According to sources, the federal government is currently facing a complex situation regarding spectrum pricing. On one hand, setting higher reserve prices could reduce telecom operators’ interest in the auction, while on the other, keeping prices low may invite strict scrutiny and comparisons with past auctions. This tug of war has become one of the major reasons behind the delay in the 5G spectrum auction process.
During the Spectrum Advisory Committee meeting held recently, no final decision could be reached regarding the 5G spectrum auction. Sources indicate that the government is now targeting the first quarter of 2026 for the auction. The meeting was chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb and attended by the Federal Minister for Information Technology and Telecommunications, the Chairman of the Pakistan Telecommunication Authority (PTA), and other relevant officials.
Sources said that in light of growing public concern over the declining quality of mobile services, officials briefed the meeting on auction preparations, available spectrum, and the current market situation. Authorities informed that around 600 MHz of spectrum is currently lying unused, while only 274 MHz of spectrum is serving nearly 200 million users. This imbalance has led to increasing issues such as call drops, slow internet speeds, and network congestion.
According to sources, the US-based consultancy firm National Economic Research Associates Incorporated (NERA), appointed by the government for the 5G spectrum auction, warned in its report that higher spectrum prices could result in reduced competition, slower innovation, and more expensive services for consumers. The report noted that lower prices could generate higher government revenues in the long run. The consultant also recommended extending payment tenures, offering additional incentives for the 3.5 GHz band, and adopting examples from regional countries such as Vietnam, Indonesia, and Bangladesh.
The report further highlighted that in Pakistan’s past auctions, high reserve prices, dollar-linked rates, stringent commercial terms, and delays resulted in spectrum remaining unsold. According to GSMA, if spectrum remains unsold in the upcoming auction, the economy could suffer losses of up to $1.8 billion between 2025 and 2030. In the case of a five-year delay, this loss could rise to $4.3 billion.
Sources added that today (Wednesday) a briefing will be given to the Deputy Prime Minister, followed by a briefing to the Prime Minister the next day. Key decisions regarding timelines, reserve prices, and the release of unused spectrum are expected in the coming days—decisions that will determine whether consumers experience improved services or continued difficulties.
