The federal government has announced base prices for several spectrum bands that will be auctioned for next-generation mobile services, giving telecom operators greater financial clarity ahead of the planned spectrum auction.
The base prices were finalized on the recommendations of the Auction Advisory Committee and are based on input from an independent international consultant, according to officials familiar with the decision.
Under the policy directive, the base price for 1 MHz of paired spectrum in the 700 MHz band has been set at 6.5 million dollars. For the 1800 MHz and 2100 MHz bands, the base price for 1 MHz of paired spectrum has been fixed at 14 million dollars each. These bands are considered commercially important for expanding mobile broadband services.
For unpaired spectrum, the base price has been set at 1 million dollars per 1 MHz in the 2300 MHz band, 1.25 million dollars per 1 MHz in the 2600 MHz band, and 0.65 million dollars per 1 MHz in the 3500 MHz band. The 3500 MHz band is widely seen as a key frequency range for 5G services around the world.
Also Read: Hidden Gem Near Islamabad: Lakeshore City’s Rising Residential Value Explained
The directive states that spectrum fees will be payable in Pakistani rupees. The dollar to rupee conversion rate will be locked at the TT selling rate of the National Bank of Pakistan applicable on the day before the auction. This mechanism is meant to protect bidders from exchange rate fluctuations during the auction process.
The government has also offered flexible payment options to winning operators. License holders may choose to pay the full spectrum fee by the first anniversary of the license award. Alternatively, they can opt for a deferred payment plan.
Under the deferred option, at least 50 percent of the total fee must be paid by the first anniversary, while the remaining amount can be paid in five equal annual installments starting from the second anniversary. The outstanding balance will carry an additional financing charge at KIBOR plus 3 percent per year.
For the first installment, the interest rate will be based on the one-year KIBOR rate prevailing on the date the license is issued. For later installments, the KIBOR rate applicable will be the one prevailing on the payment date of the previous installment.
Operators will also be allowed to prepay the remaining balance at any time within five years without any penalty. However, interest at KIBOR plus 3 percent will apply until the date of final payment.
The spectrum licenses awarded through the auction will be valid for 15 years. The policy directive also allows spectrum trading and sharing in line with rules and regulations set by the Pakistan Telecommunication Authority.
Officials said the new pricing and payment structure is designed to encourage participation, support long-term investment, and help advance next-generation mobile services across Pakistan.
