Pakistan’s 5G Spectrum Auction Set for March 10, Expected to Generate $300-$700 Million
Islamabad – The Pakistan Telecommunication Authority (PTA) has confirmed that the auction for Next Generation Mobile Services (NGMS)/5G spectrum in Pakistan will be held on March 10, 2026. The announcement follows extensive consultations with stakeholders and regulatory coordination to ensure a transparent and well-participated auction process.[1]
Auction Details and Potential Revenue
The PTA is offering 597 megahertz (MHz) of spectrum in various bands. Three existing telecom operators are mandated to acquire a minimum of 100 MHz each during the auction.[2] PTA officials estimate the auction could generate between $300 million and $700 million for the government.
According to Brigadier Aamir Shahzad, Director General Licensing at the PTA, securing 300 MHz of spectrum, even without competitive bidding, would yield $300 million. A full sale of the 597 MHz at a competitive rate could potentially reach $700 million, though this scenario is considered less likely.[2]
Auction Format and Rollout Timeline
The auction will utilize a multi-round electronic clock auction format, with the primary allocation stage beginning on March 10th. The 2600 MHz and 3500 MHz bands will be offered in the first round.[2]
Following the auction, the rollout of 5G services is expected to take between three and six months, as operators require time to establish the necessary infrastructure for the modern spectrum.[2]
Impact on Service Quality and ARPU
PTA Chairman Hafeezur Rehman stated that the auction is anticipated to improve the quality of service and data speeds for consumers. He highlighted that approximately 50 million new mobile users have been added to the system in the last five years, with only a 10 MHz increase in spectrum during the 2021 auction.[2]
The auction is as well expected to boost the Average Revenue Per User (ARPU) for telecom operators. Rehman noted that ARPU has already risen from $0.7 to $1.3 and is likely to increase further with greater data consumption.[2] The PTA projects mobile broadband speeds to improve by around 25% after the auction.[2]
Government Incentives and Regulatory Reforms
The government has introduced several incentives to encourage telecom companies, including a one-year moratorium on upfront spectrum payments and the option to pay in installments at KIBOR plus three percent.[3] The policy is technology-neutral and aims to facilitate broader telecom sector reforms.
the government has eliminated the right-of-way fee, previously around Rs36,000 per kilometer annually, to promote fiberization projects.[3] Telecom operators have already begun placing orders for 5G equipment, and local manufacturing of 5G-enabled smartphones has commenced, with current production reaching 500,000 to 600,000 units.[2]
Coverage Expansion and Future-Proofing
Operators will be required to expand 5G coverage beyond the initial cities of Islamabad, Karachi, Lahore, Peshawar, and Quetta. The fiber-to-the-site ratio will also increase from 20% to 35% by 2035.[2]
Minimum download speeds for 4G services will be increased from 4 Mbps to 20 Mbps by 2026-27 and to 50 Mbps by 2030-35. For 5G, minimum download speeds will initially be 50 Mbps, rising to 100 Mbps by 2030-35, with latency targets reduced to 35 milliseconds. Upload speeds will be benchmarked at 20% of download speeds for both technologies.[2]
Rehman emphasized that these measures are designed to not only support 5G deployment but also to prepare the country for future technological advancements, such as 6G.[2]
[1] Pakistan Telecommunication Authority
[2] Dawn