Pakistan moves closer to launching 5G as government approves spectrum auction

Pakistan is moving closer to launching fifth-generation mobile services after the federal government issued a policy directive paving the way for a 5G spectrum auction, targeted for mid-February, officials said.

The move comes amid rapid growth in mobile broadband usage, with the number of subscribers surpassing 152 million. This growth has been driven by accelerated digital transformation under the government’s “Digital Nation Pakistan” vision.

Auction plan

Under the directive, the Pakistan Telecommunication Authority has been instructed to conduct a transparent and competitive auction of radio frequency spectrum across six bands — 700 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2600 MHz, and 3500 MHz — to meet growing demand for high-speed mobile broadband.

Pakistan Telecommunication Authority to hold a transparent, competitive auction for radio frequency spectrum across six bands.Nukta

The federal government emphasized that radio spectrum, a scarce and valuable national resource, must be used in the public interest and in line with Pakistan’s international obligations governing radio communications, including standards for International Mobile Telecommunications and next-generation technologies.

Previous spectrum auctions for next-generation mobile services were held in 2014, 2016, 2017, and 2021, assigning paired spectrum in the 850 MHz, 1800 MHz, and 2100 MHz bands to cellular operators.

According to the directive, the PTA will auction 15 MHz of paired spectrum in the 700 MHz band; 3.6 MHz paired in the 1800 MHz band; 20 MHz paired in the 2100 MHz band; 50 MHz unpaired in the 2300 MHz band; 190 MHz unpaired in the 2600 MHz band; and 280 MHz unpaired in the 3500 MHz band.

Both existing operators and new entrants will be eligible to participate, subject to spectrum caps. These include an overall cap of 40% of total spectrum available, a low-band cap of 55 MHz across the 700, 850, and 900 MHz bands, and band-specific caps of 140 MHz in the 2600 MHz band and 200 MHz in the 3500 MHz band.

Base prices and licensing

The government has set base prices, including $6.5 million per MHz for paired spectrum in the 700 MHz band; $14 million per MHz for paired spectrum in both the 1800 MHz and 2100 MHz bands; $1 million per MHz for unpaired spectrum in the 2300 MHz band; $1.25 million per MHz in the 2600 MHz band; and $650,000 per MHz in the 3500 MHz band.

Spectrum fees will be payable in Pakistani rupees, with the U.S. dollar conversion rate fixed using the National Bank of Pakistan’s TT selling rate the day before the auction.

The spectrum will be technology-neutral, allowing its use for all existing and future mobile technologies. Successful bidders will be granted new licenses valid for 15 years, with provisions allowing spectrum trading and sharing.

Network rollout

License conditions will include mandatory phased network rollout obligations, covering targets for cities, sites, and fiber-to-tower deployment. Stricter quality-of-service requirements will aim to improve the consumer experience.

Following the directive, the PTA is expected to release an Information Memorandum detailing the auction procedure, eligibility criteria, and participation steps. The auction will then be conducted within a minimum reasonable timeframe.