2025 was meant to be 5G’s year in Pakistan—will it be?

The federal government’s commitment to launching 5G services in Pakistan by April 2025 remains unfulfilled as court cases and unresolved commercial mergers obstruct the spectrum auction process, according to documents reviewed by Nukta.

A U.S.-based international consultant, National Economic Research Associates (NERA), which is advising the Pakistan Telecommunication Authority (PTA) on spectrum auction and policy reforms, has raised serious concerns about three key litigations and the pending Telenor-Ufone merger as major impediments to the 5G rollout.

The PTA had earlier announced that the 5G spectrum auction would be held before April 2025, but no such auction has taken place. The NERA report, currently in the finalization stage, identifies ongoing court proceedings and regulatory delays as the primary challenges.

Legal hurdles

According to the document, NERA has stated that 140 MHz of the 2600 MHz band—considered the prime frequency band for 5G—remains under litigation. Only 54 MHz is available out of a total 194 MHz in the band. The litigation involves Southern Networks Ltd (SNL) and is pending in both the Supreme Court of Pakistan and the Sindh Civil-District Court in Karachi.

The consultant’s document warns that these prolonged and unresolved legal proceedings threaten the overall auction timeline and the success of Pakistan’s 5G transition. NERA recommends a “swift, litigation-free release” of this band.

In the 2100 MHz band, CMPak (Zong) is contesting the allocation of a 5 MHz paired spectrum in the Sindh High Court. Though the Islamabad High Court (IHC) and the Ministry of IT and Telecommunication (MoIT&T) have already decided the matter in favor of the Government of Pakistan (GoP), the legal proceedings continue.

In another case, CMPak (Zong) has also challenged a decision involving 6.6 MHz of paired spectrum in the 1800 MHz band in the Supreme Court. The IHC had ruled in favor of the PTA on August 21, 2024, but CMPak has taken the case to the Supreme Court.

The PTA has stated that these legal cases, particularly those involving the 2600 MHz band, are hindering efforts to provide a level playing field for all operators in the upcoming auction.

Telenor-Ufone merger a complicating factor

NERA has also advised that the acquisition of Telenor by PTCL’s Ufone must be completed before final policy recommendations are submitted to the government. According to the consultant, the outcome of this merger directly affects competition and the structure of participation in the spectrum auction.

Chairman PTA Major General (retd) Hafeezur Rehman informed the National Assembly Standing Committee on Cabinet Secretariat that the merger, along with litigation, are among four major obstacles preventing the 5G spectrum auction.

He also stated that an advisory committee was formed under the chairmanship of the finance minister to oversee the auction process, and that NERA’s report would be presented in the committee’s next meeting.

PTA’s response

The PTA has formally approached the advisory committee, the cabinet, the office of the Attorney General for Pakistan (AGP), the Ministry of Law and Justice (MoL&J), and MoIT&T to resolve the legal issues affecting the auction.

The PTA has also highlighted that, as of November 6, 2023, a spectrum auction advisory committee was constituted. Following this, the Frequency Allocation Board (FAB) identified 567 MHz of additional spectrum across the 700, 1800, 2100, 2300, 2600, and 3500 MHz bands—an increase of nearly 200% over existing spectrum.

The PTA says that once NERA presents its final report to the advisory committee, the committee will issue policy directions covering spectrum auction design, 5G rollout plans, coverage and quality of service (QoS) targets, and implementation timelines.

Government response

Responding to a question regarding 5G services, Minister for Information Technology and Telecommunication Shaza Fatima Khawaja stated that the upcoming auction will focus on improving digital infrastructure rather than maximizing government revenue.

She confirmed that PTA hired NERA with the goal of developing a strategy for maximizing spectrum availability to support next-generation broadband services.

According to Khawaja, NERA’s work includes an evaluation of spectrum pricing, taking into account international trends, the financial health of the telecom sector, and lessons from previous auctions.

She further said that the consultant will recommend pricing strategies that promote economic growth and attract foreign investment, while also ensuring the spectrum remains affordable for service providers. The auction will be designed to support both 4G and 5G rollouts, and the licenses issued afterward will include specific rollout obligations based on international standards.

Khawaja added that global best practices, stakeholder consultations, and regional comparisons are all part of the consultant’s mandate. She also noted that it is common for spectrum to remain unsold in auctions worldwide.

In the same Standing Committee meeting, PTA Chairman Hafeezur Rehman said that some legal disputes are decades old, including one case that has been pending in the Sindh High Court for 30 years.

Secretary Cabinet Division Kamran Ali Afzal told the committee that in one instance, PEMRA issued a broadcast license on a frequency band not allocated by FAB, contributing to confusion in the spectrum landscape.

The Ministry of IT and PTA had earlier assured the Standing Committee on IT and Telecom in August 2024 that 5G spectrum auctions and rollout would be completed by April 2025.