Pakistan’s 5G future: Are we ready for the leap in 2025?

Pakistan is gearing up for the rollout of 5G technology in 2025, with the Pakistan Telecommunication Authority (PTA) set to auction licenses in April. However, experts and telecom operators question whether the country is equipped to harness the transformative potential of 5G.

The PTA has hired an international consultancy to assess the market and prepare for the spectrum auction. According to officials, both 5G and additional spectrum for 4G and LTE services will be offered. While the groundwork appears ready, telecom operators and analysts cite significant challenges.

Barriers to 5G adoption

One major hurdle is the affordability of 5G-enabled devices. Less than 1% of handsets in Pakistan currently support 5G, with average prices exceeding PKR 110,000, making them inaccessible for most households. Additionally, only 22% of Pakistan's population subscribes to mobile internet services, despite nearly 80% living in areas with 3G or 4G coverage.

"Introducing 5G without addressing these foundational issues risks turning it into another missed opportunity for Pakistan," telecom experts said.

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Economic constraints further complicate the rollout. The depreciation of the Pakistani rupee has doubled the cost of spectrum acquisition and infrastructure imports. Rising energy costs and limited access to affordable capital are squeezing operators’ ability to invest in next-generation technology.

Low revenue and digital divide

Pakistan’s telecom sector struggles with the world’s lowest average revenue per user (ARPU) at USD 0.90. High inflation and low purchasing power exacerbate the problem, with 40% of the population living below the poverty line.

The digital divide remains stark, with 57% of Pakistanis lacking mobile broadband and 15% having no connectivity at all. "Why invest billions in 5G when most of the population can’t even afford basic 4G?" experts questioned.

Infrastructure readiness

For 5G to deliver on its promise of high speeds and low latency, robust backhaul infrastructure is essential. PTA has focused on upgrading backhaul networks, allocating suitable frequency bands and facilitating trials. However, widespread fiber connectivity and easier rights-of-way are critical to expanding network capacity.

Policy and future outlook

Telecom operators argue that spectrum pricing should reflect market realities. High spectrum fees could drain resources better spent on improving existing 4G services and bridging the digital divide.

Despite the challenges, PTA officials remain optimistic. "The preparations on the ground are complete. Operators are ready to acquire spectrum based on their needs," a PTA representative said.

Telecom analysts stress the need for a comprehensive, forward-thinking policy to ensure 5G benefits reach all Pakistanis. "5G can foster economic growth and technological advancement, but only if we address these barriers and prioritize equitable access," they said.

As Pakistan approaches its 2025 spectrum auction, the question remains: will 5G be a game-changer or another unfulfilled promise?