5G spectrum auction: Pakistan’s telecom operators and GSMA present array of demands

ISLAMABAD: Telecom operators of Pakistan and the Global System for Mobile Communications Association (GSMA) on Monday presented a barrage of demands, including lower than the previous auction price, rupee-denominated pricing, 15-year interest-free payments, duty-free import of equipment and smartphones for the long-awaited 5G spectrum auction before the Spectrum Advisory Committee. However, the telecom sector companies failed to get any immediate relief assurance.

This was revealed by a senior government official while talking to Business Recorder after attending a meeting of the Spectrum Advisory Committee, which was held on Monday under the chairmanship of the Federal Minister for Finance and Revenue, Muhammad Aurangzeb.

GSMA and Telecom Operators Association of Pakistan warned the Auction Advisory committee that a delay in spectrum release could lead to a loss of $1.8 to $4.3 billion in economic benefits over the next 5 years.

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Both the association flagged major barriers to the 5G spectrum auction in the country, including pending merger decision stalling spectrum allocation/auction, delayed framework for spectrum roadmap & essential reforms, and disputed spectrum litigations, especially on2600 MHz currently claimed by Sun TV.

Operations association recommended for fair pricing to align with Pakistani market realities, rupee denominated pricing to reduce risk due to currency fluctuations, payment terms as per license life i.e. 20 years; 5-year moratorium, 15 years interest free payments, incentivize 5G adoption to duty free import of 5G equipment and smartphones, resolve spectrum related litigations especially 2600 MHz; ensure level playing field, rollout obligations to factor operating conditions i.e. security in FATA & Balochistan, flood related damages etc. for improved spectrum allocation/auction.

GSMA officials briefed the committee while saying that the spectrum cost in Pakistan is already among the highest globally, accounting for 20 percent of operators’ revenue.

The Association pleaded for a balanced approach to provide the right incentives for sustainable network investment. It further recommended to resolve outstanding legal, regulatory & fiscal issues, set reserve prices conservatively, lower than previous auctions, denominate spectrum fees in local PKR to reduce risks from currency fluctuations, offer payment flexibility with instalment options and affordable upfront fees, deduct costs of licence obligations from spectrum fees to ease operators’ financial burden and commit to a clear spectrum roadmap to reduce uncertainty and support network planning.

CEO Jazz Aamir Ibrahim briefed the committee and said, “Spectrum is the invisible infrastructure behind every call, every payment, and every online classroom. To unlock Pakistan’s digital future — in line with the Prime Minister’s vision — we need a pricing and policy framework that encourages investment, not hesitation. With the right reforms, we can deliver faster networks, stronger exports, and meaningful digital inclusion for millions.”

He further said that Pakistan currently operates on just 274 MHz of spectrum—less than half of what regional peers enjoy and far below global benchmarks. This shortage is not a technical detail; it is the single biggest reason behind network congestion, dropped calls, and slower data speeds experienced by millions of users every day.

Unless spectrum auctions are expedited and made affordable, operators’ ability to deliver reliable connectivity—and Pakistan’s ability to fully participate in the digital economy—will remain severely constrained.”

“When spectrum is priced beyond the reach of operators and compounded by one of the heaviest tax regimes in the world, the entire digital ecosystem suffers. Operators are forced to limit investment, customers face poor service quality, and the government itself loses out on the long-term dividends of a robust digital economy. The real solution lies in rational, investment-friendly policies that prioritize affordability and long-term growth over short-term revenue maximization”, he added.

“Every additional MHz of spectrum is not just about better technology—it is about inclusion. It is about a student in a remote village attending online classes without disruption, a woman entrepreneur using digital payments to grow her business, or a farmer accessing real-time weather data to protect his crops. Spectrum is the invisible infrastructure that enables all of this, and unless we address the shortage, we risk leaving millions of Pakistanis on the wrong side of the digital divide,” Ibrahim added.

An official statement issued by the Finance Ministry noted that participants from the telecom industry and GSMA shared perspectives on advancing Pakistan’s digital transformation through an effective spectrum policy. Discussions underscored the importance of spectrum in enabling the growth of IT and telecom services, supporting exports, jobs, and wider digital adoption.

Aurangzeb welcomed the insights of the industry and GSMA, appreciating the value of global best practices for Pakistan’s spectrum roadmap. The minister also emphasized timely progress on the spectrum process to capture emerging opportunities for Pakistan’s economy and society.

Federal Ministers Shaza Fatima Khawaja and Senator Azam Nazeer Tarar reaffirmed the government’s focus on enabling a digitally connected Pakistan with inclusive, affordable, and high-quality connectivity.

The meeting was attended by Federal Minister for Information Technology & Telecommunication Shaza Fatima Khawaja, Federal Minister for Law and Justice Senator Azam Nazeer Tarar, Julian Gorman, Head of Asia Pacific, GSMA, senior officials from relevant ministries and regulators, and representatives of leading mobile operators.

Copyright Business Recorder, 2025