Pakistan's 5G spectrum auction on March 10, expected to raise $700 million, boost internet speed up to 25 times

Pakistan's upcoming spectrum auction, scheduled for March 10, is expected to generate between $300 million and $700 million for the national treasury while significantly improving internet speeds. The auction will pave the way for the launch of 5G, increasing speeds up to 25 times faster, while also enhancing 4G speeds by five times.

Chairman of the Pakistan Telecommunication Authority (PTA), Maj-Gen (retd) Hafeez Ur Rehman, and DG Licensing Brig (retd) Aamir Shahzad briefed the media, revealing that the auction will offer 597 MHz of spectrum in various bands. Telecom operators will be required to secure at least 100 MHz. 

According to Shahzad, the government is expected to earn $300 million if the 300 MHz spectrum is acquired without competitive bidding, with total earnings potentially reaching $700 million.

This auction will be technology-neutral, allowing telecom operators to choose the best options for their needs. Rehman also highlighted that the cost of the Right of Way (ROW) has been reduced from Rs26,000 per kilometer to zero, a move designed to accelerate fiber network installation across the country.

The auction will be conducted using a multi-round electronic clock format, with the first round offering 2600 MHz and 3500 MHz bands. Following the auction, the rollout of 5G services will take 3 to 6 months, due to infrastructure installation requirements.

Rehman noted that over the past five years, 50 million new mobile users have joined the network, but only 10 MHz was added in the 2021 spectrum auction. He added that the improvement in data services and expanded coverage will also help increase the Average Revenue Per User (ARPU), a key indicator for telecom performance. ARPU has already risen from $0.7 to $1.3, and is expected to grow further as data consumption increases.

The auction is expected to significantly improve mobile broadband speeds, with the PTA forecasting a 25% increase in mobile broadband speeds following the auction. Telecom operators have already placed orders for 5G equipment, and local manufacturing of 5G-enabled smartphones has begun, with 500,000 to 600,000 units produced so far.

In terms of infrastructure expansion, 5G coverage will extend beyond major cities like Islamabad, Karachi, Lahore, Peshawar, and Quetta, with plans to increase the fiber-to-the-site (FTTS) ratio from 20% to 35% by 2035.

The minimum download speed for 4G services will rise from 4 Mbps to 20 Mbps by 2026-27, reaching 50 Mbps by 2030-35. For 5G, initial minimum download speeds will start at 50 Mbps and reach 100 Mbps by 2030-35, with latency targets set at 35 milliseconds. Upload speeds will be benchmarked at 20% of download speeds for both technologies, resulting in a fivefold increase in 4G speeds and a 25-fold increase in 5G speeds in areas where the services are launched.