5G Auction Goes Live Tomorrow as Pakistan Plans Biggest Spectrum Release Yet

Federal Minister for IT and Telecommunication Shaza Fatima Khawaja said during a recent background briefing that Pakistan has been operating on just 274 MHz of spectrum since 1987.

She stated that 600 MHz of spectrum will be auctioned across the country tomorrow.

The Minister explained that the 5G spectrum auction will be conducted through specialized software, and the auction process will be broadcast live to ensure transparency.

The software that will be used for the 5G spectrum auction is fully secure and a backup system has also been prepared in case any unexpected situation occurs during the auction.

Director General Licensing at PTA, Aamir Shehzad, also briefed participants. He noted that Pakistan last conducted a 3G and 4G spectrum auction in 2013–2014, adding that Pakistan currently has the lowest amount of spectrum among countries in the region.

He said the government has abolished Right of Way charges and that six spectrum bands will be offered in the upcoming 5G auction.

According to the briefing, the mid-band spectrum at 2300 MHz and 2600 MHz is suitable for both 4G and 5G services. Due to quality of service issues, the number of telecom sites across the country has reached 59,000.

Officials said 5G services will initially offer speeds of 50 Mbps.

The government has taken steps to address the issues faced by telecom operators, while a nine-year plan has been prepared for the rollout of 5G services. Under this plan, telecom operators will add 3,000 new sites every year, and improvements in quality of service will be implemented gradually.

PTA has planned a two-stage auction process. In the first stage, spectrum bands will be allocated, while in the second stage, companies will bid for the use of those bands.

Participation in the auction will require operators to bid for the 2600 MHz and 3500 MHz bands. The 2600 MHz band is suitable for both 4G and 5G, while the 3500 MHz spectrum is dedicated for 5G services.

Officials added that five rounds of bidding have been planned for the first day of the auction, though the overall process may continue for one round or multiple rounds depending on bidding activity.

Chairman PTA, Major General (Retired) Hafeez Ur Rehman, said telecom companies have hired their own consultants to participate in the auction.

He added that all telecom companies tested the software during a mock auction, and none of them raised any concerns about the system.

The PTA chairman also clarified that mobile packages will not become more expensive with the introduction of 5G, adding that the regulator will ensure package prices do not increase.

He said PTA has launched a digital assistant to facilitate consumers, noting that the authority receives complaints from mobile users.

Addressing concerns about mobile phone taxation, he clarified that tax on mobile phones is not imposed by PTA, and added that no one at PTA knows how much tax applies to a specific mobile phone model.

Revenue Expectations and Purpose of the 5G Auction

The PTA chairman said it is not yet determined how much revenue will be generated from the 5G spectrum auction.

He emphasized that the government’s objective is not to collect money, but rather to improve connectivity across the country.

Shaza Fatima also said the purpose of the auction is to provide better services to citizens and move Pakistan forward in the digital world. She added that the internet has now become the foundation of the economy, security, and social life.

He noted that quality of service issues are more common in rural areas due to fewer telecom towers. To address this, PTA has introduced new mechanisms to ensure service quality for consumers.

He added that the regulator is now monitoring network quality at the Union Council level.

Responding to public complaints that mobile networks stop working during power outages, he said that since PTA pays for network towers, electricity disruptions should not affect service availability.

Spectrum Pricing

Shaza Fatima said the government designed the auction framework according to international best practices.

She explained that selling spectrum at excessively high prices would defeat the purpose, comparing it to selling a plot so expensive that no one can build on it.

She added that if the spectrum remains unused after being purchased, it can result in losses of $3 billion to $4 billion.

Using another analogy, she said killing the hen that lays golden eggs would provide no long-term benefit, adding that the government has tried to protect the long-term value of the telecom sector.

She also noted that in some wealthy countries spectrum is provided free of cost, and the government’s goal is to auction spectrum at the lowest possible cost while still ensuring deployment of services.

The Spectrum Advisory Committee, headed by the finance minister, determined the auction mechanism after consultations.