Pakistan’s 5G auction faces spectrum and policy challenges

NERA highlights administrative restrictions, underused spectrum, and foreign currency-based 5G auctions

ISLAMABAD: The National Economic Research Associates (NERA), a US-based consultancy hired by the Pakistan Telecommunication Authority (PTA), has identified major obstacles that could delay the rollout of 5G spectrum technology, planned for April 2025.

NERA shared its preliminary findings with the advisory committee on Friday after a week of stakeholder consultations. The committee, chaired by Finance Minister Muhammad Aurangzeb, discussed issues related to the release of the International Mobile Telecommunication (IMT) spectrum.

NERA highlighted key obstacles, including administrative restrictions on internet services, low utilization of existing spectrum, and the decision to auction the 5G spectrum in foreign currency instead of local currency. These issues could limit competition and reduce investment in next-generation technology. Most countries now hold spectrum auctions in local currency to ensure market accessibility.

Some telecom operators raised concerns about economic instability, restrictive policies, and their limited capacity to participate in the auction. These operators noted that the country has yet to fully leverage its 4G spectrum, launched three years ago.

The finance minister emphasized the significance of a strong digital economy for sustainable development. He reaffirmed the government’s commitment to enhancing connectivity and improving digital infrastructure to support economic growth.

NERA will deliver its final report, including policy recommendations and a roadmap for the auction, in the coming months. It also suggested balancing affordable access with foreign exchange earnings by easing restrictions on internet traffic and encouraging sector expansion.

The PTA’s ability to address these challenges will determine the success of the 5G auction and the rollout’s contribution to Pakistan’s digital transformation.

Monitoring Desk
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