Pakistan’s telecom operators have raised strong objections to the Pakistan Telecommunication Authority’s Information Memorandum (IM) for the upcoming 5G spectrum auction, warning that the proposed rollout obligations are commercially unrealistic for a low-ARPU market.
Issued under a federal policy directive, the IM outlines the regulatory framework for launching 5G services. While PTA describes it as a roadmap for next-generation connectivity, industry leaders argue that its assumptions are disconnected from Pakistan’s economic and market realities.
Under the IM, each operator would be required to deploy at least 1,000 new cell sites annually. Industry sources say this translates into infrastructure investments of $150–200 million per operator every year for the next five years, covering radio access networks, fibre backhaul, power systems, and site acquisition.
Crucially, this capital burden comes on top of the spectrum price itself.
Executives say such obligations make no viable business case in a market where average revenue per user remains among the lowest in the region. “This IM does not make a business case,” a senior telecom executive told Business Recorder, adding that the framework must be revisited.
Operators have urged the regulator to tweak the IM to reflect commercial realities, warning that without recalibration, the proposed model risks stalling investment rather than accelerating Pakistan’s 5G future.
