ISLAMABAD: Pakistan's Economic Coordination Committee approved recommendations Tuesday for the country's largest spectrum auction. The 600-megahertz sale, officials said, will ease chronic internet congestion and introduce 5G technology.

The proposals on spectrum pricing, payment terms, and auction design will now go before the Cabinet for final approval before the Pakistan Telecommunication Authority can issue an Information Memorandum to begin stakeholder consultations, IT and Telecommunication Minister Shaza Fatima Khawaja said at a joint press conference with Finance Minister Muhammad Aurangzeb.

Aurangzeb stated that the committee examined the recommendations through a "Pakistan first" lens.

The proposals will now go before the Cabinet before the Pakistan Telecommunication Authority issues an Information Memorandum to begin stakeholder consultations, the IT minister said.

“The auction is expected to conclude by the end of January or early February,” Shaza Fatima said.

The IT minister stated that Pakistan currently operates its internet services on 274 MHz of spectrum. “Bangladesh, with two-thirds of Pakistan's population, operates on 600 MHz,” she said. She compared the situation to "forcing traffic meant for eight lanes from just two lanes."

The upcoming auction will offer 600 MHz across previously existing bands and new bands being auctioned for the first time in Pakistan, according to the IT minister. Previous spectrum auctions in 2014, 2016, and 2021 acquired a total of 60 MHz, she said.

The IT minister stated that the new spectrum allocation will improve 3G and 4G quality and enable 5G services for the first time. The government will require telecom operators to complete network rollouts within four to six months, with the Pakistan Telecommunication Authority monitoring compliance.

Shaza Fatima outlined several government initiatives, including the recently legislated Destination Pakistan Act and the upcoming Connect 2030 plan, which aims to provide average internet speeds of 100 megabits per second.

The government has discontinued "right of way" charges. Currently, less than 5% of the country has fiber optic connectivity, which the government plans to improve over the next three to five years, she said.

The IT minister stated that the 3,500 MHz band being auctioned will enable fixed wireless access technology, which allows telecom operators to deliver high-speed internet to homes and businesses using wireless signals instead of physical fiber optic cables. She said this technology can be deployed more quickly than installing physical infrastructure in areas where fiber optic coverage is currently unavailable.

The government has finalized a spectrum sharing policy and plans to approve a Mobile Virtual Network Operator policy at the next Cabinet meeting. The MVNO policy would allow more mobile brands to enter the Pakistani market, she said.

Shaza Fatima said internet infrastructure forms the foundation for the government's broader digitalization efforts under Prime Minister Shehbaz Sharif's administration. This includes the digital transformation of the Federal Board of Revenue. She said reliable internet connectivity was necessary for the entire digitalization process.

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Pakistan plans largest-ever spectrum sale to launch 5G, fix ‘internet congestion’