The Pakistan Telecommunication Authority (PTA) has introduced a new plan that ties telecom companies’ network expansion to financial guarantees worth $15 million.
Under this plan, each telecom company must submit four separate bank guarantees, each worth $3.75 million. Each guarantee covers one phase of network expansion. If a company completes its work on time, the guarantee is returned. If it fails to meet its targets, part of the money can be taken by the regulator.
Better Coverage Required
One phase of the plan, spread over nine years, requires telecom companies to install at least 1,000 mobile sites every year. At least 20 percent of these sites must be built in new areas where mobile coverage is currently weak.
These new sites can use any frequency assigned to the operator, but each site will only be counted once toward meeting the requirement.
Rules for 4G and 5G Expansion
The PTA has also set rules to ensure mobile services improve across the entire country. Companies must install 4G sites in both cities and rural areas in every province, rather than focusing only on major urban centres.
For 5G, operators must expand service to 15 more cities, including at least two cities from each province. In those cities, 10 percent of existing 4G towers must be upgraded to 5G every year.
Fiber and Priority Areas
The regulator has required that 35 percent of all mobile towers be connected through fiber-optic cables to improve network quality. Companies must also focus on improving coverage along motorways and at airports.
If a company fails to meet its targets in one phase, the missed work will be added to the requirements of the next phase.
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