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Pakistan completes 5G spectrum auction, set to launch next-gen services

PTA chairman says $510m generated from phased auction of Next Generation Mobile Services spectrum

ISLAMABAD: Pakistan generated $510 million (Rs142.6 billion) from the landmark auction of Next Generation Mobile Services (NGMS) spectrum, while the telecom regulator on Thursday completed the position assignment auction to determine the exact placement of 5G spectrum blocks acquired by operators.

The announcement was made by Pakistan Telecommunication Authority (PTA) Chairman Hafeez Ur Rehman during a press briefing alongside Minister for Information Technology and Telecommunication Shaza Fatima Khawaja following the completion of the multi-band spectrum auction process.
He said that 480 MHz of spectrum was sold during the bidding held on March 10, generating $507 million in revenue, equivalent to about Rs142 billion for the national exchequer.

The position assignment held today generated an additional $3 million following multiple rounds of bidding, bringing the total proceeds to $510 million (Rs142.6 billion).

Describing it as one of the largest spectrum sales globally in terms of volume, the PTA chief said the government had fulfilled its responsibility by conducting the auction, and it was now the telecom operators’ turn to transform the spectrum into improved services for consumers.

The position assignment stage allowed operators to determine the precise placement of the spectrum blocks they had secured.

The process covered the 2600 MHz and 3500 MHz bands, with operators bidding for lower, middle, and upper block positions to optimise network performance and minimise interference between networks.

No assignment process was required for the 700 MHz band, which was secured solely by a major telecom operator during the auction.

Speaking on the occasion, Shaza Fatima Khawaja, Minister for Information Technology and Telecommunication, said the successful completion of the auction was made possible by the difficult decisions taken by the government led by Prime Minister Shehbaz Sharif.

She said several countries had inquired about Pakistan’s 5G plans during the Mobile World Congress, reflecting growing international interest in the country’s digital transformation.

The minister credited the coordinated efforts of the PTA, the Frequency Allocation Board, and other institutions for making the auction possible, while also acknowledging the armed forces for cooperating in vacating the spectrum required for the process.

She informed that 5G pilot projects will begin in major cities next week, with commercial rollout expected in the coming months.

“The Internet has become a basic necessity for Pakistan,” she said.

The minister further added that, under the prime minister’s directive, the government is finalising a smartphone leasing policy to improve access to smart devices.

She reiterated that the Ministry of IT and the PTA have consistently advocated reducing taxes on mobile services and devices, though such taxes fall under the jurisdiction of the Federal Board of Revenue.

Responding to a question, the PTA chairman added that mobile packages had increased by only 10-15% over the past three years despite rising operational costs, assuring that the 5G rollout would not result in higher package prices.

He said the deployment of new spectrum would significantly enhance connectivity, with average internet speeds expected to increase from around 4 Mbps to nearly 20 Mbps. APP

 

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