PTA confirms March 10 for 5G auction, projects up to $700m inflows in Pakistan

2026-02-19 - 07:03

ISLAMABAD -The Pakistan Telecommunication Authority (PTA) has reaffirmed that Pakistan’s 5G spectrum auction would be held on March 10 as the officials estimated potential proceeds ranging from $300 million to $700 million. The regulator is placing 597 megahertz (MHz) of spectrum in multiple frequency bands on the block. Three existing mobile network operators have been required to acquire a minimum of 100MHz each as part of the auction framework. Speaking at a media briefing, PTA Director General Licensing retired Brigadier Aamir Shahzad said that even if 300MHz is sold at the base price without competitive bidding, the government would generate around $300m. He added that if the entire 597MHz is auctioned at relatively competitive rates, revenues could climb to $700m, though he described that scenario as less likely. The auction would be conducted through a multi-round electronic clock format, with the main allocation phase beginning on March 10. The 2600MHz and 3500MHz bands will be offered in the first round. Officials said telecom operators would require three to six months after the auction to commercially launch 5G services, as additional infrastructure would need to be deployed for the newly acquired spectrum. PTA Chairman Hafeezur Rehman said the auction is expected to significantly improve service quality and mobile broadband speeds. He noted that around 50 million new subscribers have been added over the past five years, while only 10MHz of additional spectrum was introduced in the 2021 auction. Hafeezur Rehman said enhanced data capacity and wider coverage would likely increase the average revenue per user (ARPU) for operators. According to the chairman, ARPU has increased from $0.7 to $1.3 and is projected to grow further as data consumption rises. The regulator anticipates that mobile broadband speeds may improve by approximately 25 per cent following the deployment of the new spectrum. The authorities have also introduced incentives in the upcoming auction while tightening quality-of-service and coverage obligations. The government has removed the right-of-way fee — previously about Rs36,000 per kilometre annually — to facilitate fibre network expansion and accelerate digital infrastructure development. The officials said telecom operators have already placed orders for 5G equipment, while local manufacturing of 5G-enabled smartphones has commenced, with an estimated 500,000 to 600,000 units produced so far. Under the revised rollout requirements, operators will have to expand 5G coverage beyond Islamabad, Karachi, Lahore, Peshawar and Quetta. The fibre-to-the-site ratio is to increase from 20 per cent to 35 per cent by 2035. The performance benchmarks have also been strengthened. Minimum 4G download speeds will rise from 4Mbps to 20Mbps in 2026–27 and to 50Mbps by 2030–35. For 5G, minimum download speeds will increase from 50Mbps initially to 100Mbps by 2030–35, while latency targets will be reduced to 35 milliseconds. Upload speeds for both technologies will be set at 20 per cent of their respective download speeds. 5G Auction gets tough as PTA enforces $1,000 Bid Rule for all telecos