Govt Finalizes Plan for 5G Rollout in Major Cities

The government has prepared a plan to roll out 5G services in major cities within the next six to seven months, while deciding to keep spectrum prices low to encourage industry participation.

Federal Minister for Information Technology and Telecommunication Shaza Fatima said the government wants telecom companies to invest heavily in 5G infrastructure rather than face an excessive financial burden at the auction stage.

She stated that the government’s objective is to ensure that once the spectrum auction takes place, effective on-ground visibility of 5G services is achieved within four months.

According to the minister, the current structure of the telecom sector includes heavy taxation, which has added to the financial stress faced by operators.

Highlighting economic challenges, Shaza Fatima recalled that during the 2014 spectrum auction, the dollar was valued at around Rs. 100, whereas today its price has increased nearly threefold. She noted that while operational costs in the telecom sector have risen sharply, revenues have not grown at the same pace.

She further pointed out that Pakistan’s average revenue per user (ARPU) is the lowest compared to other countries in the region. This imbalance, she said, has limited the sector’s capacity to expand networks and adopt new technologies at the desired speed.

Referring to regional examples, the minister said Sri Lanka has already launched 5G with a focus on growth rather than high upfront spectrum costs. She added that, except for Bangladesh, spectrum prices around the world are not denominated in dollars, and Bangladesh had frozen its spectrum prices against the dollar.

The government, she said, will consider industry demand in the upcoming 5G auction, while efforts are underway to get the MVNO framework approved by the cabinet before the 5G launch, as early rollout of 5G remains a government priority.