ISLAMABAD: National Economic Research Associates (NERA), a US-based consultancy hired by the Pakistan Telecommunication Authority (PTA), has identified major hurdles that could delay the rollout of 5G spectrum technology, scheduled for April 2025.
NERA shared its preliminary findings with the advisory committee on Friday after a week of consultations with stakeholders. The committee, headed by Finance Minister Muhammad Aurangzeb, discussed issues related to the rollout of the International Mobile Telecommunications (IMT) spectrum.
NERA highlighted key hurdles, including administrative restrictions on internet services, low use of existing spectrum, and the decision to auction 5G spectrum in foreign currency rather than local currency. These issues could limit competition and reduce investment in next generation technology. Most countries now hold spectrum auctions in local currency to ensure market access.
Some telecom operators raised concerns about economic instability, restrictive policies and their limited ability to participate in the auction. These operators pointed out that the country has not yet benefited from the 4G spectrum, which was launched three years ago.
The Minister of Finance stressed the importance of a strong digital economy for sustainable development. He reiterated the government’s commitment to enhancing connectivity and improving digital infrastructure to support economic growth.
NERA will submit its final report, including policy recommendations and a roadmap for the auction, in the coming months. It also proposed balancing affordable access and foreign exchange earnings by easing restrictions on internet traffic and encouraging expansion of the sector.
The PTA’s ability to meet these challenges will determine the success of the 5G auction and the launch’s contribution to digital transformation in Pakistan.