Islamabad:Zubair kasuri, The delay in the Competition Commission of Pakistan’s (CCP) decision regarding Pakistan Telecommunication Company Limited’s (PTCL) acquisition of Telenor Pakistan could impact the government’s timeline for the launch of 5G services in the country, which is planned for April 2025. The uncertainty surrounding Telenor’s status is causing concerns among officials and industry experts.
Sources reveal that the National Economic Research Associates Incorporation (NERA), an international consultancy firm hired by the government for the spectrum auction, has expressed reservations about the delay. NERA has recommended a swift decision on the number of Cellular Mobile Operators (CMOs) in light of the proposed merger. They have also raised concerns about the unavailability of the full 194 MHz in the 2.6 GHz band, which is crucial for both 4G and 5G services.
The finalization of the Telenor sale to PTCL is now expected in early 2025. However, 140 MHz of spectrum remains under litigation, further complicating the situation. This legal battle over the 140 MHz in the 2600 band, which is considered ideal for 5G rollout, could hinder the government’s broadband expansion plans.
The Pakistan Telecommunication Authority (PTA) hired NERA to consult on the release of IMT spectrum for next-generation mobile broadband services. Although NERA is expected to submit its recommendations within 60 working days, the uncertainty surrounding the CMOs merger and the 140 MHz dispute may prevent them from providing concrete advice on the auction process.
Following the CCP’s decision, the acquisition will require further approvals from the PTA, Securities and Exchange Commission of Pakistan (SECP), and the State Bank of Pakistan (SBP), which could take a considerable amount of time.
The consultant’s recommendations will be reviewed by an advisory committee and then sent to the Economic Coordination Committee (ECC) of the Cabinet. Final approval regarding the base price, the number of bands to be auctioned, and the auction timeframe will come from the federal government. Subsequently, the PTA will publish an Information Memorandum (IM) for potential bidders, which will take another 45 to 60 days.
Mobile phone company representatives have expressed concerns about the current state of the telecom sector in Pakistan. They highlight that investment is at an all-time low due to government actions like internet monitoring, speed throttling, and frequent internet shutdowns. These factors, coupled with existing challenges in 4G coverage and the delay in the Telenor acquisition, are raising doubts about the timely launch of 5G services in Pakistan.
