The Auction Advisory Committee has formally decided to approach the federal government for intervention in the delayed Telenor-Ufone acquisition deal, citing its direct impact on the upcoming 5G spectrum auction in Pakistan.
The delays in finalizing the transaction have created regulatory and competitive uncertainty, which could hinder Pakistan’s telecom market evolution and the introduction of 5G services.
Senior officials from the Pakistan Telecommunication Authority (PTA) and the Ministry of Information Technology and Telecommunication attended the session to discuss the nation’s preparedness for the 5G rollout.
PTA Highlights Challenges in Conducting 5G
The Pakistan Telecommunication Authority (PTA) provided a comprehensive briefing on the status of the 5G spectrum auction. The briefing included an analysis of ongoing regulatory obstacles, unresolved acquisitions, and litigation issues that continue to impede progress.
In November 2024, PTA engaged an international consultant to conduct a thorough market assessment and devise an auction strategy that ensures a competitive and sustainable 5G ecosystem in Pakistan.
The Competition Commission of Pakistan (CCP) has not yet reached a final decision on the merger, leading to uncertainty regarding market structure and the number of telecom operators that will participate in the auction.
The PTA emphasized that this unresolved issue makes it difficult to determine whether the telecom sector will continue with three or four major players.
Legal Disputes Over Spectrum Bands Hinder Progress
Two key spectrum bands, the 2600 MHz and 1800 MHz, remain entangled in prolonged legal battles, creating further complications for the auction process.
- The 2600 MHz band, a prime frequency for 5G deployment, has been in legal dispute since 2007.
- The 1800 MHz band, also critical for 5G network expansion, is subject to ongoing litigation.
These legal obstacles are delaying crucial regulatory decisions and could prevent the seamless allocation of spectrum to telecom operators eager to invest in next-generation connectivity solutions.
The Competition Commission of Pakistan (CCP) has already completed its Phase I review of the Telenor-Ufone merger, concluding that the acquisition could significantly reduce market competition.
In June 2024, PTCL finalized loan agreements with an International Finance Corporation (IFC)-led consortium to obtain $400 million in financing.
