- Experts caution that rolling out advanced networks without device readiness may repeat past mismatches where infrastructure outpaced user uptake
As Pakistan moves closer to its first 5G spectrum auction, telecom industry stakeholders caution that limited availability of compatible devices could sharply constrain the technology’s uptake, raising the risk that 5G benefits only a small segment of users rather than the broader population.
Industry estimates suggest that fewer than three million 5G-enabled smartphones are currently in use across the country, representing a marginal share of Pakistan’s overall mobile subscriber base. Without a rapid expansion in affordable handset availability, analysts warn that 5G adoption may remain confined to higher-income users, widening rather than narrowing the digital divide.
The problem is exacerbated by the absence of local assembly for 5G devices. While domestic manufacturing has helped lower the cost of 4G smartphones over time, all 5G handsets are currently imported. This keeps prices elevated due to customs duties, currency depreciation and global supply-chain costs, placing most 5G devices beyond the reach of average consumers.
Industry experts caution that rolling out advanced networks without sufficient device readiness could repeat earlier mismatches, where infrastructure investments outpaced user adoption. They argue that handset affordability, incentives for local assembly and network deployment need to progress together if 5G is to deliver meaningful economic and social benefits.
Concerns have also been raised over the proposed structure of the upcoming spectrum auction. Stakeholders warn that high reserve prices and foreign-currency-denominated fees could divert operator capital away from network expansion and coverage improvement, slowing overall deployment.
Telecom operators generate revenues primarily in Pakistani rupees and operate in a price-sensitive market. Exposure to foreign-currency obligations, industry representatives say, increases financial risk and limits the sector’s ability to invest at scale. Aligning spectrum pricing and payment terms with domestic economic conditions is seen as critical to supporting affordability and faster rollout.
Drawing parallels with recent reform experiences, industry voices argue that prioritising long-term sector viability over short-term fiscal gains could prove decisive. As Pakistan finalises its 5G auction framework, stakeholders stress that success should be measured by widespread adoption and economic impact rather than headline auction proceeds alone.
Industry representatives maintain that a phased approach, linking spectrum policy, device availability and deployment objectives, will determine whether 5G becomes a mass-market technology or remains accessible to only a limited segment of users.
