PTA gets five proposals for 5G spectrum auction
ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has received five proposals from international consultants to oversee the 5G spectrum auction in the country, with the process expected to be completed within the ongoing fiscal year.
However, industry players have expressed concerns about the timing of the auction, questioning whether it is the right moment to proceed with the 5G rollout.
In a statement released on Monday, the telecom regulator announced that it had received technical and financial bids for the auction of next-generation mobile services in Pakistan from five international consultants: Aetha Consulting Limited, Detecon Consulting FZ-LLC, Frontier Economics Limited, KomKonsult (Private) Limited and the National Economic Research Associates Inc.
The PTA said that a detailed evaluation of these bids would be conducted in accordance with the Public Procurement Regulatory Authority (PPRA) rules.
Process expected to be completed within the current fiscal year
Meanwhile, PTA Chairman Hafeezur Rehman, a retired major general, recently informed the National Assembly Standing Committee on Information Technology and Telecommunications that the 5G spectrum auction was under consideration and was likely to take place by March 2025.
However, the process has been marked by significant disagreements within the government. While some officials in the IT ministry support releasing additional spectrum for 5G at low rates to encourage growth, the finance ministry has insisted on fostering strong competition among telecom operators to maximise the auction’s value. The advisory committee overseeing the auction process is headed by the finance minister.
Industry leaders argue that the base for IT and telecom in Pakistan has not expanded sufficiently in recent years, and the country faces the emerging issue of “digital load-shedding”, where telecom and mobile data services are suspended during electricity outages. Recent disruptions in internet and mobile data services, along with restrictions on some social media platforms, have further deepened scepticism about the future of digitalisation in the country.
Jazz CEO Amir Ibrahim has been a vocal critic of launching 5G in the country, arguing that Pakistan has yet to fully leverage the potential of existing 4G services. At a recent event, Mr Ibrahim remarked that while customers view 5G as simply faster internet and governments see it as a lucrative auction opportunity, telecom operators do not share this enthusiasm, questioning the practicality and benefits of the new technology.
All major mobile operators in the country, including Zong, Jazz, Telenor and Ufone, have successfully conducted 5G trials and are currently utilising 274 MHz of spectrum. However, to introduce commercial 5G services, an additional 300 MHz of spectrum will need to be auctioned.
Another challenge facing the PTA in the upcoming 5G spectrum auction is the potential reduction in market competition, as Telenor has already decided to exit Pakistan. The Pakistan Telecommunication Company Limited (PTCL) is currently in the process of acquiring Telenor Pakistan’s stakes, a deal that is under review by the Competition Commission of Pakistan (CCP).
Published in Dawn, September 3rd, 2024