Telcos Set Prerequisites for Pakistan’s 5G Deployment

Telecom operators in Pakistan are gearing up for the 5G era but are calling for critical policy adjustments before the rollout. Their demands include lower taxation, staggered payment plans, and local currency spectrum payments to ensure a sustainable framework for next-gen technology.

NERA’s Involvement: Crafting Pakistan’s 5G Strategy

The Pakistan Telecommunication Authority (PTA) has engaged National Economic Research Associates Inc. (NERA) to address these concerns and draft a policy roadmap for 5G spectrum allocation. NERA’s role includes analyzing the sector’s financial landscape, recommending innovative auction models, and creating investor-friendly frameworks.

NERA’s consultations with telecom stakeholders have highlighted pressing issues, from spectrum availability in the 2600 MHz band to the impact of economic challenges like declining revenues and inflation.

Key Concerns Raised by Industry Players

• Spectrum Availability: Operators have flagged the insufficient allocation of the 2600 MHz band, which is vital for 5G.
• Economic Viability: Calls for 15-year staggered payments and tax reductions reflect the industry’s efforts to attract long-term investments.
• Regulatory Recognition: Operators stress the need for telecom to be formally recognized as an industry to unlock fiscal incentives.

Voices from the Industry

Jazz’s Mudassar Hussain pointed out that addressing sector challenges must precede any auction framework, saying, “Resolving these issues is critical for ensuring viable network rollouts and attracting investments in 5G technologies.”

Similarly, Telenor Pakistan’s Shan Ul Haq emphasized the importance of balanced policies: “For 5G to thrive, we need frameworks that encourage sustainable growth while benefiting consumers.”

Balancing 4G and 5G Goals

While 5G remains a priority, telcos continue to advocate for strengthening 4G infrastructure to bridge connectivity gaps and tackle declining revenues. The sector’s focus remains on creating a stable foundation for future advancements, ensuring that 5G is launched under favorable conditions.

Future of Pakistan’s Telecom Sector

As stakeholders await NERA’s recommendations, there’s growing anticipation for reforms that could transform Pakistan’s telecom landscape. With global best practices and local realities in mind, the path to 5G promises to reshape connectivity, innovation, and economic growth.