The government on Thursday issued policy directives for the 5G spectrum auction, defining auction steps, base prices, and regulatory guidelines with an aim at accelerating 5G launch and improving fast internet connectivity across Pakistan.
The directives — issued by the Ministry of Information Technology and Telecommunication (MoITT) — show the growth of broadband subscribers, which have now exceeded 152 million and the increasing demand for high-speed mobile broadband services nationwide.
Portions of the radio spectrum in the 700 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2600 MHz, and 3500 MHz bands are made available for auction, as the government noted that radio frequency spectrum is a scarce national resource that should be used in the public’s best interest while remaining compliant with Pakistan’s international obligations related to IMT and advanced mobile technologies.
The government has also set base prices for the 5G spectrum auction, which will impact telecom companies' network costs, resulting in higher service charges for consumers in Pakistan.
The base price for 1 MHz of paired spectrum in the 700 MHz band is set at $6.5 million. The base price for 1 MHz of paired spectrum in both the 1800 MHz and 2100 MHz bands is now fixed at $14 million each.
Meanwhile, for an unpaired spectrum, the base price is set at $1 million per 1 MHz in the 2300 MHz band, $1.25 million per 1 MHz in the 2600 MHz band, and $0.65 million per 1 MHz in the 3500 MHz band.
The government has instructed the Pakistan Telecommunication Authority (PTA) to hold a transparent and competitive auction process for the available spectrum.
As per the directive, 15 MHz paired spectrum in the 700 MHz band, 3.6 MHz paired in the 1800 MHz band, and 20 MHz paired in the 2100 MHz band, along with significant unpaired spectrum in the 2300 MHz, 2600 MHz, and 3500 MHz bands, will be auctioned.