Ufone and Zong pony up US$30m to play in Pakistan’s 5G spectrum auction

PTCL’s Ufone and China Mobile Pakistan (Zong 4G) have each deposited US$15 million with the Pakistan Telecommunication Authority to qualify for participation in the country’s upcoming 5G spectrum auction, according to local reports.

The pre-bid deposits were submitted ahead of the PTA’s February 27 deadline and are mandatory for auction eligibility. Veon-owned Jazz is also expected to submit its US$15 million deposit before the deadline.

A total of 597 MHz of spectrum will be auctioned across the 700 MHz, 2300 MHz, 2600 MHz, and 3500 MHz bands. Although the auction was initially scheduled for late February, it has now been pushed to March 10.

The long-awaited 5G auction has faced multiple delays over the past few years, including regulatory considerations and the completion of the PTCL-Telenor Pakistan merger, which was finalized earlier this year.

The PTA has indicated that the auction will only be deemed successful if at least 300 MHz of the available spectrum is sold. Authorities are targeting proceeds exceeding US$634 million, depending on bidding intensity and final price discovery.

However, concerns remain regarding the financial sustainability of rapid 5G deployment. Under the PTA’s directive, operators must roll out 1,000 new sites annually and upgrade 10 percent of their existing towers to 5G within the first year. Additionally, telcos are required to invest between US$150 million and US$200 million per year in network expansion, excluding spectrum fees.

Despite these challenges, operators have begun preparing for commercial 5G. Zong recently signed an MoU with ZTE and its local distributor Siccotel to introduce affordable 5G smartphones in Pakistan. It has also announced a strategic partnership with Samsung for the Galaxy S26 Series, which launched globally this week.

The deposits signal that Pakistan’s major operators are positioning themselves for the next phase of mobile evolution, even as questions persist over cost recovery and return on investment.