PAKISTAN’S mobile operators need more spectrum, the radio waves that carry voice calls and wireless data, as their present government-rationed spectrum slices are choked, and unable to meet the rapidly growing demand for data. Poor mobile connectivity marked by frequent call drops, and a slower, erratic internet service are only a few of the signs of the existing digital infrastructure falling far behind demand as the authorities fail to make more spectrum available to the operators. If their capacity issues are not addressed, it will become impossible for the telecom operators to keep pace with the demand and improve their deteriorating services.

The GSMA, which represents mobile operators and entities across the mobile ecosystem, says in a new paper that delays in assigning spectrum could lead to significant economic losses, with a two-year delay potentially costing the GDP $1.8bn between 2025 and 2030, and a five-year delay resulting in losses of up to $4.3bn. It has also criticised Pakistan’s spectrum policy that prioritises collection of revenue in massive licence fees over digital transformation. Interestingly, the government has not auctioned additional spectrum since 2014 when Pakistan launched the 3/4G services. Attempts to auction additional spectrum were abandoned or did not succeed because of the unsustainable costs to be paid in dollars. The GSMA says that even past auctions in 2014 and 2021 resulted in unsold spectrum, leading to reduced spectrum supply for telcos and overall significant economic losses. Mobile operators appear indifferent to plans to launch 5G services and auction more spectrum this year, due to the pricing formula that is being seen as “a significant threat to the future development of mobile services”. That said, the government must prioritise digital infrastructure development over revenue generation if 5G services are to be successfully rolled out and the dream of its ‘Digital Pakistan’ initiative is to materialise.

Published in Dawn, February 1st, 2025