Islamabad, Jan 11: The Competition Commission of Pakistan’s (CCP’s ) delay in deciding the acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) has raised concerns over meeting the government’s timeline for launching 5G services by April 2025
The National Economic Research Associates Inc. a U.S.-based consultancy firm engaged by the government for the spectrum auction, had already expressed reservations on certain issues.
NERA recommended that the decision regarding the number of Cellular Mobile Operators (CMOs), particularly considering the proposed merger, should be resolved promptly.
NERA also highlighted concerns about the lack of availability of the complete 194 MHz in the 2.6 GHz band, which is highly desirable for Cellular Mobile Operators as it supports both LTE/4G and 5G technologies.
However, 140 MHz of this band remains entangled in legal disputes, as discussed in the last Advisory Committee meeting chaired by Federal Finance Minister Senator Muhammad Aurangzeb.
This committee oversees the process of releasing the IMT Spectrum to enhance mobile broadband services in Pakistan.
The legal complications surrounding the 140 MHz in the 2600 MHz band, considered optimal for launching 5G in Pakistan, may hinder the government’s objective of expanding broadband coverage. The remaining 54 MHz in this crucial band might not even fulfill the requirements of a single operator.
The Pakistan Telecommunication Authority (PTA) enlisted NERA’s consultancy services for the “Release of IMT Spectrum to Enhance Next-Generation Mobile Broadband Services in Pakistan,” with the contract signed on November 5, 2024.
As per the agreement, NERA will deliver its report and recommendations to the auction advisory committee within 60 working days.
However, without a decision from the CCP regarding the CMOs’ merger and the unresolved issue of the 140 MHz band, NERA may struggle to provide actionable recommendations to the government. After the CCP issues a decision on the merger, the matter will proceed to the PTA for regulatory clearance, followed by approvals from other authorities, including the SECP and SBP. This entire process could take one to two months.
After cabinet approval, the PTA will issue the Information Memorandum (IM), providing Cellular Mobile Operators at least 45 to 60 days to review the auction rules and make investment decisions.
Following this, the auction will take place, and spectrum allocation and payment will conclude within 30 days, as per past practices. These timelines are based on ideal conditions, excluding potential objections or court interventions.
Previously, the government aimed to conduct the 5G spectrum auction by March 2023, with an initial rollout planned in major cities.
