The Pakistani government is intensifying its preparations for the long-awaited 5G spectrum auction. The Spectrum Auction Advisory Committee, led by Finance Minister Aurangzeb, recently met with telecom operators and a delegation from the GSM Association (GSMA) in Islamabad to discuss the framework of the upcoming 5G auction.
Industry Concerns and Economic Stakes
Telecom operators submitted proposals that highlighted the high cost of spectrum and heavy taxation as major barriers to a successful 5G network rollout. They warned that if these pricing issues aren’t resolved, Pakistan risks a slower adoption of 5G technology, which would hinder its digital transformation goals.
Julian Gorman, the GSMA’s Asia Pacific Head, noted that delays in releasing the spectrum could result in Pakistan losing an estimated $1.8 billion to $4.3 billion in economic benefits over the next five years. He cautioned that Pakistan’s spectrum costs are among the highest globally, consuming nearly 20% of telecom operators’ revenue. This, in turn, affects network coverage and internet speeds for consumers.
A Call for Key Reforms
Gorman stressed that an effective spectrum policy is essential to realizing the “dream of a Digital Pakistan.” He urged the government to adopt a new auction design that includes several key reforms:
- Lower reserve prices for spectrum.
- Reduced taxes on the telecom sector.
- Greater flexibility in payment structures.
- The option to pay spectrum fees in local currency instead of US dollars.
Government’s Response
Finance Minister Aurangzeb assured the operators that their concerns would be carefully reviewed before the final auction policy is approved. Although the government has not yet announced a timeline for the 5G rollout, officials have consistently linked the project to Pakistan’s broader agenda for digital transformation.
