This week, Pakistan finally pulled off its 5G spectrum auction. The exercise, which had been delayed for a long time, raised $507 million, with the government selling 480 MHz of spectrum against the targeted 597 MHz. Spectrum politics is a little difficult to explain. It is an invisible yet highly useful commodity. Spectrum relates to the full range of electromagnetic frequencies, of which a portion is used for communications by a variety of services and industries. Mobiles use spectrum to provide voice and data connectivity. Pakistan saw the sale of two out of three lots in the 700 MHz band, all five lots in the 2300 MHz band, all 19 lots in the 2600 MHz band, and 22 out of 28 lots in the 3500 MHz band, bringing the total spectrum sold to 480 MHz. The auction may have handed our major telcos the keys to a 5G future, but there is a big difference between owning frequency and delivering a functional network.
5G requires a massive, coordinated overhaul of backhaul infrastructure. This is where the operational issues come in. Building and powering 5G masts is an eye-watering investment, requiring nearly twice the cost of a 4G setup. Many experts believe the industry underinvests in ground-level hardware once it has secured the airwaves from the government. Ultimately, without a genuine commitment to the boring parts of the network like fibre and power, 5G will remain nothing more than a glorified icon on a smartphone screen. The ball is now in the operators’ court. There is hope that things could be better this time. To its credit, the government did engage with industry insiders to remove the roadblocks that made such investments difficult for the industry. The dollar-based pricing mechanism, especially at a time when the rupee was in a free-fall, for example, was a major deterrent for companies that would then have no financial incentive to carry out large investments.
There are signs that suggest that the industry’s long-standing grievances have been heard. The $507 million raised in this auction is a significant milestone, but its true value will be measured in the stability of the signal in an average person’s hand. The country cannot adopt a 5G-enabled future if operators fail to deliver seamless connectivity. For the past two years, internet users here have been experiencing slow connectivity and frequent outages. These issues will not disappear overnight. We are standing at a critical juncture. Countries are making fast advancements in the digital world, all thanks to their strong infrastructure. Pakistan needs to up its game. Now that the much-awaited spectrum has been awarded, we will wait and see whether ordinary internet users can avail themselves of its benefits.
