Telecom Operators Address Challenges and Outline Prerequisites for 5G in Pakistan

Pakistan’s telecom industry has identified key requirements for the successful deployment of 5G services, emphasizing local currency transactions, flexible payment plans, reduced taxation, and sufficient spectrum availability in the 2600 MHz band. These measures are seen as vital to overcoming industry challenges and ensuring a smooth transition to 5G.

The Pakistan Telecommunication Authority (PTA) has engaged the services of National Economic Research Associates Inc. (NERA), a prominent global consultancy firm, to formulate a detailed policy for the allocation of 5G spectrum. NERA is assessing the financial stability of the telecommunications sector while investigating novel auction models aimed at promoting investment and improving connectivity.

This collaboration highlights the PTA’s commitment to the implementation of 5G policies that are consistent with international standards, while simultaneously addressing the distinct dynamics of Pakistan’s telecommunications market. Through its engagement with telecommunications operators, NERA has fostered discussions on pivotal issues, encompassing tax reforms, the affordability of handsets, staggered 15-year payment plans, and the challenges associated with spectrum allocation.

Considerable emphasis has been directed towards the availability of spectrum, especially within the 2600 MHz frequency band. Operators have expressed apprehensions regarding the restricted availability of 140 MHz, which is essential for the implementation of 5G technology. Telecommunications companies have advocated for the formal recognition of the sector as an industry, imploring policymakers to address fundamental issues in order to establish a sustainable framework for 5G technology.

According to industry leaders, addressing these challenges is paramount for ensuring successful 5G implementation. Mudassar Hussain, Head of Public Policy & Regulatory Affairs at Jazz, stated, “The resolution of sector challenges must precede the establishment of any auction framework to guarantee network rollouts’ viability and attract future investments in technologies like 5G.”

Similarly, Shan Ul Haq, SVP of Corporate Affairs at Telenor Pakistan, highlighted the importance of balanced policies, saying, “For 5G to succeed, it must be supported by a robust policy framework that benefits operators and consumers. We need forward-looking policies that encourage sustainable industry growth and pave the way for advanced broadband technologies.”

Despite the increasing momentum surrounding 5G technology, telecommunications operators persist in underscoring the necessity of resolving existing challenges, including diminishing revenues, currency devaluation, and connectivity disparities, to fortify the foundation of Pakistan’s telecommunications sector. The industry maintains a positive outlook that the recommendations put forth by NERA will steer the nation towards a 5G future that is both inclusive and sustainable.