Pakistan Telecommunication Authority (PTA) Chairman Hafeezur Rehman on Wednesday said that the much-anticipated 5G spectrum auction would be held on March 10 with plans to roll out services initially in federal and provincial capitals, expanding to other cities in the coming years.

“Improved connectivity is critical to achieving the Digital Pakistan vision,” Rehman said during a media briefing. He also pointed out that the government had eliminated the right-of-way fee, which had previously delayed fibre-optic infrastructure projects.

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“This initiative, supported by the Ministry of IT & Telecom, ensures faster execution of infrastructure projects,” he added.

The PTA chairman explained that telecom operators were well aware of the benefits of early network deployment. “Once licences are issued, operators are unlikely to delay the rollout. They are already preparing business cases and investment plans, which will accelerate deployment,” he stated.

He also noted that operators had already placed orders for 5G equipment, with local manufacturing of 5G-enabled smartphones already underway, with 500,000 to 600,000 units produced so far.

While 5G would be a key focus, Rehman emphasised that the government’s priority remained improving 4G services for the 90% of users currently relying on the technology.

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“In Pakistan, our focus is on enhancing 4G quality. By efficiently utilising available bands, we expect significant improvements in service quality,” he said, drawing comparisons with Bangladesh’s experience with 4G.

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He said operators were given flexibility in spectrum sharing, and certain regulatory terms had been relaxed. Additionally, operators were granted a one-year moratorium on upfront spectrum payments to allow them to focus on improving service quality.

Rehman stated that enhancing 4G connectivity would not only improve user experience but also boost data usage, creating a positive cycle for operators and the broader telecom ecosystem.

“Our goal is to align Pakistan’s progress with regional best practices, while ensuring connectivity and quality for our population,” he said.

Director General Licensing Aamir Shahzad revealed that the auction would follow a multi-round electronic clock auction format, with the first round focusing on mandatory bidding in the 2600 MHz and 3500 MHz bands. Around 597 MHz of spectrum would be made available for bidding.

Rehman further said that applications for the auction must be submitted by February 27, with a $15 million bank guarantee.

Qualified bidders would participate in mock auctions before the main allocation. If demand exceeded supply in any spectrum category, prices would rise in successive rounds.

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The auction would conclude with an assignment stage, and provisional winners would be required to submit performance bank guarantees within 15 business days before licences were granted.

The PTA has set a fixed exchange rate for US dollars to Pakistani rupees for payment purposes and provided operators with the option to pay either 100% upfront or 50% upfront, with the remaining balance paid in five equal annual installments at KIBOR + 3%.

Following the issuance of licenses, 5G services are expected to launch within 3–6 months, starting with federal and provincial capitals. The rollout will then expand gradually to other cities, with operators required to deploy 1,000 new sites annually, including at least 200 sites per year to address coverage gaps.

The PTA also set ambitious targets for service quality improvements. For 4G, minimum download speeds will rise from 20 Mbps in 2026–27 to 50 Mbps by 2030–35, with latency targets reduced from 75 milliseconds to 50 milliseconds. For 5G, the minimum download speeds will increase from 50 Mbps initially to 100 Mbps by 2030–35, with latency targets reduced to 35 milliseconds.