Telcos Warn PTA: Pakistan 5G Auction Plan Deemed Unviable
Pakistan’s leading telecom operators have issued a strong warning to the Pakistan Telecommunication Authority (PTA). They assert that the proposed Information Memorandum for the upcoming Pakistan 5G Auction is commercially unviable. Industry leaders argue this plan demands an annual investment of approximately $15 million per operator in network infrastructure. Furthermore, considerable spectrum costs add to this burden, which they believe is unsustainable for the local market.
This critical feedback arrives as the PTA prepares to launch 5G services across Pakistan, following a federal government policy directive. Consequently, the concerns from telcos highlight a significant challenge: balancing ambitious technological advancement with the financial realities of the telecommunications sector.
High Costs & Strict Rules Challenge 5G Deployment in Pakistan
Operators primarily worry about the ambitious deployment requirements detailed in the Information Memorandum. It mandates each operator must deploy at least 1,000 new cell sites every year. This translates into an estimated annual infrastructure investment of $150-200 million per operator over the next five years. However, telcos deem this figure excessively high, especially given Pakistan’s currently constrained market conditions.
Moreover, operators contend that such substantial investment cannot be justified without a more favorable regulatory and economic environment. The proposed framework also includes a phased 5G rollout, commencing in Islamabad and the four provincial capitals. Significantly, Quality-of-Service (QoS) requirements have been tightened:
- The minimum 4G speed threshold increased from 4 Mbps to 20 Mbps.
- Fixed broadband minimum speeds are set to rise from 4 Mbps to 10 Mbps within one year.
- The minimum 5G speed is stipulated at a demanding 50 Mbps.
Financial Pressures Burden Pakistan’s Telecom Sector
Telecom operators emphasize that the PTA’s current framework overlooks severe financial pressures already burdening the sector. These include persistently low tariffs, a high incidence of taxes, escalating energy costs, and the continuous depreciation of the Pakistani Rupee. These factors collectively erode profitability.
Furthermore, they reduce operators’ capacity to undertake large-scale, long-term investments for 5G implementation. Therefore, industry stakeholders believe a sustainable 5G rollout demands a holistic approach. This approach must acknowledge and mitigate existing economic challenges. Without addressing these fundamental issues, the aggressive investment targets set by the PTA are simply not feasible. Such targets could jeopardize the sector’s financial health, rather than fostering growth.
Collaborative Revisions for a Viable Pakistan 5G Auction
The PTA plans to auction 597.2 MHz of spectrum across six frequency bands. Importantly, it has proactively sought feedback from stakeholders. This engagement is crucial, as the final Information Memorandum will incorporate industry input and necessary revisions. Thus, finding common ground is paramount.
Telcos are hopeful their concerns will receive serious consideration, leading to a more realistic and financially viable Pakistan 5G Auction plan. A collaborative approach between the regulator and operators is essential. This ensures Pakistan’s leap into the 5G era is both technologically advanced and economically sustainable. Ultimately, this benefits consumers through high-quality, affordable services. The success of the 5G auction and subsequent rollout hinges on finding a crucial middle ground. This middle ground must encourage investment without imposing an unbearable burden on the industry.
