Pakistan’s first-ever 5G auction: decisions to be finalised by SAC today
ISLAMABAD: The Spectrum Advisory Committee (SAC), headed by Finance Minister Muhammad Aurangzeb, is scheduled to meet Friday (Nov 14) to finalize decisions for Pakistan’s first-ever 5G spectrum auction, despite uncertainty hovering around, as the 154 MHz in the 2600 band - the most suitable for the launch of 5G in the country is still tied up in litigation.
Official sources revealed that representatives of National Economic Research Associates Inc. (NERA) –a United States-based international consultancy firm hired by the government for the spectrum auction have arrived in Islamabad. The consultancy firm would present its report before the Advisory Committee.
Prime Minister Shehbaz Sharif had given December 2025 as a deadline for the spectrum auction. However, the delay in the PTCL-Telenor merger, as well as the litigation on the 154 MHz prime band, resulted in delaying the process.
5G rollout faces serious jeopardy, admits govt
The government planned to present 562 MHz for the spectrum auction, but 140 MHz is still in litigation. An official said that the government has spectrum in all ITU bands earmarked for 5G, i.e., 700, 2100, 2300, 2600, and 3300 MHZ and above bands, which are suitable for 5G.
The same can be presented for auction, envisaging the technology-neutral, i.e., for enactment of 4G in 2100, 2300, and 2600, and utilisation of the same for 5G as well in the country.
The government is now set to convene a crucial meeting of the Spectrum Advisory Committee on Friday to finalize decisions regarding the spectrum auction.
Sources told Business Recorder that the meeting will define the roadmap for the long-delayed next-generation mobile technology auction—now expected in February or March 2026—after repeated setbacks caused by legal disputes and regulatory hurdles.
The international consultant will brief the committee with a comprehensive report on market readiness, spectrum valuation, pricing strategy, band allocation, rollout obligations, and policy recommendations forming the core of Pakistan’s 5G framework.
Federal IT and Telecom Minister Shaza Fatima Khawaja last month warned that Pakistan’s much-awaited 5G rollout faces serious jeopardy — admitting that crippling input costs, the region’s highest taxation, low Average Revenue Per User (ARPU), and the dollar-pegged license pricing have already strained the sector — while ongoing litigation over the crucial 154 MHz spectrum in the 2600 band threatens to further delay or even derail the spectrum auction altogether.
Telecom operators and the Global System for Mobile Communications Association (GSMA) have warned that further delay in spectrum release could cost Pakistan USD1.8 to USD4.3 billion in lost economic benefits over the next five years.
Operators have demanded lower-than-previous auction prices, rupee-denominated spectrum fees, 15-year interest-free payments, and duty-free import of 5G equipment and smartphones to ensure sustainable rollout. However, the country is on the International Monetary Fund (IMF) programme, which discourages such incentives.
GSMA pointed out that Pakistan’s spectrum cost is already among the highest globally, consuming about 20 percent of operators’ revenues, and urged a balanced, investment-friendly approach over short-term revenue gains.
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.
Copyright Business Recorder, 2025