Bid comes amid a growing demand for high-speed internet services, with a rising number of broadband subscribers
The Government of Pakistan has issued a policy directive for the upcoming auction of radio frequency spectrum aimed at enhancing next-generation mobile services. This directive, which follows the country’s broader digital transformation strategy, outlines the auction process for key frequency bands, including 700 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2600 MHz, and 3500 MHz.
In a bid to meet the growing demand for high-speed mobile broadband services, which have surged alongside a rising number of broadband subscribers, the Pakistan Telecommunication Authority (PTA) is tasked with managing the auction. According to the policy directive, the PTA will auction a total of 15 MHz paired spectrum in the 700 MHz band and 50 MHz of unpaired spectrum across the 2300 MHz, 2600 MHz, and 3500 MHz bands.
The base price for 1 MHz of paired spectrum in the 700 MHz band is set at USD 6.5 million, while the price for 1 MHz of paired spectrum in the 2100 MHz band is set at $14 million. Other base prices include USD 1 million for 1 MHz unpaired spectrum in the 2300 MHz band, $1.25 million for the 2600 MHz band, and $0.65 million for the 3500 MHz band.
The auction will follow a process aimed at ensuring transparency, with both existing and new cellular mobile operators eligible to participate. Furthermore, the PTA will establish an information memorandum detailing eligibility criteria, auction procedures, and the technology requirements for participants. This auction is designed to be technology-neutral, supporting the roll-out of advanced mobile technologies like 5G.
Technology-neutral means that the spectrum being auctioned is not restricted to just 5G technology, but can be used for any future mobile technology as well, such as 4G, 5G, or even 6G in the future, as long as the technology complies with Pakistan’s regulatory framework and international communications standards.
A moratorium of one year will be granted to auction winners, during which no payment will be due. Payment terms after this period will include both upfront payment options and a deferred payment structure, with interest based on the Karachi Interbank Offered Rate.
Measures outlined in the directive include promoting local manufacturing of smartphones and improving infrastructure to facilitate faster 5G adoption.
