• Companies say it must reflect sector’s ‘economic realities’, urge federal cabinet to prioritise long-term benefits over short-term revenue
• Call for pragmatic approach aligned with national objectives
• Zong, Huawei test high-capacity backhaul ahead of 5G rollout
ISLAMABAD: The telecom industry has demanded rational conditions in the spectrum auction policy expected to be announced by the federal cabinet in the coming days, suggesting that the government needs to prioritise long-term economic benefits over short-term revenue generation.
Telecom companies say spectrum is an invisible infrastructure but a crucial one as it drives digital connectivity — the foundation of modern life.
Financial technology adoption, freelancer platforms, and digital tools used by schools and hospitals all depend on mobile broadband capacity.
However, the problem is that while the demand for connectivity has surged in the country, spectrum availability remains scarce.
Currently, Pakistan has just 274 MHz of spectrum allocated nationwide, resulting in slow internet speeds, poor service quality, and limited innovation — constraining households, businesses and government institutions alike.
‘Economic realities’
Aamir Ibrahim, chief executive officer of Jazz, emphasised that Pakistan’s upcoming spectrum auction must reflect the economic realities of the telecom sector.
“Since operators earn in Pakistani rupees, spectrum pricing and payment structures should also be denominated in the same currency to ease financial pressure and accelerate network rollout,” he said in a statement.
Mr Ibrahim added that a pragmatic, long-term approach aligned with national objectives, similar to the PIA auction model, was essential to deliver affordable internet at scale and unlock Pakistan’s digital future.
Greater spectrum availability will also support freelancers, who contributed $400 million in remittances between July 2024 and March 2025 but remain constrained by unstable internet connectivity.
Nearly two-fifths of the country’s adult population remains financially excluded, as digital banking and microfinance services cannot scale without reliable connectivity.
Telecom operators also struggle with an average revenue per user of $1, which is one of the lowest globally, limiting their ability to reinvest in infrastructure.
‘Foundational reform’
The government’s recognition of this bottleneck and its decision to release more than 600 MHz of new spectrum is “therefore as a foundational reform”. It aligns with national digital goals and supports emerging technologies such as AI and the Internet of Things (IoT).
“The issue is no longer whether Pakistan needs more spectrum; it is how the auction is structured to accelerate digital progress,” the statement read. “The GSMA analysis shows that a two-year delay in releasing new spectrum could cost Pakistan $1.8 billion in GDP, while a five-year delay could exceed $4.3bn,” it added.
It warned that a “misaligned policy now means lost jobs, weaker exports and slower innovation”.
Mr Ibrahim stressed that spectrum pricing and policy must reflect domestic realities and national interest. “Clarity on future spectrum availability is essential to restore investor confidence, encourage competition and accelerate infrastructure deployment,” he added.
Rollout obligations, he continued, must prioritise improved customer experience, wider rural access and service quality standards that empower the country’s digital economy.
“These are not concessions but economic enablers that turn spectrum from a one-time revenue stream into a productive long-term national asset,” he said.
“Every additional MHz carries measurable benefits for productivity, innovation, and inclusion.”
Successful test
Meanwhile, as 5G services are set to be launched in Pakistan, Zong and Huawei have successfully tested ultra-high-capacity backhaul technology to meet the growing data traffic in the country.
According to a statement, Zong, in collaboration with Huawei, completed Pakistan’s first field test of a full-duplex E-band microwave link.
With rapidly growing data demand driven by high-definition video streaming, augmented reality, cloud services and low-latency applications, traditional microwave backhaul solutions are facing increasing spectrum constraints.
The full-duplex E-band solution directly addresses these challenges, enabling next-generation network performance.
While the traditional microwave solutions are limited by spectrum resources, the new technology uses high-isolation integrated antenna structures and advanced interference cancellation algorithms to simultaneously send and receive data on the same frequency, double the spectrum efficiency — with a data transmission capacity of up to 50 Gbps per link.
“This innovative technology will be deployed in future network infrastructure, enabling Zong to offer faster, more reliable, and scalable connectivity services, providing users with a smoother and more stable network experience,” the statement read.
Zong’s Chief Technology Officer Mao Weiliang said ultra-high-capacity backhaul solutions were a foundation for Pakistan’s digital future.
“This advancement will support emerging technologies, enhance user experience, and contribute directly to national economic growth and digital inclusion,” Mr Mao added.
The company added that with the successful test, Zong had become the first operator in Pakistan to deploy full-duplex E-band technology, reinforcing its role in the country’s digital transformation.
