The Pakistan Telecommunication Authority (PTA) Chairman on Wednesday said that bids for the 5G spectrum auction must be submitted by February 27.

Under the rollout obligations, each operator will be required to set up 1,000 new sites every year and 200 sites dedicated to areas facing network issues. Services will be launched in urban as well as rural areas, while 5G will initially be rolled out in Islamabad and provincial capitals. Operators will also have to increase tower fiberization every year and submit a mandatory 5G coverage map.

In round one, operators will be required to purchase 2600 and 3500 MHz spectrum. A special spectrum cap has been placed so no single operator purchases the entire spectrum in a band.

PTA Chairman said Pakistan’s earlier dollar-denominated auctions created serious financial stress for telecom operators due to sharp exchange rate fluctuations. To ease industry pressure, the Right of Way (RoW) charges have been reduced from Rs. 3,600 to zero.

The PTA chairman said that 274 megahertz of spectrum is currently available. As part of the auction conditions, each operator has been required to purchase at least 100 megahertz of spectrum. He added that multiple measures have been included in the auction framework to improve quality of service in Pakistan.

Telecom Industry Consulted, Majority Demands Accepted

The PTA chairman said the telecom industry was consulted extensively during the auction preparation process, and operators’ concerns were addressed. Telecom companies presented their issues before the Auction Advisory Committee.

He said that eight out of ten demands raised by the telecom industry were accepted. To expand fiberisation, telecom operators will invest from their own budgets, and no funding will be taken from the Universal Service Fund (USF) for this purpose.

PTA Expects More Than Half of Available Spectrum to Be Sold

The PTA chairman said all operators are aware that network congestion exists across the country. However, he said it is too early to determine how much spectrum will ultimately be auctioned.

He expressed hope that more than 50 percent of the available spectrum will be sold. He added that if at least half of the spectrum is auctioned, the auction will be considered successful.

PTA Clarifies Mobile Phone Tax

The PTA chairman clarified that the authority has no role in mobile phone taxes, stating that these taxes are imposed by the government through the Federal Board of Revenue (FBR).

He said the FBR has reduced taxes on used mobile phones. The PTA has also asked the industry to manufacture 5G mobile phones locally and encouraged companies to produce affordable 5G devices.

According to the chairman, as new technology is introduced, cheaper mobile phones will automatically become available in the market.