5G Auction Faces 4-Month Delay Due to Telenor-PTCL Merger Uncertainty

Pakistan’s much-anticipated 5G spectrum auction is expected to be delayed by at least four months, primarily due to the Competition Commission of Pakistan’s (CCP) indecision on the proposed merger between Telenor Pakistan and PTCL-owned Ufone. The delay has created uncertainty about the number of telecom operators that will be eligible to participate in the next-generation spectrum auction. According to sources in the Ministry of Information Technology, the launch of 5G services will require at least three months after the government finalizes and issues the policy directives for the auction. However, the advisory committee responsible for guiding the auction process has yet to convene due to regional geopolitical tensions and escalating hostilities between Pakistan and India. The Pakistan Telecommunication Authority (PTA) has confirmed that the international consultant hired for 5G has completed its work. The comprehensive report submitted considers various scenarios, including the possible participation of either three or four operators, depending on the outcome of the Telenor-PTCL merger. While the technical groundwork for the auction is ready, the absence of policy direction is stalling progress. The federal government had earlier set a roadmap for launching 5G services by June 2025. The plan involved finalizing policy reforms in March, issuing a policy directive in April, conducting the auction in May, and rolling out commercial 5G services by June. With mid-May already passed and no movement from the advisory committee, the timeline now appears unrealistic. PTCL has criticized the CCP for unnecessary delays, as the merger application submitted on February 29, 2024, remains under Phase II scrutiny. PTCL has proposed $1 billion investment and sought assistance from the Special Investment Facilitation Council (SIFC) to move the process forward. The ongoing regulatory uncertainty continues to obstruct the finalization of key 5G policy reforms, putting the country’s digital rollout plans at risk.