Pakistan’s telecommunications sector is on the cusp of a major transformation with the impending rollout of 5G services. The Pakistan Telecommunication Authority (PTA) has been actively preparing for a spectrum auction aimed at enabling Next Generation Mobile Services (NGMS), including 5G, to improve connectivity, boost digital economy growth, and bridge the digital divide.
This comes amid ongoing efforts highlighted in PTA’s Annual Report 2024–25, which emphasized progress toward 5G readiness, expanded broadband access, and enhanced cybersecurity. Recent updates, driven by government directives and PTA actions, indicate that the auction process is advancing rapidly in early 2026.
Government Policy Directive and PTA’s Response
On January 6, 2026, the Government of Pakistan (GoP) issued a Policy Directive for the IMT Spectrum Auction to improve NGMS in Pakistan for 2025-26. This directive instructed the PTA to conduct the auction transparently, outlining the spectrum bands, base prices, and policy objectives to facilitate 5G deployment, encourage investment, and ensure competitive market dynamics.
The directive aligns with broader goals of digital transformation, as noted in various media reports on government approvals for reserve prices.
In response, the PTA finalized and published the Information Memorandum (IM) on January 9, 2026, pursuant to the Policy Directive and the Pakistan Telecommunication (Re-Organization) Act, 1996. The IM provides comprehensive details on the auction, including terms and conditions, and is available on the PTA website.
This marks a key milestone, as confirmed in PTA’s official announcements and press coverage, signaling that preparations are complete for stakeholder consultations and the auction itself.
Available Spectrum Bands and Quantities
The auction will offer a total of approximately 597.2 MHz of spectrum below 6 GHz, suitable for 5G and enhanced 4G services. The bands and quantities are as follows:
| Band | Quantity | Configuration |
|---|---|---|
| 700 MHz | 2×15 MHz | Paired (FDD) |
| 1800 MHz | 2×3.6 MHz | Paired (FDD) |
| 2100 MHz | 2×20 MHz | Paired (FDD) |
| 2300 MHz | 50 MHz | Unpaired (TDD) |
| 2600 MHz | 190 MHz | Unpaired (TDD) |
| 3500 MHz | 280 MHz | Unpaired (TDD) |
Base/Reserve Prices
The reserve prices, set by the GoP and incorporated into the IM, are denominated in US dollars per MHz. They represent the minimum starting bids:
- 700 MHz: $6.5 million per MHz (e.g., $32.5 million per 2×5 MHz lot)
- 1800 MHz: $14 million per MHz (e.g., $16.8 million per 2×1.2 MHz lot)
- 2100 MHz: $14 million per MHz (e.g., $70 million per 2×5 MHz lot)
- 2300 MHz: $1 million per MHz (e.g., $10 million per 10 MHz lot)
- 2600 MHz: $1.25 million per MHz (e.g., $12.5 million per 10 MHz lot)
- 3500 MHz: $0.65 million per MHz (e.g., $6.5 million per 10 MHz lot)
These prices have sparked discussions on affordability, with industry groups like GSMA advocating for conservative pricing to ensure operator viability (12-15% of revenue cap).
Auction Process and Format
The auction follows a five-stage process to ensure transparency and efficiency:
- Application: Submission of bids and documents.
- Qualification: Review of eligibility.
- Allocation Stage: Multi-round clock auction where bidders submit price-quantity pairs. Starts at reserve prices; rounds continue until demand equals or falls below supply. Uses an Electronic Auction System (EAS) with eligibility points and extension rights.
- Assignment Stage: Separate auction for specific frequency assignments within bands (voluntary, with $0 reserve for ranks).
- Grant: Issuance of licenses post-payment and guarantees.
This format is similar to international best practices, promoting fair competition among existing operators and potential new entrants.
License Duration, Terms, and Obligations
Successful bidders will receive 15-year licenses from the effective date, renewable under prevailing GoP policies. Key terms include:
- Eligibility: Bidders must be SECP-registered companies in Pakistan, disclose significant ownership (>10%), and warrant no insolvency, defaults, or collusion. New entrants (without existing NGMS licenses) are barred from 1800 MHz and subject to spectrum caps (e.g., 348.5 MHz total IMT spectrum).
- Payment Terms: Fees in PKR (converted from USD at NBP rate). Options: 100% upfront after a one-year moratorium, or 50% upfront with the rest in five annual installments (with KIBOR +3% markup). Pre-bid deposit of $15 million required.
- Rollout Obligations: Phased over four periods (2026-2035), requiring annual deployment of 1,000 sites (20% new), coverage in cities and rural areas, and minimum QoS (e.g., 20-100 Mbps downlink for 4G/5G). New entrants have lighter targets (200 sites/year). Four performance bank guarantees ($3.75 million each) ensure compliance.
- Other Terms: Technology-neutral licenses; no exclusivity; obligations for efficient spectrum use and national security.
Timeline for the Auction
The IM outlines an indicative timeline starting from its publication on January 9, 2026 (T0):
- Consultation responses: By January 29, 2026 (T0+20).
- Final IM publication: February 4, 2026 (T0+26).
- Information session: February 9, 2026 (T0+31).
- Application deadline (with pre-bid deposit): February 12, 2026 (T0+34).
- Qualified bidders announced: February 17, 2026 (T0+39).
- Bidder seminar: February 18, 2026 (T0+40).
- Mock auction: February 19, 2026 (T0+41).
- Main auction start: February 25, 2026 (T0+47).
- Assignment stage: Post-allocation (TBD).
- Performance guarantees: Within 15 business days of provisional results.
- License grant: After guarantees submitted.
All dates are subject to change, with PTA notifying participants.
PTA Statements and Press Releases
PTA has issued official statements via its website and social media, confirming the IM’s release and emphasizing its role in advancing 5G. No additional press releases were noted beyond the IM and related announcements, but PTA’s communications highlight collaboration with stakeholders like ZTE for 5G training and broader digital initiatives. Industry reports suggest the auction could generate significant revenue while addressing concerns over pricing and infrastructure.
This auction represents a pivotal step for Pakistan’s 5G ecosystem, potentially launching commercial services by mid-2026 if timelines hold. Stakeholders, including mobile operators, are encouraged to participate in consultations for a successful outcome. For the latest, refer to PTA’s official channels.
