Telecom Companies Tell PTA Current 5G Auction Plan Is Financially Unviable

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Telecom operators in Pakistan have raised concerns over the commercial viability of the Pakistan Telecommunication Authority’s 5G spectrum auction framework, stating that the current Information Memorandum would require each operator to invest around $150 million annually in network infrastructure, in addition to spectrum costs. The PTA issued this memorandum following a federal government directive to launch 5G services nationwide.

Operators highlighted that the plan mandates deploying at least 1,000 new cell sites per year, translating into $150–200 million in yearly infrastructure investment for each operator over the next five years. They argue this level of spending is excessive given Pakistan’s current market conditions and have requested revisions to make the rollout financially feasible.

The proposed 5G rollout is planned in phases, starting with Islamabad and the four provincial capitals, with tightened quality-of-service standards. Minimum 4G speeds have been raised from 4 Mbps to 20 Mbps, fixed broadband minimum speeds from 4 Mbps to 10 Mbps within a year, and minimum 5G speeds set at 50 Mbps.

Operators also warned that the framework does not account for existing financial pressures, including low tariffs, high taxes, rising energy costs, and rupee depreciation. PTA intends to auction 597.2 MHz of spectrum across six frequency bands and has invited industry feedback. The final Information Memorandum will reflect stakeholder input, with the 5G auction to follow.


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