16 January 2026
Pakistan’s spectrum auction: Early insights
Pakistan’s long-awaited next spectrum auction is finally taking shape. On 9 January, the Pakistan Telecommunication Authority (PTA) published the Information Memorandum (IM), confirming the spectrum on offer, reserve prices, coverage obligations and auction design.
After a short consultation period, the auction is now expected in February, marking a pivotal moment for Pakistan’s telecom landscape.
A step-change in spectrum supply
The PTA plans to make nearly 600MHz of spectrum available across six frequency bands, ranging from low-band coverage spectrum (700MHz) to high-capacity 5G mid bands (2300MHz, 2600MHz and 3500MHz). Compared with the existing mobile spectrum holdings, this represents a dramatic expansion of capacity.
Cheap spectrum, expensive obligations
At a first glance, the reserve prices appear low when compared to previous awards in Pakistan and international benchmarks. For example, the reserve price for 1800MHz spectrum is ~2.5× lower than paid Jazz for similar spectrum in 2017. However, operators must also meet various expensive rollout and Quality of Service (QoS) obligations, including:
- 1000 sites per year for the first ten years of the licence duration
- Minimum downlink speeds of 50-100Mbps for 5G
These commitments represent substantial additional expenditure beyond the spectrum auction fees, raising the question whether the business case remains viable in Pakistan’s low-ARPU market.
Auction strategy: who will emerge on top?
Forecasting the competitive dynamics in this auction will be challenging.
In the 700MHz band, the key issue is low-band dominance. PTCL already holds an advantage here, which gives it stronger rural coverage and better indoor signal. Zong and Jazz may view this auction as their chance to rebalance the playing field, while PTCL may aim to preserve the status quo.
In the TDD bands (2300 / 2600 / 3500MHz), the situation is different. There is plenty of spectrum available, so the fight is less about scarcity and more about securing at least 100MHz in one of the bands
The intensity of these preferences will likely determine the outcome. Modest preferences may keep results near reserve prices; strong preferences could make the bands highly competitive.
A bidder-friendly auction design
The PTA is proposing to use a clock auction format with demand retention, known as Enhanced SMRA (ESMRA) format. This format is generally a favourable format for bidders as it:
- Encourages spectrum sharing: Bidders are incentivised to share spectrum at low prices rather than compete aggressively
- Pay-as-bid: Bidders know their exposure at any point during the auction.
- Tried and tested: The format has been used in Australia, UK, Thailand, Slovenia, Canada, and the US, limiting the scope for surprises.
The main disadvantage of this format is that it is somewhat more complex for bidders to understand. In addition, the demand retention rule might cause issues for bidders that would like to switch larger packages between the TDD bands.
The auction also includes an innovative multi-round Assignment Stage, where bidders would bid for relative positions within each band. While this approach could work well if acquired spectrum holdings are broadly symmetric or if there are only two winners within a band, it could prove significantly more challenging if outcomes are asymmetric across bidders.
Summary
Pakistan’s upcoming spectrum auction could reshape the country’s telecom landscape. Nearly 600MHz of spectrum across key 4G and 5G bands will be up for grabs at low reserve prices but with high coverage and QoS obligations. If managed well, the auction could unlock faster networks, wider coverage and a stronger digital economy.
