ISLAMABAD:
Chairman of the Pakistan Telecommunication Authority (PTA) said on Wednesday that spectrum auctions are not conducted in U.S. dollars in any country, noting that Pakistan’s previous auctions were dollar-denominated — a move that created financial strain for telecom operators amid currency depreciation.
“Past auctions were held in dollars, and when the exchange rate increased, operators faced serious challenges,” the chairman said during a briefing, underscoring the need for a more sustainable framework for the telecom sector.
He revealed that 274 MHz of spectrum is currently available for auction, with a minimum purchase requirement of 100 MHz per operator. “It is too early to say how much spectrum will ultimately be sold, but we are hopeful that more than 50 percent will be auctioned,” he said, adding that such an outcome would mark the auction as successful.
Industry Consultation and Policy Shifts
The PTA chief said extensive consultations were held with the telecom industry before finalizing the auction framework. Operators presented their concerns before the Auction Advisory Committee, and eight out of ten key demands were accepted, he noted.
To encourage infrastructure expansion, the government has reduced the Right of Way (RoW) charges from Rs 3.6 million to zero — a step expected to significantly accelerate telecom infrastructure deployment.
Fiberization expansion, however, will be funded directly by telecom operators from their own budgets and not through the Universal Service Fund (USF), the chairman clarified.
Addressing Network Congestion
Acknowledging persistent network congestion, the PTA chief said operators are fully aware of service quality issues. Measures have been incorporated into the auction design to ensure improvements in Quality of Service (QoS) standards across the country.
He expressed optimism that enhanced spectrum allocation would ease congestion and improve consumer experience.
Mobile Taxes and Local Manufacturing
The chairman clarified that taxes imposed on mobile phones fall under the jurisdiction of the Federal Board of Revenue (FBR), not the PTA. He noted that the FBR has recently reduced taxes on used mobile phones.
The PTA has also urged the local industry to begin manufacturing affordable 5G-enabled smartphones. “When new technology arrives, affordable devices will also enter the market,” he said, encouraging manufacturers to prepare for the 5G transition.
The remarks come as Pakistan prepares for a major spectrum auction aimed at modernizing digital infrastructure and boosting service quality in the telecom sector.
