The Pakistan Telecommunication Authority (PTA) has formally announced that it will hold the Next Generation Mobile Services (NGMS) spectrum auction on March 10, 2026, in a historic first of its kind in the history of the digital world of the country. This project is set to achieve the vision of the Digital Pakistan in enhancing the mobile broadband speed nationwide.
Key Timelines and Financial Framework
The auction is already ongoing, and the deadline to submit a bid is strictly defined to be February 27, 2026. The applicants are to provide a bank guarantee of 15 million dollars to participate in the bidding.
Addressing previous industry concerns regarding currency volatility, the PTA has transitioned away from dollar-denominated financial stress. While the auction value is expected to reach between $300 million and $700 million, the government has fixed the exchange rate for the auction date and reduced Right of Way (RoW) charges from Rs. 3,600 to zero to encourage infrastructure investment.
Technical Spectrum Details
The auction will be conducted via a multi-round electronic clock format.
- Available Spectrum: A total of 274 MHz (with some reports indicating up to 597 MHz available across various bands).
- Mandatory Bands: In the initial round, operators must bid for the 2600 MHz and 3500 MHz bands.
- Spectrum Cap: To prevent a monopoly, a cap has been instituted so no single operator can acquire the entire spectrum within a specific band.
- Minimum Requirement: Each participating operator is required to purchase at least 100 MHz.
Robust Rollout and Quality Obligations
The new licenses have been conditioned by the PTA to high-performance standards:
- Infrastructure: Operators will need to roll out 1,000 new locations each year, 200 of which will be in underserved or dark locations.
- Phase One: Initial 5G services will launch in Islamabad and the four provincial capitals.
- Fiberization: There is a mandatory requirement to increase tower fiberization every year to ensure backhaul capacity.
Accessibility and Local Manufacturing
To make the technology affordable, the PTA is promoting the local production of affordable 5G handsets, which are already coming into the market at around 40,000. While the Federal Board of Revenue (FBR) maintains control over mobile taxes, recent rationalization of duties on used and locally manufactured phones is expected to lower the barrier to entry for the general public.
