The Competition Commission of Pakistan’s (CCP) delay in deciding the acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) has raised concerns over meeting the government’s timeline for launching 5G services by April 2025.
According to a report by Business Recorder, officials and industry insiders are concerned regarding the unresolved status of Telenor and the ongoing litigation over 140 MHz of spectrum in the 2.6 GHz band, a prime frequency for both LTE/4G and 5G, posing significant hurdles to the planned rollout.
The National Economic Research Associates Inc (NERA), a US-based consultancy firm hired by the government to oversee the spectrum auction, flagged these issues in its assessment. NERA emphasized the need for clarity on the number of Cellular Mobile Operators (CMOs) in light of the proposed Telenor-PTCL merger and recommended an expedited decision.
Currently, only 54 MHz in the 2.6 GHz band is available, while the remaining 140 MHz is tied up in legal disputes. Experts warn that this limited availability may not meet the requirements of a single operator, undermining the potential to enhance broadband services nationwide.
The Pakistan Telecommunication Authority (PTA) engaged NERA on November 5, 2024, to provide recommendations for releasing spectrum to improve next-generation mobile broadband services.
NERA is expected to complete its report within 60 working days. However, delays in resolving the merger and spectrum litigation could hinder its ability to deliver actionable recommendations.
Once the CCP reaches a decision on the merger, the matter must pass through regulatory approvals, including the PTA, Securities and Exchange Commission of Pakistan (SECP), and State Bank of Pakistan (SBP). This process could take one to two months, further compressing the timeline for the 5G auction.
The government had initially planned to auction the 5G spectrum by March 2023, but unresolved issues have continued to push back the timeline. Without swift resolutions, experts caution that the April 2025 launch target may become unfeasible.
