Consultants raise concerns over 5G auction hurdles in Pakistan

ISLAMABAD: Foreign consultants hired by the Pakistan Telecommunication Authority (PTA) have identified serious issues that could delay the country’s planned launch of 5G technology, scheduled for next year.

According to Dawn, the findings were presented by the National Economic Research Associates (NERA), a US-backed consultancy, following discussions with industry stakeholders.

During a briefing with the government, NERA outlined policy, business, and administrative hurdles that could hinder the 5G spectrum auction and subsequent deployment.

Finance Minister Muhammad Aurangzeb chaired the advisory committee meeting, which included senior officials such as Rana Tanveer Hussain, Minister for Industries and Production, and Shaza Fatima Khawaja, Minister of State for Information Technology.

According to an official statement, the consultants pointed to several key challenges: administrative restrictions on internet services, underutilisation of the current spectrum, and the preference for auctioning the next-generation spectrum in foreign currency rather than Pakistani rupees.

These issues, they warned, could dampen competition and reduce the financial bids needed to fund 5G’s deployment.

The report also raised concerns about Pakistan’s reliance on foreign exchange-based spectrum auctions, a model that most countries have shifted away from. The consultants suggested that sticking to this model could limit participation and drive down investment in the technology’s rollout.

Adding to the complexity, some telecom companies expressed reluctance over auction citing economic constraints and regulatory barriers. Pakistan has struggled to fully exploit its 4G capabilities with operators criticising the environment as stifling sector growth.

Stakeholders, as per Dawn, remain divided whether the focus should be on maximising auction revenue or fostering broader access to 5G services.

NERA’s findings suggest that a successful rollout will require the government to ease regulatory restrictions, particularly those related to traffic management and content controls.

The final report will provide further guidance on how to overcome these challenges, as Pakistan pushes forward with its ambitions for a digital economy.

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