Tech Desk 
Dec 26, 2024
As Pakistan is making significant strides to launch 5G in Pakistan, the National Economic Research Associates Inc (NERA) —a US-based consultancy firm outsourced for 5G spectrum auction next year— is reportedly in favour of demands set forth by the telecom operators in the country.
The demands presented by telecom operators include extended payment terms, reasonable reserve prices, and rupee-based prices for a successful 5G auction in the country, as reported by ProPakistani.
The international consultant warned that high spectrum prices will discourage telecom companies and diminish competition, which may lead to less innovation, high prices, as well as various other unfavourable outcomes for both the sector and consumers.
"It is critical to emphasize that even from the perspective of net flows to government revenue, it is highly likely that lower spectrum prices will lead to long-term higher government revenues, not lower ones”, said MD NERA in a presentation given during the National Broadband Network Forum 2024.
He said Pakistan is among the countries having an acute shortage of spectrum. His remarks corroborate the Global System for Mobile Communications Association's (GSMA) mobile connectivity index report 2023, wherein Pakistan ranked lowest in the South Asia region for spectrum allocation.
All governments come across a trade-off between the short-term payments to government revenues from costly spectrum, and long-term social and economic advantages which follow a thriving telecommunication sector driven by reasonably priced spectrum, said the NERA official regarding the relationship between spectrum and government revenues.
