultants to participate in the auction.

He added that all telecom companies had tested the software through mock auctions, but none had expressed concerns about the system.

The PTA chairman also said that the introduction of 5G will not make mobile packages more expensive, adding that the regulator will ensure that the prices of the packages do not increase.

He said the PTA had launched digital assistants to help consumers and the authority was receiving complaints from mobile users.

Addressing concerns about mobile phone taxation, he clarified that the PTA does not levy taxes on mobile phones, adding that no one at the PTA knows how much tax applies to specific mobile phone models.

Revenue expectations and purpose of 5G auction

The PTA president said it is yet to be determined how much revenue will be generated from the 5G spectrum auction.

He emphasized that the government’s goal is not to raise money, but rather to improve connectivity across the country.

Shaza Fatima also said that the purpose of the auction is to provide better services to citizens and advance Pakistan in the digital world. She added that the Internet has now become the foundation of economics, security and social life.

He noted that quality of service issues are more common in rural areas because there are fewer telecom towers. To address this issue, PTA introduced new mechanisms to ensure quality of service for consumers.

He added that the regulator is currently monitoring network quality at the Union Council level.

Responding to public complaints about mobile networks not functioning due to power outages, he said power outages should not affect service availability as PTA pays for network towers.

spectrum price

Shaza Fatima said the government had designed the auction framework in line with international best practices.

She explained that selling spectrum at too high a price defeats the purpose, comparing it to selling land that is too expensive for anyone to build on.

She added that if spectrum remains unused after being purchased, there could be a loss of $3 billion to $4 billion.

Using another analogy, she said killing the hen that lays the golden eggs would not be in the long-term interest, adding that the government had been committed to protecting the long-term value of the telecoms sector.

She also noted that in some wealthy countries, spectrum is available for free, and the government’s goal is to auction spectrum at the lowest possible cost while ensuring service deployment.

The Spectrum Advisory Committee headed by the Finance Minister decided on the auction mechanism after consultations.

Challenges in the telecommunications sector

Shaza Fatima said that as Pakistan neared default in 2022, telecom operators were unable to purchase network upgrade equipment.

She added that delays in network upgrades are one of the reasons why internet services today sometimes do not work properly.

According to her, the telecom sector contributed Rs. Over the past five years, 1.6 trillion won has gone into the national treasury.

She also said that mobile network services in Pakistan are very affordable by global standards.