Pakistan moves closer to 5G auction decision
Pakistan is heading to auction 5G amid fears of low response from telecom companies. The telecom companies have been resisting over higher taxes and spectrum fee in dollars.
During the last spectrum auction, three other telecom operators like Jazz, Telenor and Zong had boycotted the auction and did not participate. Ufone was the only company that had participated apparently under pressure of Pakistani government. 5G Spectrum Auction Likely in March 2025
Now, the consultant has prepared a report on 5G auction but still fears exist that higher spectrum fee could derail the efforts of the government to attract investors.
Now. PTCL had acquired Telenor which had emerged as dominated player in telecom market. The insiders say that PTCL subsidiary Ufone could be only company to participate the bidding of 5G auction.
Pakistan’s long-delayed rollout of fifth-generation mobile services has entered a decisive phase. Policymakers prepare to take final calls on spectrum auction rules, pricing and timelines.
The Auction Advisory Committee has decided to brief Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar on policy and regulatory developments.
These development surround the planned 5G spectrum auction. The briefing is expected within days, according to officials familiar with the process.
At the centre of the discussion is the final advisory report prepared by National Economic Research Associates Inc., a US-based consultancy.
The Pakistan Telecommunication Authority had engaged this firm in November 2024. NERA was tasked with designing the framework for Pakistan’s first-ever 5G spectrum auction. This included market structure, spectrum packaging and reserve pricing.
NERA presented its final report to the Auction Advisory Committee, also known as the Spectrum Advisory Committee, on November 15, 2025.
The report contains completing detailed market, technical and economic assessments. Officials said the report provides multiple auction design options keeping in view the Pakistan’s market conditions and international best practices.
Following the submission, now the government has to approve the auction of 5G. It includes auction framework, reserve prices and rollout obligations.
Pakistan has been planning a 5G auction for several years. But repeated delays have kept high-value spectrum unused. Telecom officials estimate that idle spectrum has resulted in significant opportunity costs. The mobile operators struggle to expand capacity and data speeds amid rising demand.
Mobile broadband penetration in Pakistan has grown steadily, which is driven by low-cost smartphones and expanding 4G coverage.
According to the Pakistan Telecommunication Authority’s latest annual report, mobile broadband subscribers have crossed 125 million in 2024. They were fewer than 70 million five years earlier. Data consumption per user has also jumped sharply, putting pressure on existing networks.
The government has been considering 5G as a key enabler for digital services, industrial automation and e-commerce growth.
The Ministry of IT and Telecommunication has linked 5G deployment to broader digital economy targets under its Digital Pakistan policy framework.
According to official plans, the government has proposed a total of 606 megahertz of spectrum for auction across six frequency bands.
These include low-band 700 MHz, mid-band 1800 MHz, 2100 MHz, 2300 MHz and 2600 MHz, and the high-capacity 3500 MHz band. This is globally regarded as the primary 5G band.
The 700 MHz band is considered critical for wide-area coverage, especially in rural and semi-urban regions. Mid-bands may support capacity expansion in dense urban markets. The 3500 MHz band is considered to deliver high-speed 5G services in major cities.
Officials said prolonged disputes over spectrum allocation, pricing and legacy usage have derailed the progress on 5G auction.
Technical disagreements related to the 2600 MHz band had earlier resulted in concerns among stakeholders. But the government has now decided to proceed with the auction in the absence of any court stay order.
Another factor influencing the timing is consolidation within Pakistan’s telecom sector. The Pakistan Telecommunication Authority had granted a No Objection Certificate to PTCL in December 2025 to acquire Telenor Pakistan.
The approval followed Phase II clearance by the Competition Commission of Pakistan which is subject to strict conditions to ensure market competition.
The PTCL–Telenor transaction may reach financial close in early 2026 to reshape the market by reducing the number of mobile operators. Analysts believe that the merger had implications for spectrum caps, auction participation rules and competitive dynamics in the upcoming 5G sale.
Pakistan’s mobile market currently includes Jazz, Zong, Ufone and Telenor. The merger would combine PTCL’s Ufone with Telenor Pakistan. It will emerge as strong a stronger competitor with a larger subscriber base and spectrum holdings.
International experience suggests that poorly structured auctions could burden operators with high upfront costs to slow network investment.
Pakistan’s previous spectrum auctions, including 3G and 4G sales held in 2014 and subsequent years, had generated significant government revenue. But it left operators with limited financial room for rapid rollout.
According to data from the GSM Association, countries with realistic reserve prices with realistic revenue potential had achieved faster 5G deployment. They had also achieved higher long-term economic benefits. The association had been holding briefings in Islamabad with Policymakers in Islamabad to be mindful of these lessons.
Sources said the government has set March as the tentative deadline to hold the 5G spectrum auction. The timeline remains subject to final cabinet approvals, issuance of policy directives and publication of the Information Memorandum.
Industry executives have been pressing the government to chalk out flexible payment options as they are of the view that heavy upfront fees could delay network investment.
Pakistan’s telecom sector has faced decline in average revenues per user in recent years, despite increase in data usage.
According to State Bank of Pakistan data, sector profitability has remained under pressure due to various elements which included high taxes, energy costs and currency depreciation.
The government hopes that 5G deployment would be able to stimulate new revenue streams. They included enterprise services, fintech applications and smart infrastructure projects. Officials argue that timely spectrum release is critical to halt Pakistan from falling further behind regional peers.
Several countries in South Asia and the Middle East have already launched commercial 5G services. They are varying degrees of success. Analysts say Pakistan’s challenge lies in balancing fiscal objectives which required sustainable network investment.
As the Auction Advisory Committee has prepared to brief the prime minister and deputy prime minister, industry stakeholders are closely monitoring signals on pricing discipline and policy certainty.
