On Tuesday, Pakistan took a significant leap forward in its digital transformation journey by officially commencing the auction for 5G spectrum. This event marks a pivotal moment in the country’s efforts to enhance its telecommunications infrastructure and provide faster, more reliable internet services to its citizens. The auction ceremony was graced by prominent government figures, including Finance Minister Muhammad Aurangzeb, Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, and Information Minister Attaullah Tarar, alongside the chairman of the Pakistan Telecommunication Authority (PTA).
Three major telecom operators, having met the necessary qualifications, are actively participating in this competitive bidding process. The PTA has made approximately 600 megahertz of spectrum available for auction, a crucial resource that will enable the rollout of 5G services across the country. This spectrum allocation is part of a broader strategy aimed at accelerating Pakistan’s digital economy and improving connectivity nationwide.
The initial phase of the auction has now concluded, with the Director General Licensing revealing that 190 MHz of spectrum in the 2600 MHz band was offered for bids. The demand from telecom companies surpassed the available supply, with an additional 110 MHz requested beyond what was initially offered. This heightened interest has led to a 5 percent increase in spectrum pricing for the upcoming second phase of the auction. Furthermore, the 3.5 GHz band, which included around 280 MHz of spectrum, was also made available during the first phase, attracting demand for 200 MHz.
At the inauguration ceremony, IT Minister Shaza Fatima Khawaja emphasized the historic nature of this auction, underscoring its potential to revolutionize digital connectivity in Pakistan. She highlighted that while the country has witnessed several technological advancements over the years, the current phase of digital transformation is particularly crucial. The minister acknowledged the collaborative efforts of various institutions that worked tirelessly to prepare the spectrum for auction, signaling a collective commitment to usher Pakistan into the next generation of telecommunications technology.
Minister Khawaja also reflected on Pakistan’s previous milestones in mobile technology, recalling the introduction of 3G and 4G networks during the tenure of former Prime Minister Nawaz Sharif between 2014 and 2016. Since then, the absence of major spectrum auctions has contributed to challenges related to internet quality and user experience. She pointed out that the current auction will not only facilitate the introduction of 5G but also enhance the capacity and performance of existing 4G networks, ensuring faster and more reliable internet access for users.
Highlighting the growing importance of digital connectivity, the minister noted that fast, dependable, and affordable internet has become an essential service for citizens, impacting various sectors such as the economy, agriculture, industry, and national security. To support this expansion, the government has removed right-of-way charges for telecom infrastructure, a move designed to accelerate the deployment of fiber optic networks across Pakistan. A comprehensive national fiberisation plan is also in the pipeline, aiming to assist telecom companies in expanding their infrastructure once they acquire the necessary spectrum.
The auction framework was meticulously developed through consultations with multiple stakeholders, including the Spectrum Advisory Committee, the Ministry of Finance, the PTA, and the Frequency Allocation Board. This collaborative approach has earned positive recognition from international telecom organizations, with favorable feedback shared during discussions at the Mobile World Congress. Minister Khawaja assured that improvements in 4G services would become noticeable within four to five months following the auction, while 5G services are expected to launch initially in Islamabad and provincial capitals within five to six months.
She also paid tribute to the contributions of former IT Minister Aminul Haq, various government bodies, and the armed forces for their roles in making the spectrum available for commercial use, emphasizing that these efforts were undertaken in the national interest. The minister framed this progress as part of Prime Minister Shehbaz Sharif’s broader “Digital Nation Pakistan” vision, which seeks to promote digitization, provide technology training to youth, boost IT exports, and foster a cashless economy.
PTA Chairman Hafeez Ur Rehman expressed his gratitude to all institutions involved in making the auction possible, acknowledging that securing the necessary spectrum had been one of the most significant challenges. He highlighted the close cooperation between the PTA and the Frequency Allocation Board in ensuring spectrum availability. Describing 5G as a “digital highway” and the driving force behind Pakistan’s future technological advancements, he declared that the auction day signified the dawn of a new era for the country’s telecom sector.
Moreover, the PTA chairman noted a landmark achievement: Pakistan has become the first country in Asia to eliminate Right of Way charges, reducing them from Rs36,000 per kilometre to zero. This bold policy change is expected to facilitate the rapid expansion of telecom infrastructure nationwide. He concluded by stating that the government has taken all necessary measures to support the telecom industry, and now it is incumbent upon the telecom operators to actively engage in the spectrum auction and drive Pakistan’s digital progress forward.
