The Pakistan 5G spectrum auction, long anticipated as a turning point for the country’s digital infrastructure, is now expected to face a delay of at least four months. The setback is largely attributed to prolonged regulatory uncertainty surrounding the proposed merger between Telenor Pakistan and PTCL’s Ufone, which remains unresolved at the Competition Commission of Pakistan.

This indecision has created confusion over the final structure of the telecom market and raised serious questions about which operators will be eligible to participate in the auction.

Regulatory Gridlock Slows Pakistan 5G Spectrum Auction

At the center of the delay is the CCP’s ongoing Phase II review of the Telenor-PTCL merger, a process that began after the application was formally submitted in February 2024. Without clarity on whether the merger will be approved, regulators are unable to finalize auction terms, including the number of spectrum lots and potential bidders.

Industry insiders note that the Pakistan 5G spectrum auction cannot move forward until the competitive landscape is clearly defined, as auction design depends heavily on how many operators will remain active in the market.

Policy Inaction Compounds the Delay

Officials at the Ministry of Information Technology confirm that the launch of commercial 5G services requires at least three months after the government issues final auction policy directives. However, the advisory committee responsible for guiding this process has yet to convene its first formal meeting.

The absence of timely policy decisions has further stalled the Pakistan 5G spectrum auction, despite technical preparations being largely complete. Analysts warn that without political urgency, delays could stretch even further into late 2025.

Geopolitical Pressures Add to Uncertainty

Beyond domestic regulatory issues, rising regional tensions have also slowed momentum. Escalating hostilities between Pakistan and India have diverted government attention toward national security priorities, pushing digital infrastructure planning lower on the agenda.

These external pressures have indirectly affected the Pakistan 5G spectrum auction by delaying inter-ministerial coordination and slowing approvals required to move the process forward.

Related: Unlocking Pakistan’s digital potential: Why a smarter approach to 5G is needed

Technical Readiness Meets Policy Paralysis

The Pakistan Telecommunication Authority has confirmed that the international consultancy hired to prepare for 5G has completed a comprehensive report. The study evaluates multiple auction scenarios, including outcomes with three or four mobile network operators, depending on the merger decision.

Despite this readiness, the Pakistan 5G spectrum auction remains frozen due to the lack of formal policy endorsement. Experts describe the situation as a case where execution capacity exists, but governance bottlenecks prevent progress.

Missed Timelines and Industry Frustration

The federal government initially planned an aggressive rollout, aiming to introduce 5G services by June 2025. The timeline included policy finalization by March, auction directives in April, spectrum bidding in May, and service launch in June.

With mid-year approaching and no advisory progress, the Pakistan 5G spectrum auction is now widely viewed as off-track. Telecom operators have expressed frustration, warning that prolonged uncertainty undermines investor confidence and long-term planning.

Merger Stakes Impact Pakistan 5G Spectrum Auction

Both Telenor and PTCL have publicly criticized regulatory delays, arguing that the unresolved merger is holding the entire sector hostage. PTCL has pledged a billion-dollar investment tied to the merger and has sought intervention through national investment facilitation channels.

The fate of the Pakistan 5G spectrum auction is increasingly tied to this decision, as the merger outcome will determine market competition, spectrum pricing, and rollout speed.

Why the Delay Carries Strategic Risk

Experts caution that postponing the Pakistan 5G spectrum auction places the country at risk of falling behind regional peers that are already expanding advanced connectivity. Without timely 5G deployment, Pakistan could miss out on gains in industrial automation, smart cities, digital health, and foreign tech investment.

As the digital economy becomes a core driver of growth, continued delays threaten to widen the technological gap. The Pakistan 5G spectrum auction is no longer just a telecom issue it has become a test of regulatory efficiency and national digital ambition.