ISLAMABAD: Govt Notifies Base Prices for 5G Spectrum Auction. The federal government has officially notified the base prices and spectrum volumes for the upcoming auction of next-generation mobile services, marking another key step toward Pakistan’s long-awaited 5G rollout.
Based on my research and review of the policy directive, the decision sets clear pricing, payment terms, and competition safeguards to ensure a transparent and well-structured auction process.
Policy Directive Issued After Approval
The formal directive was issued through the Ministry of Information Technology and Telecommunication after approval from the auction supervisory committee, which is chaired by Muhammad Aurangzeb.
Under the policy, all spectrum fees will be reflected in licenses in equivalent Pakistani rupees. The conversion from United States dollars will be calculated using the National Bank of Pakistan telegraphic transfer selling rate applicable one day before the auction.
PTA to Conduct Transparent Auction
The Pakistan Telecommunication Authority has been tasked with conducting the auction through an open and competitive process.
According to the notification, spectrum will be offered across six different frequency bands, covering both paired and unpaired spectrum suitable for next-generation mobile services.
Spectrum Bands and Volumes on Offer
The auction will include the following spectrum volumes:
- 700 Megahertz band: 15 Megahertz paired
- 1800 Megahertz band: 36 Megahertz paired
- 2100 Megahertz band: 20 Megahertz paired
- 2300 Megahertz band: 50 Megahertz unpaired
- 2600 Megahertz band: 190 Megahertz unpaired
- 3500 Megahertz band: 280 Megahertz unpaired
From my analysis, the wide range of bands is intended to support both coverage-focused and capacity-driven network deployments.
Base Prices Announced for Each Band
The government has fixed base prices per Megahertz as follows:
Paired Spectrum
- 700 Megahertz: 6.5 million United States dollars per Megahertz
- 1800 Megahertz: 14 million United States dollars per Megahertz
- 2100 Megahertz: 14 million United States dollars per Megahertz
Unpaired Spectrum
- 2300 Megahertz: 1 million United States dollars per Megahertz
- 2600 Megahertz: 1.25 million United States dollars per Megahertz
- 3500 Megahertz: 0.65 million United States dollars per Megahertz
| Spectrum Band | Type | Total Spectrum Offered | Base Price per MHz |
|---|---|---|---|
| 700 Megahertz | Paired | 15 Megahertz | 6.5 million United States dollars |
| 1800 Megahertz | Paired | 36 Megahertz | 14 million United States dollars |
| 2100 Megahertz | Paired | 20 Megahertz | 14 million United States dollars |
| 2300 Megahertz | Unpaired | 50 Megahertz | 1 million United States dollars |
| 2600 Megahertz | Unpaired | 190 Megahertz | 1.25 million United States dollars |
| 3500 Megahertz | Unpaired | 280 Megahertz | 0.65 million United States dollars |
Expert Analysis: Impact on Telecom Operators (Based on My Research)
From my analysis, the notified base prices and spectrum volumes create both opportunity and pressure for telecom operators in Pakistan.
Key Impacts on Operators
- High cost of low-band spectrum
The 700 Megahertz band is expensive but essential for wide-area coverage. Only financially strong operators may compete aggressively here. - Mid-band pressure on capital spending
The 1800 and 2100 Megahertz bands carry high base prices, which could strain balance sheets and slow aggressive bidding. - More interest in higher bands
The relatively lower cost of the 3500 Megahertz band makes it attractive for capacity-focused Fifth Generation services in urban areas. - Deferred payment eases short-term burden
The one-year moratorium and installment option may help operators manage cash flow during early network rollout. - Stronger compliance expectations
Updated rollout obligations mean operators must invest not just in spectrum, but also in infrastructure, fiber connectivity, and service quality.
Overall, the framework favors serious, long-term investors rather than speculative participation.
Flexible Payment Terms for Bidders
The notified framework offers payment flexibility to winning bidders.
Key points include:
- One-year moratorium with no payment or markup
- Option to pay full spectrum fee after one year
- Deferred option allowing 50 percent payment after one year
- Remaining amount payable in five annual instalments
The deferred payments will carry markup at one-year Karachi Interbank Offered Rate plus three percent per year. Early repayment will be allowed without penalty.
License Duration and Market Flexibility
Successful bidders will receive spectrum licenses valid for 15 years.
The licenses will also allow:
- Spectrum trading
- Spectrum sharing, subject to regulatory approval
After the auction, all existing mobile operators will be required to follow a spectrum rationalization plan to ensure efficient and contiguous use of frequencies, particularly in the 1800 and 2100 Megahertz bands.
Competition Safeguards and Rollout Obligations
To maintain fair competition, the policy introduces strict spectrum caps:
- Overall cap of 40 percent of total spectrum after the auction
- Low-band cap of 55 Megahertz across 700, 850, and 900 Megahertz
- Band-specific caps for higher frequencies
In addition, phased network rollout obligations will be embedded into licenses. These will cover city expansion, network sites, fiber-to-the-tower deployment, and improved Quality of Service standards nationwide.
What Happens Next
The Pakistan Telecommunication Authority will issue an Information Memorandum detailing auction rules, eligibility criteria, and procedures. The auction will be conducted within a reasonable timeframe after the issuance of the directive.
From my research, the government’s structured approach signals a serious push toward modern mobile services while balancing investor confidence and consumer interest.
