Pakistan’s 5G Auction Delayed Again as Spectrum Pricing Deadlock Deepens
Pakistan’s long-awaited 5G rollout has been pushed further back as the federal government remains stuck in a policy deadlock over spectrum pricing. With no consensus on reserve prices, officials are now targeting early 2026 for the 5G spectrum auction, even as mobile service quality continues to decline across the country.
Spectrum Pricing Dispute Delays 5G Rollout
The core issue facing policymakers is how to price spectrum without harming the telecom sector. High reserve prices could discourage mobile operators from participating, while lower prices—despite recommendations from international consultants—risk political and regulatory scrutiny. This unresolved tension has repeatedly delayed the auction process.
Inconclusive Spectrum Advisory Committee Meeting
These concerns dominated the latest meeting of the Spectrum Advisory Committee (SAC), chaired by Finance and Revenue Minister Muhammad Aurangzeb. The session included the IT and Telecom Minister, the Pakistan Telecommunication Authority (PTA) chairman, and other stakeholders, but ended without a firm decision on pricing or auction timelines.
Mobile Service Quality Worsens Nationwide
While policy uncertainty continues, mobile users face declining service quality. Dropped calls, slow data speeds, and network congestion are becoming more common. Despite rising demand, nearly 600 MHz of spectrum remains idle, with only 274 MHz currently serving close to 200 million subscribers—placing intense pressure on existing networks.
Consultant Warns Against High Spectrum Reserve Prices
The government’s consultant, National Economic Research Associates (NERA), has cautioned that excessive reserve prices could reduce competition, discourage investment, and delay innovation. NERA stressed that lower prices can deliver higher long-term government revenue by enabling sector growth, wider usage, and increased tax income.
The consultant also recommended extended payment terms and incentives for the 3.5 GHz band, which is exclusively used for 5G services. Similar flexible models have helped accelerate 5G deployment in regional markets such as Bangladesh, Indonesia, and Vietnam.
Structural and Economic Barriers to Spectrum Allocation
Pakistan’s spectrum challenges are rooted in delayed auctions, restrictive conditions, and dollar-pegged pricing. Since the last auction in 2021, currency depreciation has sharply increased costs for operators. Past auction designs also left large portions of spectrum unsold, slowing 4G adoption and limiting network expansion.
Economic Cost of Further 5G Delays
Industry bodies warn that continued delays could significantly impact the economy. Estimates suggest that a two-year delay in spectrum release could reduce GDP by $1.8 billion between 2025 and 2030, with losses rising sharply if delays extend further.
What’s Next for Pakistan’s 5G Auction?
Briefings for the Deputy Prime Minister and Prime Minister are expected to shape final decisions on reserve prices, payment terms, and the release of idle spectrum. While the 5G auction could still be a turning point, further delays may push meaningful improvements in mobile connectivity well beyond 2026.
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