Pakistan’s telecom sector has taken another major step toward fifth generation services as Pakistan Telecommunication Company Limited confirmed its participation in the upcoming 5G spectrum auction. The announcement signals growing industry readiness ahead of Pakistan’s planned transition to next-generation mobile networks.
PTCL Confirms Participation in 5G Auction
Speaking at a press conference in Islamabad, Hatem Bamatraf, President and Group Chief Executive Officer of PTCL and Ufone, said that PTCL, together with the merged telecom entity of Ufone and Telenor Pakistan, will take part in the upcoming 5G spectrum auction.
He expressed hope that long-standing concerns of the telecom industry would be addressed and that spectrum would be offered on favorable and sustainable terms. According to him, fair auction conditions are essential for operators to invest confidently in large-scale network upgrades required for fifth generation services.
PTCL Completes Acquisition of Telenor Pakistan
The press conference also marked the formal announcement of PTCL’s acquisition of 100 percent shareholding of Telenor Pakistan and Orion Towers. With this transaction, Telenor Pakistan and Orion Towers have become fully owned subsidiaries of PTCL, alongside Pak Telecom Mobile Limited (Ufone) and U Microfinance Bank.
For the next five to six months, Telenor Pakistan will continue operating as a separate legal entity. After this transition period, it is expected to integrate with Ufone under a single merged company structure, subject to approvals from the Pakistan Telecommunication Authority and the Islamabad High Court.
Focus on Spectrum Optimisation and Network Expansion
Mr Bamatraf said the merged telecom entity would focus on optimising spectrum resources, expanding network capacity, and delivering more secure and digitally enabled services. He added that these efforts are aligned with Pakistan’s broader digital ambitions, including future-ready mobile connectivity.
The merger is expected to help reduce duplication of infrastructure and improve operational efficiency, which could play an important role in supporting fifth generation network deployment once spectrum is allocated.
Assurance to Employees After the Merger
Addressing concerns among staff, the PTCL Group Chief Executive Officer assured employees of Telenor Pakistan that no job losses would result from the merger. He emphasised respect for talent and said that the integration process would combine best practices from both organisations.
This assurance is seen as important at a time when consolidation in the telecom sector often raises fears of workforce reductions.
Market Position After the Merger
Following PTCL’s acquisition of Telenor Pakistan, the merged entity, including Ufone, is expected to become Pakistan’s second-largest telecom operator, serving around 35 percent of mobile subscribers.
- Jazz Pakistan will remain the market leader with approximately 37 percent share
- Zong will continue as the third-largest operator
This new market structure could influence competition and investment strategies ahead of the 5G era.
Acting Chief Executive Officer Appointed
In a related development, the newly formed board of Telenor Pakistan appointed Awais Vohra as acting Chief Executive Officer. Mr Vohra is a founding member of Telenor Pakistan’s original launch team and previously served as Chief Technology Officer.
With all necessary regulatory approvals now completed, Telenor Pakistan is operating as an autonomous subsidiary of PTCL during the transition period.
Unresolved Etisalat Issue Remains Unaddressed
During the press conference, Mr Bamatraf did not comment on the long-standing issue involving approximately 800 million dollars withheld by Etisalat since 2006, when the UAE-based firm acquired management control of PTCL.
Currently, the Government of Pakistan holds 62 percent of PTCL shares, while Etisalat owns 26 percent, and public investors hold the remaining 12 percent. The issue remains unresolved and continues to attract attention in policy discussions.
PTA Annual Report Highlights Sector Growth
Separately, the Pakistan Telecommunication Authority Annual Report 2024–25 highlights strong growth across the telecom sector. According to the report:
- Telecom revenues exceeded one trillion rupees, showing year-on-year growth
- Total subscribers crossed 200 million
- Broadband users surpassed 150 million
- Network coverage exceeded 92 percent nationwide
The sector’s fiscal contribution reached 402 billion rupees, while total investment stood at 838 million dollars. Data usage also increased sharply, reaching 27,727 petabytes.
However, PTA officials noted that high electricity costs and dollar-linked government payments continue to place pressure on operators, even as revenues grow.
What This Means for 5G in Pakistan
PTCL’s confirmation of participation in the 5G spectrum auction, combined with sector consolidation and improving financial indicators, suggests that Pakistan’s telecom industry is positioning itself for fifth generation services.
While challenges remain, especially around costs and regulatory approvals, these developments mark a significant step toward a more competitive and prepared telecom landscape ahead of the 5G rollout.
