The government has intensified consultations on the long-awaited 5G spectrum auction, with telecom operators and global industry representatives urging Islamabad to lower spectrum prices and address regulatory hurdles.

The Spectrum Auction Advisory Committee, led by Finance Minister Aurangzeb, met telecom operators and a delegation from the GSM Association (GSMA) in Islamabad to discuss the framework of the upcoming 5G auction.

Industry concerns

Telecom operators submitted their proposals, highlighting the high cost of spectrum and heavy taxation as major obstacles to network rollout. They stressed that unless pricing issues are addressed, the country risks slower adoption of 5G technology.

Julian Gorman, GSMA’s Asia Pacific Head, told journalists after the meeting that Pakistan stood to lose between $1.8 billion and $4.3 billion in economic benefits over the next five years if spectrum release was delayed further.

He cautioned that spectrum costs in Pakistan were among the highest in the world, consuming nearly 20% of telecom operators’ revenue, which in turn affected network coverage and internet speeds.

Call for reforms

“The dream of a Digital Pakistan can only be realized with an effective spectrum policy,” Gorman said. “More spectrum will not only strengthen the mobile industry but also drive economic growth and accelerate the transition to a cashless economy.”

He urged the government to adopt a new auction design that includes:

Lower reserve prices for spectrum
Reduced taxes on the telecom sector
Flexibility in payment structures
Spectrum fee payments in local currency instead of US dollars

Government’s response

Finance Minister Aurangzeb assured operators that their concerns would be reviewed before finalizing the auction policy. The government has yet to announce a timeline for the 5G rollout, but officials have repeatedly linked it with Pakistan’s broader digital transformation agenda.