In a bid to strengthen Pakistan’s telecommunications sector, the government has approved two major initiatives, one to auction next-generation mobile spectrum and another to introduce a regulatory framework for Mobile Virtual Network Operators (MVNOs).
According to media reports, the Ministry of Information Technology and Telecommunication has directed the Pakistan Telecommunication Authority (PTA) to hold an auction for the next-generation mobile (IMT) spectrum, with a projected minimum non-tax revenue of $630.4 million.
The auction will include spectrum in multiple frequency bands, marking the largest spectrum release to date. PTA will auction spectrum in the 700, 1800, 2100, 2300, 2600, and 3500 MHz bands. This release will include a total of 15 MHz paired spectrum in 700 MHz, 3.6 MHz in 1800 MHz, 20 MHz in 2100 MHz, 50 MHz in 2300 MHz, 190 MHz in 2600 MHz, and 280 MHz unpaired spectrum in the 3500 MHz band, which is crucial for the deployment of 5G technology.
The auction is designed to be technology-neutral, allowing both existing cellular mobile operators (CMOs) and new entrants to participate, subject to spectrum caps.Â
The minimum base prices for the spectrum are set in US dollars, with 700 MHz paired spectrum priced at $6.5 million per MHz, and 3500 MHz spectrum at $0.65 million per MHz. Payments will be made in Pakistani rupees at the prevailing exchange rate.
Operators can either pay the full fee by the first anniversary of obtaining the license or choose a deferred payment plan. Under the latter option, operators can pay at least 50% by the first anniversary, with the remaining 50% paid in five equal annual installments starting from the second anniversary. An interest rate of KIBOR + 3% will be charged on any unpaid amount.
The license, valid for 15 years, will allow winning bidders to trade or share the spectrum in accordance with the PTA’s regulations. To facilitate network expansion, operators will be required to adhere to new obligations set by PTA, which include a phased next-generation mobile network with improved service quality. To ease financial burdens, the government has provided a one-year payment moratorium.
Additionally, the directive mandates spectrum rationalization in the 1800 and 2100 MHz bands post-auction to ensure efficient use of contiguous spectrum holdings.
Meanwhile, in another pivotal move to promote competition and innovation, the PTA has introduced a new policy framework for Mobile Virtual Network Operators (MVNOs), following approval from the Federal Cabinet.
The framework will allow MVNOs to offer mobile services under their brand identities through commercial agreements with licensed Mobile Network Operators, without the need for their own spectrum. The initiative is expected to enhance consumer choice, reduce costs, and improve service quality across the country.
The MVNO licenses will be issued for an initial period of 15 years, subject to meeting regulatory requirements. The new policy is part of Pakistan’s broader “Digital Pakistan” vision, aiming to boost mobile service accessibility and inclusivity, attract investment, and create new job opportunities. The PTA will soon begin the licensing process for MVNOs, with a template for licenses to be developed in line with the new policy.
Both initiatives, the spectrum auction and the MVNO policy, reflect Pakistan’s strategic efforts to modernize its telecom infrastructure, drive economic growth, and improve service quality, positioning the country as a competitive player in the global telecom landscape.
