5G Launch Is Nearly Impossible In Next 10 Months In Pakistan

Islamabad: It is improbable that Pakistan will be able to roll out 5G service in less than ten months. The scenario states that local cell operators are not prepared to buy 5G licenses because of economic instability, the continuous devaluation of the Pakistani rupee relative to the US dollar, and a lack of equipment to support the 5G spectrum in the country.

Up to now, the Federal Ministry of IT and Telecommunication has also been unsuccessful in introducing any 5G technology for the license auction for the aforementioned spectrum. Following a meeting with the Pakistan Telecommunication Authority, Umer Saif declared that 5G would roll out in Pakistan in less than ten months. Using WhatsApp, a number of reporters from Umer Saif posed the following queries: “The current economic climate is preventing the local network operators from purchasing licenses.” How will the government pay them back? Will they auction for less money, and if so, how will the government proceed with the construction of the 5G spectrum infrastructure?

In what other ways will the government enable 5G spectrum local networks? Second, the PTA has not yet received any policy from the Ministry of IT about a 5G license sale. The actual process is time-consuming, taking several months or even a year to finish. In these conditions, is it feasible to roll out 5G in less than ten months?

A credible source within the Pakistan Telecommunication Authority disclosed, under the condition of anonymity and without disclosing his identity to the public, that the rollout of 5G could be all but impossible within the next ten months due to local mobile network operators’ reluctance to purchase licenses due to a variety of obstacles. Since the required technology infrastructure is still lacking, local network operators are not interested in investing in 5G spectrum licenses, and the Ministry of IT has not yet released a 5G licensing policy.

The source claims that “the Ministry of IT first issues a policy to PTA under Section 8 before the auctioning of licenses for 5G spectrum, which then recruits international consultants to analyze and suggest auctioning templates.” Nothing has begun as of yet. Pakistan has been using 5G on a 30 MHz frequency for some time now, but the operators are unwilling to purchase. Less than 5% of users might have access to devices that support the 5G spectrum, according to one of the mobile network carriers.

Pakistan is a country where the 3G/ 4G spectrum has not even hit its peak, according to one significant operator, given that less than 50% of users own mobile phones that can handle the above-mentioned frequency.

How can 5G help us under these conditions? How are we going to afford a 5G license when our meager earnings are in rupees, which are losing value daily?

Pakistan now has the lowest Average Revenue Per User (ARPU), down to $0.85, after Uganda. Given the current state of affairs, how are local operators able to afford to spend millions or even billions of dollars on 5G licenses when we are struggling to make ends meet and lack the necessary infrastructure and technology to utilize the 5G spectrum across the country?

According to sources, individuals are unable to get 5G-compatible cell phones because of increased tariffs and import restrictions. When 5G is eventually introduced, local operators would have to update their networking infrastructures, which is now not feasible because of import prohibitions and the ban on LCs.

The CEO of Jazz Networks, Aamir Hafeez Ibrahim, also voiced similar opinions in interviews and on Twitter. It is difficult to accomplish in Pakistan, nevertheless, because of a number of obstacles, such as teledensity and taxes.

Between 2014 and 2017, the government of Pakistan earned almost 1.8 billion US dollars by selling 3G and 4G licenses to different mobile networks in the country. Ufone received a 4G license from the Pakistan Telecommunication Authority (PTA) in 2021. To safeguard client interests, this license included enhanced network rollout specifications and quality of service standards.

Prior to this, Ufione had offered $279 million for a 9 MHz block in the 1800 MHz band; this amount represented the whole proceeds from the spectrum auction. Three well-known cellular companies were awarded new licenses by the Pakistan Telecommunication Authority in the same year after they emerged victorious in the inaugural cellular spectrum auction for Next Generation Mobile Services (NGMS) in Gilgit Baltistan (GB) and Azad Jammu & Kashmir (AJ&K), yielding $30.322 million in revenue.

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