The Competition Commission of Pakistan’s (CCP) delay in deciding on the acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) may jeopardize the government’s timeline for launching 5G services, which is scheduled for April 2025, Business Recorder reported.
The status of Telenor’s acquisition remains unresolved, raising concerns among officials and industry sources.
The National Economic Research Associates Inc. (NERA), a U.S.-based consultancy hired by the government for the spectrum auction, has expressed apprehensions regarding the situation. They have recommended that a decision on the number of Cellular Mobile Operators (CMOs) involved in the proposed merger be made promptly.
NERA has also highlighted the issue of the non-availability of the full 194 MHz in the 2.6 GHz band, which is crucial for both LTE/4G and 5G operations. Currently, 140 MHz of this spectrum is under litigation, as discussed in the recent Advisory Committee meeting led by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.
The ongoing litigation on this prime spectrum may hinder the government’s goal of expanding broadband access in Pakistan, as only 54 MHz may not meet the needs of a single operator.
The Pakistan Telecommunication Authority (PTA) contracted NERA on November 5, 2024, to provide consultancy services for releasing IMT Spectrum aimed at enhancing next-generation mobile broadband services. NERA is expected to complete its report and submit recommendations to the auction advisory committee within 60 working days.
However, without the CCP’s decision on the CMOs merger and the unresolved matter of the 140 MHz, NERA may struggle to provide actionable recommendations for the spectrum auction. Once the CCP makes a decision, the matter will be referred to the PTA for regulatory approval, which will then require additional approvals from other authorities such as the SECP and SBP. This entire process could take one to two months.
The recommendations from NERA will be forwarded to the Economic Coordination Committee (ECC) of the cabinet and then to the federal government for final approval regarding auction specifics like reserve prices and timelines. Following this, the PTA will publish an Information Memorandum, requiring an additional 45 to 60 days for CMOs to prepare for the auction.
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In an ideal scenario without objections or court interventions, the auction process would proceed, with spectrum awards and payments expected to take an additional 30 days. Previous administrations had aimed to auction the 5G spectrum by March 2023, with an initial rollout planned for major cities.
