Major Demands by Telcos and GSMA Ahead of Pakistan 5G Auction

In a significant development ahead of Pakistan’s much-anticipated 5G spectrum auction, leading telecom operators and the GSM Association (GSMA) have jointly presented a set of key demands to the government. These demands aim to create a favorable regulatory environment and ensure the successful rollout of 5G services across the country.

Telecom companies in Pakistan have been facing rising operational costs, high taxation, and declining revenues due to economic instability and currency devaluation. Experts believe that without addressing these issues, the 5G rollout could face serious delays.

The GSMA, which represents mobile operators globally, has emphasized that Pakistan needs to create an investor-friendly environment if it wants to compete regionally and ensure seamless 5G adoption.

• Affordable Spectrum Pricing – Operators have requested the government to reduce spectrum prices to make 5G deployment financially viable.

• Tax Relaxations – Calls for lower withholding taxes, reduced customs duties, and exemptions on 5G-related equipment imports.

• Infrastructure Support – Demands for right-of-way (RoW) reforms to speed up tower installations and fiber optic expansion.

• Stable Policy Framework – Telcos seek a long-term, transparent policy to attract investments and ensure industry stability.

• Energy Cost Subsidies – As rising power tariffs burden operators, telcos are demanding relief on electricity costs to sustain network operations.

A senior GSMA representative stated:

“For Pakistan to realize the true potential of 5G, the government must adopt policies that encourage investment and support the telecom industry through this transition.”

Similarly, executives from leading telcos stressed that high spectrum costs and heavy taxation could discourage investment and slow down 5G adoption in Pakistan.

If the demands are met, experts believe Pakistan could witness:

• Faster 5G rollout and improved digital infrastructure

• Enhanced connectivity for businesses and consumers

• Boost to the digital economy and innovation ecosystem

• Increased foreign investments in the telecom sector

However, if ignored, Pakistan risks falling behind regional peers like India and Bangladesh, which are rapidly expanding their 5G coverage.

The move has sparked mixed reactions. While industry experts and businesses welcome the demands as necessary for growth, some analysts argue that reduced spectrum pricing could affect government revenues. Citizens, on the other hand, are eager for better internet speeds, provided that data costs remain affordable.

As Pakistan prepares for its first-ever 5G spectrum auction, the government faces a critical decision: balance revenue generation with industry sustainability. Meeting the demands of telcos and GSMA could accelerate 5G adoption, strengthen the digital economy, and transform Pakistan’s connectivity landscape.

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