On January 6, the Government of Pakistan issued a policy directive for the auction of radio frequency spectrum to support the expansion of next-generation mobile services. The auction, which will be conducted by the Pakistan Telecommunication Authority (PTA), covers multiple frequency bands and aims to enhance high-speed broadband access and facilitate the deployment of advanced mobile technologies, including 5G.
The spectrum bands to be auctioned include 15 MHz paired spectrum in the 700 MHz band, 3.6 MHz paired in the 1800 MHz band, 20 MHz paired in the 2100 MHz band, and unpaired spectrum totalling 50 MHz in the 2300 MHz band, 190 MHz in the 2600 MHz band, and 280 MHz in the 3500 MHz band. The policy directive ensures that the auction is technology-neutral, allowing the spectrum to be used for 4G, 5G, or future technologies in line with Pakistan’s regulatory and international standards.
Base prices for the spectrum have been set as follows: USD 6.5 million per MHz for paired spectrum in the 700 MHz band, USD 14 million for paired spectrum in the 1800 MHz and 2100 MHz bands, USD 1 million per MHz for unpaired spectrum in the 2300 MHz band, USD 1.25 million for the 2600 MHz band, and USD 0.65 million for the 3500 MHz band. The fees will be charged in US dollars, with the exchange rate determined based on the National Bank of Pakistan’s TT selling rate on the day before the auction.
A one-year moratorium period will be granted to successful bidders, during which no payments are required. After this period, at least 50 per cent of the total spectrum fee must be paid within the first year of licence issuance. The remaining amount can be paid over five equal annual instalments, calculated at the Karachi Interbank Offered Rate (KIBOR) plus 3 per cent. The licence duration for the awarded spectrum will be 15 years.
The PTA is expected to release an information memorandum detailing the auction process, eligibility criteria, and technical requirements for both existing operators and new entrants. The IT and Telecom Ministry has also proposed supportive measures, such as reduced taxation to encourage local smartphone manufacturing, duty-free import of 5G equipment, and implementation of industrial power tariffs for the telecom sector. The PTA has directed PTCL to participate in the auction, while telecom operator Jazz has welcomed the new policy framework.
