The government of Pakistan has approved the base prices for the forthcoming 5G spectrum auction.

In an effort to address the increasing demand for high-speed mobile broadband services, which have risen alongside a growing number of broadband subscribers, the Pakistan Telecommunication Authority (PTA) is responsible for overseeing the auction. As per the policy directive, the PTA will auction a total of 15 MHz of paired spectrum in the 700 MHz band and 50 MHz of unpaired spectrum across the 2300 MHz, 2600 MHz, and 3500 MHz bands.

The base price for 1 MHz of paired spectrum in the 700 MHz band is established at USD 6.5 million, while the price for 1 MHz of paired spectrum in the 2100 MHz band is set at $14 million. Additional base prices include USD 1 million for 1 MHz of unpaired spectrum in the 2300 MHz band, $1.25 million for the 2600 MHz band, and $0.65 million for the 3500 MHz band.

The auction will adhere to a process designed to ensure transparency, allowing both existing and new cellular mobile operators to participate. Moreover, the PTA will create an information memorandum that outlines eligibility criteria, auction procedures, and the technology requirements for participants. This auction aims to be technology-neutral, facilitating the deployment of advanced mobile technologies such as 5G.

Being technology-neutral indicates that the spectrum available for auction is not limited to 5G technology alone, but can also be utilized for any future mobile technology, including 4G, 5G, or even 6G, provided that the technology aligns with Pakistan’s regulatory framework and international communications standards.

A one-year moratorium will be granted to the auction winners, during which no payments will be required. Payment terms following this period will offer both upfront payment options and a deferred payment structure, with interest calculated based on the Karachi Interbank Offered Rate.

The measures specified in the directive include encouraging local smartphone manufacturing and enhancing infrastructure to support quicker 5G adoption.