Govt Finalizes Base Prices for 5G Spectrum Auction in Pakistan

The federal government has finalized base prices for multiple spectrum bands ahead of Pakistan’s upcoming auction for next-generation mobile services, offering much-needed clarity to telecom operators preparing for 5G expansion.

The prices were approved on the recommendations of the Auction Advisory Committee, following detailed input from an independent international consultant. The move is seen as a key step toward accelerating mobile broadband growth and modernizing Pakistan’s telecom sector.

According to the official policy directive, the base price for 1 MHz of paired spectrum in the 700 MHz band has been set at $6.5 million. Meanwhile, 1 MHz of paired spectrum in the commercially important 1800 MHz and 2100 MHz bands has been priced at $14 million each, reflecting their critical role in enhancing mobile coverage and capacity.

For unpaired spectrum, the government has fixed the base price at $1 million per MHz for the 2300 MHz band, $1.25 million per MHz for the 2600 MHz band, and $0.65 million per MHz for the 3500 MHz band. The 3500 MHz band is widely regarded as a core frequency for 5G services worldwide.

To protect bidders from exchange rate volatility, the spectrum fee will be payable in Pakistani rupees, with the USD-PKR conversion rate locked at the National Bank of Pakistan (NBP) TT selling rate applicable one day before the auction. This mechanism is designed to provide financial certainty throughout the bidding process.

The policy directive also introduces flexible payment options for successful bidders. Operators may either pay the full spectrum fee by the first anniversary of the license award or choose a deferred payment plan.

Under the deferred option, licensees must pay 50 percent of the total fee by the first anniversary, while the remaining amount can be paid in five equal annual installments starting from the second year. The outstanding balance will carry a financing charge calculated at KIBOR plus 3 percent per annum.

For the first installment, the applicable interest rate will be based on the one-year KIBOR rate at the time of license issuance, while subsequent installments will follow the KIBOR rate prevailing on the previous payment date.

Operators will also be allowed to prepay the remaining balance at any time within five years without any penalty, though the applicable interest will continue until full payment is made.

The spectrum licenses awarded through the auction will remain valid for 15 years. The directive further allows spectrum trading and sharing, subject to regulations set by the Pakistan Telecommunication Authority (PTA), giving operators greater operational flexibility.

The announcement marks a significant milestone in Pakistan’s journey toward 5G deployment and is expected to encourage greater participation in the upcoming spectrum auction.

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