ISLAMABAD: The delay in Competition Commission of Pakistan’s (CCP) decision regarding acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) may impact the timelines set by the government for launch of the 5G in the country, which is planned by April 2025, whereas, status of Telenor is yet to be decided.
This was revealed by officials and industry sources while talking to Business Recorder. The National Economic Research Associates Inc (NERA) - United States-based international consultancy firm hired by the government for the spectrum auction had already expressed concerns in this regard and recommended that decision as to the number of CMOs (e.g. given the proposed merger) should be resolved as soon as possible.
The NERA also raised questions on the on non-availability of full 194 MHz in 2.6 GHz band - the most attractive band for the Cellular Mobile Operators as its supports both LTE/4G as well as 5G.
Closing transaction for Telenor’s sale to PTCL likely now early 2025
However, 140 MHz is still under litigation as discussed in the last Advisory Committee meeting, which is overseeing, the Release of IMT Spectrum for Improvement of Next Generation Mobile Broadband Services in Pakistan chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.
The litigation of 140 MHz in the 2600 band - the most suitable for launch of 5G in the country, may not bring full potential desired by the government to increase broadband proliferation in the country, as mere 54 MHz in this prime band, may not be suffice the requirement for a single operator even.
The PTA acquired consultancy services of NERA for “Release of IMT Spectrum for Improvement of Next Generation Mobile Broadband Services in Pakistan” and signed a contract on 5th November 2024. As per the terms of reference, the NERA is supposed to complete the report and submit recommendations to the auction advisory committee in 60 working days.
However, in the absence of CCP’s decision regarding CMOs merger as well as unresolved matter of 140 MHz, the NERA may not be able to provide concrete recommendations to the government of Pakistan to move ahead for conduct of auction. After CCP’s decision in the acquisition case, the matter would be referred to the PTA for regulatory approval, and would further be approved by other regulatory authorities such as the SECP and SBP after the approval of PTA. This entire process may take considerable time i.e. at least one to two months.
The recommendations of the consultant would be sent to the Economic Coordination Committee (ECC) of the cabinet by the advisory committee and then to the federal government for approval by the cabinet in relation to the reserve price of the band, number of bands to be auctioned, timeframe of the auction etc. The PTA, after this, would publish Information Memorandum (IM) and which at least requires 45 to 60 days for Cellular Mobile Operators and there management to understand rules of auction, decisions on investment etc thus, completion of the process as per timelines. Later, auction would be held and spectrum award and payment would take 30 days as per past precedence. All the deadlines given are a sort of ideal situation where no objection or court intervention is included.
The previous two governments had planned to auction the 5G spectrum latest by end of March 2023 in the country with the initial launch in big cities.
Copyright Business Recorder, 2025
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