Telecom operators raise serious concerns over PTA’s Information Memorandum

Telecom operators raised serious concerns over Pakistan Telecommunication Authority’s (PTA) Information Memorandum (IM) for the proposed 5G spectrum auction, while saying each operator would require to invest an estimated $150 million annually in network infrastructure to meet rollout obligations which is over and above the spectrum price—a burden that does not make a viable business case in Pakistan’s low average revenue per user (ARPU) market.

The concerns emerged as PTA issued the IM in line with a policy directive of the federal government, marking a key regulatory step toward the launch of fifth-generation mobile services in the country.

While the regulator has termed the IM a roadmap for next-generation connectivity, industry executives argue that its assumptions are detached from commercial realities.

According to the IM, telecom operators will be required to undertake aggressive rollout obligations, including the installation of at least 1,000 new cell sites every year.

Chief Executive Officer (CEO) Jazz,Aamir Ibrahim, also confirmed to Business Recorder while saying that each operator would be required around 150 million to 200 million dollars investment in infrastructure per annum during the next five years for 5G.

This amount is above the spectrum price, as per the proposed IM, which doesn’t make any business sense for operators.

He further said that IM would need to be tweaked.

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Officials from other operators also said that this requirement alone implies massive capital expenditure on radio access networks, fibre backhaul, power systems and site acquisition, pushing annual infrastructure spending close to $150 million per operator, even before accounting for spectrum acquisition costs.

“This IM does not make a business case,” a senior telecom executive told Business Recorder.

“With one of the lowest ARPUs in the region, operators simply cannot justify investing $150 million every year in infrastructure, on top of spectrum fees, without a realistic path to returns.”

Under the proposed framework, PTA plans a phased launch of 5G services, starting with Islamabad and all four provincial capitals. The IM further mandates that operators migrate at least 10 percent of their existing towers to 5G technology in these cities during the initial phase.

In parallel, the regulator has tightened quality-of-service benchmarks across the sector. The minimum 4G speed requirement has been raised sharply from 4 Mbps to 20 Mbps, while fixed broadband operators will be required to increase minimum speeds from 4 Mbps to 10 Mbps within the first year of implementation. For 5G, the IM sets a minimum speed requirement of 50 Mbps.

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PTA says these measures are aimed at ensuring that consumers see tangible improvements in service quality and that 5G deployment supports Pakistan’s digital economy, innovation and advanced applications.

Telecom operators, however, say the IM overlooks the financial stress already facing the sector. Despite rapid growth in data usage, revenues have remained under pressure due to low tariffs, high taxes, rising energy costs and currency depreciation.

Industry insiders are urging PTA and the government to further tweak the IM to make the auction commercially viable.

PTA plans to offer a total of 597.2 MHz of spectrum across six frequency bands, making it one of the largest spectrum offerings in Pakistan’s telecom history. Telecom companies have been asked to submit their feedback and suggestions on the IM.
PTA has indicated that the final Information Memorandum will be issued after, incorporating stakeholders’ input before moving ahead with the auction.