KEY POINTS
- Pakistan will auction seven spectrum bands next month, including five new ones, to launch 5G services.
- New mobile phone leasing policy aims to make 5G smartphones affordable for more users.
- The cabinet has approved an MVNO policy to boost competition by allowing new operators into the telecom market.
- Infrastructure improvements, including new submarine cables and eased fibre rollout, will support the 5G ecosystem.
ISLAMABAD: Pakistan will auction seven spectrum bands for the launch of 5G services next month, Minister for Information Technology and Telecommunication Shaza Fatima announced on Friday.
She stated that five of these bands are being offered for the first time in the country, while two have been auctioned previously. This marks a pivotal expansion phase for Pakistan’s telecom sector, which currently operates on just 274 MHz of spectrum, one of the lowest allocations in the region.
The minister, in a press conference, detailed that significant efforts have been made to improve spectrum availability, with 606 MHz vacated last year and a cabinet approval secured for the release of nearly 600 MHz more. “Improved spectrum availability will enable the launch of 5G services and enhance 4G performance,” she said, projecting that 5G rollout in major cities could begin within 6 to 7 months after the auction.
Infrastructure and affordability: Building the 5G ecosystem
Alongside the spectrum auction, the minister outlined complementary measures to support the 5G ecosystem. To address the high cost of 5G-enabled devices, the government plans to introduce a mobile phone leasing policy, aiming to make smartphones more accessible, given the currently low number of compatible devices in the country.
On connectivity, she highlighted the strengthening of Pakistan’s international internet backbone, with three new submarine cables landing in the past 18 months. This is expected to significantly improve overall internet quality and capacity.
Pakistan Telecommunication Authority (PTA) is taking steps to expand domestic broadband access by issuing district-level licenses to promote fiberization in underserved areas and abolishing right-of-way charges.
MVNO policy approved to invigorate market competition
In a major structural reform, the federal cabinet has approved the Mobile Virtual Network Operator (MVNO) policy. This framework will allow new, non-spectrum-owning operators to enter the market by leasing capacity from the existing three Mobile Network Operators (MNOs). MVNOs will operate under their own brands and offer customized services.
Minister Fatima emphasised the policy’s potential, noting that the global MVNO market is valued at $94 billion and projected to reach $174 billion by 2032. “Pakistan stands to gain big from this,” she stated. The policy is designed to boost competition, attract foreign investment, and expand consumer choice in a currently concentrated market.
Framework details: Licensing, Fees, and Regulations
The MVNO framework, finalized by the PTA, stipulates:
- A 15-year nationwide license with a one-time upfront fee of $140,000 (payable in PKR).
- Annual regulatory contributions based on combined revenue with the host MNO.
- Mandatory service quality standards, including a 24/7 helpline and customer care centres.
- Strict adherence to national security protocols.
- PTA approval required for all MNO-MVNO commercial agreements.
The introduction of MVNOs is expected to create a more dynamic telecom landscape, providing momentum for the upcoming 5G auction by demonstrating market growth potential and encouraging diverse participation.
