PTA Raises $507 Million From Historic Spectrum Auction
Pakistan has completed the third round of the 5G spectrum auction organized by the Pakistan Telecommunication Authority (PTA), generating $507 million in revenue as part of the country’s efforts to introduce next-generation internet services.
Pakistan Completes Third Round Of 5G Spectrum Auction
The auction process was launched in Islamabad by Federal Minister for Finance Muhammad Aurangzeb, Federal Minister for Information Technology Shaza Fatima, Federal Minister for Information Atta Tarar, and PTA Chairman Major General (Retired) Hafeez ur Rehman. During the process, the PTA offered 600 megahertz of spectrum for bidding to support the rollout of 5G internet services.
Initially, the auction is aimed at enabling the introduction of 5G services in five major cities across Pakistan. Three telecom companies that qualified for the bidding process participated in the auction.
Telecom Companies Acquire Major Spectrum In 5G Auction
The first round of the auction concluded with the release of the initial results. In the first phase, the 2600 megahertz band included 190 megahertz of spectrum, while demand exceeded supply by 110 megahertz. Following this demand, authorities increased the spectrum price by five percent in the next phase.
During the first stage, the 3500 megahertz band had 280 megahertz of available spectrum, while demand reached 200 megahertz, reflecting strong interest from participating telecom companies.
The second round of the auction was also completed, with Director General Licensing Amir Shahzad announcing the results. According to officials, some bidders switched from the 2600 megahertz band to the 700 megahertz band during the process. Authorities noted that the number of available lots in the 2600 megahertz band remained higher, but demand continued to exceed supply, prompting a further increase in prices.
The third round of the 5G spectrum auction concluded with significant participation from telecom operators. Out of a total of 597 megahertz spectrum offered, 480 megahertz was sold.
Government Calls 5G Auction Milestone For Digital Economy
PTA Chairman Major General (Retired) Hafeez ur Rehman announced that all available lots in the 2300 and 2600 megahertz bands were successfully booked. In the 3500 megahertz band, 22 out of 28 available lots were sold during the auction process.
Telecom companies participating in the auction purchased large portions of spectrum. Zong acquired 110 megahertz, Ufone secured 180 megahertz, and Jazz purchased 190 megahertz of spectrum during the bidding.
The PTA chairman confirmed that the auction generated a total of $507 million. He added that further discussions regarding the next stage of the process will take place during a meeting scheduled for Thursday.
Read Also ; Pakistan Set To Auction 600 MHz Spectrum Nationwide
Addressing the ceremony, Federal Finance Minister Muhammad Aurangzeb described the day as an important milestone for Pakistan’s information technology sector. He said the government is taking measures to strengthen the country’s economy while also implementing energy conservation initiatives in light of the regional situation.
Spectrum Auction Expected To Boost Pakistan IT Exports
Aurangzeb stated that the government had successfully created a complete ecosystem to conduct the 5G spectrum auction. He said the introduction of 5G technology would support multiple use cases, including emerging sectors such as blockchain and artificial intelligence.
He added that the spectrum auction would contribute to an increase in Pakistan’s IT exports and improve digital connectivity. The minister also referred to recent government announcements encouraging online classes and remote work, noting that improved connectivity and spectrum availability are essential for such initiatives.
Federal Minister for Information Technology Shaza Fatima said the introduction of 5G services marks a significant step for Pakistan’s digital future. She noted that information technology plays a crucial role in the modern world and that internet connectivity forms the foundation of Pakistan’s digital economy.
Fatima said Pakistan had previously operated with only 274 megahertz of spectrum, while the current process represents the largest spectrum auction in the country’s history. She added that improvements in 4G services are expected soon, while 5G services could become available in major cities within six months.
Speaking at the event, PTA Chairman Hafeez ur Rehman said spectrum availability had been one of the country’s biggest challenges. He credited the PTA and the Frequency Allocation Board for facilitating the availability of spectrum required for the auction.
He said the introduction of 5G internet services would expand access to advanced connectivity in remote areas of the country, although electricity load shedding remains a major challenge for internet service delivery.
