NERA accepts consultancy role for Pakistan’s 5G spectrum auction

A U.S.-based international consultancy firm, National Economic Research Associates Inc. (NERA) has agreed to a letter of intent (LOI) to offer consultancy services for the 5G spectrum auction in Pakistan. The auction, aimed to improve next-generation mobile broadband services in the country is expected to be completed by April 2025.

Pakistan Telecommunication Authority (PTA) has recently issued the LOI, requiring NERA to respond within a week. NERA confirmed acceptance of the LOI through the Public Procurement Regulatory Authority(PPRA)’s e-Pak Acquisition & Disposal System (EPADS).

Both parties are expected to formalize the agreement this week, following which NERA will commence its operations. The firm is required to submit a report on spectrum valuation that contains the base price and other technical aspects within 60 working days.

NERA was selected due to its technical capabilities, which placed it second, and its cost proposal of $0.75 million. The firm will help the Pakistan government to release the IMT Spectrum to enhance mobile broadband services in the country.

As part of its role, NERA will analyze the existing cellular and IMT spectrum allocations in Pakistan and benchmark it against the regional practices, identifying gaps and proposing a phased auction of paired spectrum in 700, 1800 and 2100 MHz and unpaired spectrum in 2300, 2600, and 3500 MHz bands.

The consultancy will also identify the cost per MHz for these spectrum bands in both USD and PKR with future projections for the next three years. Also, NERA will analyze the possibility of offering variable payment schedules such as installments, and present different price schedules with reference to payment terms and rollout obligations.