Govt holds 600 MHz spectrum auction for 5G rollout

• Govt expected to generate $300 to $700m via auction: sources.
• Mandates participants to acquire the 3500 MHz, 2600 MHz bands.
• Also introduces four new bands in current auction process.

ISLAMABAD: The government has fulfilled major demands of the cellular operators, and all three companies are now participating in the spectrum auction underway for the launch of 5G technology.

The mock exercise with three participants, reported The News, including Jazz, Zong and Ufone, was successfully conducted, during which all the parties expressed confidence in the process.

In a background briefing held a day earlier, Minister for IT and Telecom Shaza Fatima stated that the government had provided a level playing field to major contenders in order to create a win-win situation for them.

She said that the major demands of the telecom operators had been accepted, which would help reduce their financial burden. The government, according to sources, is expected to generate approximately $300 million to $700 million through the spectrum auction.

There will be different rounds of bidding, which may continue for several rounds, an official said. A 274 megahertz (MHz) of spectrum had been running the entire system in the country, leading to network congestion, the minister said, adding that the priority of the government was to enhance both the quality and coverage of 4G, while 5G coverage will also commence after the auction.

The government, she said, is offering 600 MHz of spectrum, and four new bands have been introduced in the current auction process, while the telecos are bound to acquire at least 100 MHz each. "With a minimum of 300 MHz to be acquired by the telecos, the availability of spectrum in the system will be doubled," she added.

In order to ensure that all three telecom operators enter the 5G service, the spectrum auction policy has made it mandatory for the participants to acquire the 3500 MHz and 2600 MHz bands, as these are essential to operate the 5G service.

The 700 MHz band has also been offered for the first time. It is essential for long-distance coverage and will help provide basic telephony services in populated areas.

Pakistan Telecommunication Authority (PTA) Chairman Hafeez ur Rehman said the auction would be conducted digitally, and the three telecos had expressed satisfaction with the auction process.

"There is no objection from any of the three telecom companies regarding the software being used for the auction process," he said, adding that there was no need for the entry of a new telecom company in Pakistan.

He was of the view that several policies introduced by the PTA would help introduce telecom services to localised areas in the coming months and years.