Islamabad — Pakistan took a major step toward launching 5G mobile services by approving base prices for the upcoming spectrum auction, a key milestone in the country’s digital transformation strategy. This decision gives telecom companies clarity on costs before they bid for radio frequency bands essential to rolling out next-generation connectivity nationwide.

The government has priced multiple frequency bands that will be offered at auction, with paired and unpaired spectrum bands carrying different base prices based on their coverage, capacity, and commercial value. For example, the 700 MHz band known for wide reach was set at $6.5 million per MHz, while higher-capacity bands such as 1800 MHz and 2100 MHz command $14 million per MHz. Among unpaired bands crucial for 5G, prices range from $0.65 million to $1.25 million per MHz.

To protect bidders from foreign exchange risk, the government has also decided that fees will be collected in Pakistani rupees, locking the exchange rate at the National Bank’s selling rate before the auction. This move is meant to give operators predictable financial planning and encourage wider participation.

Under the policy, telecom companies will have flexible payment plans. Winners can pay the full spectrum fee within a year, or choose a deferred payment option, covering half upfront and the rest over five annual instalments. Interest will be calculated at KIBOR + 3% on any unpaid amount.

The Pakistan Telecommunication Authority (PTA) — the regulator tasked with managing the auction — will issue a detailed Information Memorandum outlining eligibility requirements, bidding procedures, and rollout conditions. Both existing mobile operators and new entrants will be able to participate, with defined spectrum caps to promote fair competition.

Officials say this transparent auction framework aims to attract fresh investment, expand network capacity, and help Pakistan catch up in mobile broadband adoption. Currently, Pakistan operates on limited spectrum compared with regional peers, a factor that has constrained internet performance and delayed 5G introductions.

Industry players have welcomed the move but raised concerns over pricing in U.S. dollars, warning that it could impose financial strain if exchange rates shift sharply. Telecom leaders have urged careful planning to balance affordability with network development costs.

Once the auction concludes — expected by mid-February 2026 — winners will be obligated to roll out services within specified timelines. Analysts predict that 5G networks could start appearing in major cities such as Karachi, Lahore, and Islamabad within months, boosting service speeds and laying the foundation for future technologies like IoT and smart infrastructure.