Islamabad, Mar 3, 2025: The Auction Advisory Committee has decided to seek federal government intervention to expedite the Telenor-Ufone acquisition, as delays are impacting Pakistan’s forthcoming 5G spectrum auction.
This decision was made during a recent meeting chaired by Federal Finance Minister Muhammad Aurangzeb at the Finance Division.
During the session, the Pakistan Telecommunication Authority (PTA) provided a comprehensive briefing on the country’s 5G auction preparations and existing challenges.
According to sources, PTA officials stated that an international consultant was engaged in November 2024 to evaluate the telecom market and liaise with key stakeholders.
Hired in compliance with Public Procurement Regulatory Authority (PPRA) regulations, the consultant has completed the assessment.
Read More:
Pakistan Ranks Among Top Countries for Internet Shutdowns
The pricing structure, auction framework, and network deployment strategies are expected to be finalized soon, with the spectrum auction scheduled for mid-2025.
Sources indicate that PTA outlined hurdles in executing the 5G auction, particularly the delay in Ufone’s (PTCL Group) acquisition of Telenor Pakistan.
The unresolved approval from the Competition Commission of Pakistan (CCP) has created uncertainty regarding both firms’ participation in the spectrum auction.
This ambiguity prevents PTA from confirming whether Pakistan’s telecom sector will operate with three or four service providers, complicating the spectrum allocation strategy.
Additionally, PTA highlighted legal disputes over critical frequency bands as another major challenge.
The 2600 MHz band, a key asset for 5G connectivity, has been entangled in legal proceedings since 2007, while the 1800 MHz band also faces litigation.
These disputes pose significant risks to the timely deployment of 5G services in Pakistan.
The CCP has already completed Phase I of its review on the Telenor-Ufone merger, concluding that the transaction could potentially reduce competition in the telecom industry.
The Phase II evaluation has encountered complications in assessing market dominance and the industry’s structural changes.
Several hearings and consultations with industry stakeholders have been held to gauge the acquisition’s potential effects.
Pakistan Telecommunication Company Limited (PTCL) had secured a formal loan agreement in June 2024 with an International Finance Corporation (IFC)-led consortium, ensuring up to $400 million in funding for the acquisition of Telenor Pakistan and Orion Towers (Pvt.) Limited.
However, despite financial backing, regulatory obstacles continue to delay the completion of the deal, disrupting the telecom sector and Pakistan’s 5G rollout timeline.
The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister of State for IT and Telecommunication Shaza Fatima Khawaja, PTA Chairman, the Secretaries of IT and Law Ministries, and other high-ranking officials.
