ISLAMABAD: The federal government has concluded the spectrum auction for the rollout of 5G services, with all three cellular operators participating after the government accepted key demands aimed at easing their financial burden.
As per Minister for IT and Telecom Shaza Fatima the major demands of the telecom operators had been accepted, which would help reduce their financial burden.
The government, as per sources, is expected to generate approximately $300 million to $700 million through the spectrum auction.
There will be different rounds of bidding, which may continue for further several rounds, an official said.
A 274 megahertz (MHz) of spectrum had been running the entire system in the country, leading to network congestion, the minister said, adding that the priority of the government was to enhance both the quality and coverage of 4G, while 5G coverage will also commence after the auction.
The government, she said, is offering 600 MHz of spectrum, and four new bands have been introduced in the current auction process, while the telecos are bound to acquire at least 100 MHz each. "With a minimum of 300 MHz to be acquired by the telecos, the availability of spectrum in the system will be doubled," she added.
In order to ensure that all three telecom operators enter the 5G service, the spectrum auction policy has made it mandatory for the participants to acquire the 3500 MHz and 2600 MHz bands, as these are essential to operate the 5G service.
The 700 MHz band has also been offered for the first time. It is essential for long-distance coverage and will help provide basic telephony services in populated areas.
Speaking at the opening ceremony for the Spectrum Auction for Next Generation Mobile Services (NGMS)/5G, IT Minister Fatima stressed that Pakistan entered the 3G and 4G era between 2014 and 2016 and since then no major spectrum auction has been held, which has caused problems with internet quality and user experience.
The IT minister noted that the auction would not only introduce 5G services but also improve the quality and capacity of existing 4G networks.
Highlighting that fast, reliable and affordable internet had become a basic need for citizens, she added that digital connectivity now played an important role in sectors such as the economy, agriculture, industry and national security.
Furthermore, she pointed out that the government had also removed right-of-way charges for telecom infrastructure to speed up the expansion of fibre networks across the country and that the government had also removed right-of-way charges for telecom infrastructure to speed up the expansion of fiber networks across the country.
A national fibreisation plan would soon be launched to help telecom companies expand their infrastructure after acquiring spectrum, remarked Fatima.
Stressing that the auction framework was prepared after consultations with several institutions, including the Spectrum Advisory Committee, the Ministry of Finance, the Pakistan Telecommunication Authority and the Frequency Allocation Board, the IT minister noted that people would start seeing improvement in 4G services within four to five months after the auction, while 5G services would first be launched in Islamabad and provincial capitals within five to six months.
Finance Minister Muhammad Aurangzeb also addressed the ceremony and described the spectrum auction as a historic milestone that will accelerate Pakistan’s digital transformation and strengthen the country’s digital economy.
He noted that the Spectrum Committee, which he chaired, carried out detailed deliberations to develop a balanced framework aimed at optimising revenue while simultaneously fostering an enabling ecosystem to advance Pakistan’s digital journey.
The finance minister also emphasised that digital development was not an end in itself but a means to achieve broader economic and social progress and that improved digital connectivity would deliver faster, cheaper and better services, unlocking numerous opportunities across various sectors of the economy.
Addressing the auction's significance and impact, Aurangzeb said that greater spectrum availability and the rollout of 5G services would also facilitate emerging technologies such as artificial intelligence, blockchain and Web 3.0, helping Pakistan transition towards a modern digital economy.
Meanwhile, speaking on the occasion, PTA Chairman Hafeez Ur Rehman said the long-awaited day had finally arrived. He thanked all institutions that helped make the spectrum auction possible and said the availability of spectrum had been the biggest challenge.
He said the PTA and the Frequency Allocation Board worked closely to ensure the spectrum was made available, adding that 5G services would bring modern internet facilities to remote areas.
Calling 5G a "digital highway" and the engine of Pakistan’s future, he said the day marked the start of a new technological era.
He also said Pakistan had become the first country in Asia to abolish Right of Way charges, reducing them from Rs36,000 per kilometre to zero.
The PTA chairman added that the government had taken all necessary steps to support the telecom industry, and it was now the responsibility of telecom operators to actively participate in the spectrum auction.
