Pakistan raises $507 million in spectrum auction, sets stage for 5G rollout

Pakistan raises $507 million in spectrum auction, sets stage for 5G rollout

By Staff Reporter

ISLAMABAD: Pakistan sold 480 megahertz of spectrum for $507 million in a live auction Tuesday, clearing the way for the country’s long-delayed shift to 5G networks and promising faster, cheaper mobile data in one of the world’s largest telecom markets by population.

The Pakistan Telecommunication Authority auctioned frequencies across multiple bands, with the three main operators — China Mobile-backed Zong, Veon Ltd.-controlled Jazz, and Ufone — snapping up every lot they targeted after intense competition, particularly in the 2600 MHz slice seen as critical for 5G. Zong took 110 MHz, Ufone 180 MHz and Jazz 190 MHz. Jazz also added spectrum in legacy bands, emerging as the biggest overall buyer.

The sale, conducted in Islamabad, marks the first significant spectrum release since Pakistan introduced 3G and 4G under former Prime Minister Nawaz Sharif. Officials said the proceeds and added airwaves will roughly double the country’s available spectrum from the 274 MHz it has relied on since 1997.

PTA Chairman Hafeez-ur-Rehman called the outcome “a very big achievement and a big victory for Pakistan” in remarks broadcast on state media. “In total out of 595 MHz, 480 MHz spectrum has been sold today,” he said.

Bidding opened in the presence of Finance Minister Muhammad Aurangzeb, Information Minister Attaullah Tarrar, former IT Minister Syed Aminul Haque and members of the National Assembly’s IT and telecom committee. All three operators were required to secure at least 100 MHz each. Jazz, which paid for the largest share, bought 20 MHz in the 700 MHz band for rural coverage, 50 MHz in 2300 MHz, 70 MHz in 2600 MHz and 50 MHz in 3500 MHz. Ufone secured 60 MHz in 2600 MHz and 120 MHz in 3500 MHz. Zong took 60 MHz in 2600 MHz and 50 MHz in 3500 MHz.

After the results, Jazz CEO Amir Ibrahim said the 700 MHz purchase would help expand services in sparsely populated areas. He also announced that test trials of 5G would begin Wednesday on 180 towers for Jazz customers.

The auction process itself was fluid. For the 2600 MHz band, the PTA had initially offered 190 MHz in 10 MHz lots; after bidders demanded 30 lots, officials added 11 extra lots totaling 110 MHz and lifted the reserve price by 5%. In the 3500 MHz band, 28 lots were offered but operators bid on only 20.

Finance Minister Aurangzeb framed the sale as part of a broader effort to hand the private sector the tools it needs to drive growth. “I’ve always said digital is not an end in itself; it’s a means to an end. Faster, cheaper, better — it’s as simple as that,” he told the audience. He credited the IT ministry for maintaining policy continuity across administrations and said the new spectrum would support everything from artificial intelligence to blockchain and Web 3.0.

Linking the auction to the government’s fresh austerity push announced a day earlier by Prime Minister Shehbaz Sharif, Aurangzeb added that better connectivity would ease the shift to online education and remote work “as we negotiate the current oil crisis.”

IT Minister Shaza Fatima Khawaja said no major spectrum auctions had taken place since the 3G-4G launch years ago, leaving the country struggling with connectivity despite a population exceeding 240 million and more than 190 million mobile subscribers. Khawaja contrasted Pakistan’s 274 MHz of spectrum with Bangladesh’s 600 MHz — even though Bangladesh has only two-thirds of Pakistan’s population. “Even if we just do the base auction successfully, our spectrum availability will double,” she said.

Consumers can expect tangible gains quickly, she added. “In four or five months, you will see significantly better quality in your 4G services.” The government aims to switch on 5G in Islamabad, Lahore, Karachi, Peshawar and Quetta within five to six months.

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