Pakistan’s eagerly awaited 5G spectrum auction is set to be postponed by at least four months, primarily due to the Competition Commission of Pakistan’s (CCP) indecision on the proposed merger between Telenor Pakistan and PTCL-owned Ufone.
The delay has raised questions about the number of telecom operators that will be eligible to participate in the next-generation spectrum auction, clouding the future of Pakistan’s digital expansion.
Sources within the Ministry of Information Technology revealed that 5G services can only be launched at least three months after the government finalizes and issues the official policy directives for the auction. However, the advisory committee tasked with guiding the auction process has yet to convene, hindered by escalating geopolitical tensions in the region, particularly the deteriorating relations between Pakistan and India.
The Pakistan Telecommunication Authority (PTA) confirmed that the international consultant engaged for the 5G project has completed its technical assessment. The consultant’s comprehensive report considers multiple scenarios, including the participation of either three or four telecom operators, contingent on the fate of the Telenor-PTCL merger. While technical preparations for the auction are complete, progress remains stalled due to the lack of clear policy direction.
Initially, the federal government had charted a roadmap targeting the launch of 5G services by June 2025. This plan called for policy reforms to be finalized by March, policy directives issued in April, the auction conducted in May, and commercial rollout commencing in June. With mid-May already behind, and no action from the advisory committee, the original timeline now appears unattainable.
Both Telenor and PTCL have expressed frustration at the CCP’s delay. The merger application, filed on February 29, 2024, remains under Phase II scrutiny. PTCL has pledged a $1 billion investment tied to the merger and has sought support from the Special Investment Facilitation Council (SIFC) to expedite regulatory approvals.
This ongoing regulatory uncertainty continues to impede finalization of essential 5G policy reforms, putting Pakistan’s digital infrastructure ambitions and rollout plans at considerable risk.
