THE sale of 480 MHz of fifth-generation telecom spectrum for $507m is a major milestone in Pakistan’s digital journey. Despite being one of the world’s largest telecom markets by population, the country remains a spectrum-starved market, with consumers facing poor voice and mobile internet connectivity. Even Bangladesh has around 600 MHz of spectrum available, compared with Pakistan’s allocation of just 274 MHz, despite having a smaller population. Unavailability of spectrum has left mobile operators struggling to keep pace with the rapidly growing demand for mobile data and digital services, constraining both user experience and the broader digital economy. The auction therefore represents more than a routine sale. The move is expected to dramatically improve the quality and capacity of existing 3G and 4G networks while enabling telecom operators to begin rolling out 5G services — initially in five major cities within the next four to six months, and subsequently expanding it next year.

Today, internet connectivity is an essential pillar of modern life and economic activity; it underpins every sector — from education and healthcare to commerce and industry. Countries that fail to realise this, risk falling further behind in productivity, innovation and competitiveness. For Pakistan, where nearly 194m mobile subscribers increasingly rely on the internet for work, learning and financial services, a faster and cheaper service has become a necessity. The government’s ambitions to move towards a cashless future also depend on a strong and reliable digital infrastructure. The importance of the spectrum auction must also be seen in the context of Pakistan’s digital divide. Despite a growing number of mobile users, a large proportion of the population still lacks access to dependable, high-speed mobile broadband. Nearly two-fifths of subscribers do not have 4G access, while about a quarter of the population remains without mobile broadband altogether. Expanding spectrum availability and network capacity is critical to bridging these gaps and enabling broader participation in the digital economy. Encouragingly, the government appears to have approached the auction with a long-term perspective. Rather than using spectrum as a revenue-generating asset, the authorities have, unlike in the past, used it as a strategic enabler of economic growth. This will prove to be a turning point for the economy, generating benefits like higher GDP growth, job creation and innovation through greater opportunities.

Published in Dawn, March 12th, 2026