Telecom Operators Demand Supportive Policies for 5G Rollout in Pakistan
Telecom Industry Calls for Flexible Policies for 5G Success
As Pakistan prepares for its 5G revolution, telecom operators have outlined key demands, including flexible payment terms, reduced tax rates, and adequate spectrum allocation in the 2600 MHz band. These measures, they argue, are crucial for ensuring the successful deployment of next-generation connectivity.
NERA’s Role in Shaping 5G Policies
To navigate these complexities, the Pakistan Telecommunication Authority (PTA) has enlisted the consultancy firm National Economic Research Associates Inc. (NERA). NERA is tasked with crafting a comprehensive policy framework for 5G spectrum allocation, aligning it with global best practices while considering Pakistan’s unique market dynamics.
The consultancy is actively engaging with key industry players to address critical challenges, including the sector’s financial health, investment barriers, and spectrum auction strategies. NERA’s recommendations will play a pivotal role in shaping Pakistan’s 5G roadmap, fostering innovation and economic growth.
Core Demands of Telecom Operators
- Local Currency Payments: Operators seek relief from the volatility of exchange rates by proposing spectrum payments in Pakistani Rupees.
- Staggered Payment Plans: A 15-year installment model with moratoriums on initial payments has been requested to ease financial strain.
- Tax Reductions: High telecom taxes remain a major hurdle. Reducing these rates is seen as essential for sustainability and growth.
- Sufficient Spectrum Allocation: Operators have raised concerns over the inadequate availability of spectrum in the 2600 MHz band, crucial for seamless 5G performance.
Industry Voices on the Need for Reform
Industry leaders emphasize the importance of addressing sector challenges before launching 5G. Mudassar Hussain, Head of Public Policy at Jazz, highlighted the need for foundational reforms to ensure sustainable growth, stating, “Sector challenges must be resolved before establishing an auction framework.”
Similarly, Shan Ul Haq, SVP at Telenor Pakistan, stressed the importance of investor-friendly policies: “Balanced, forward-looking policies are vital to encourage sustainable industry growth and future broadband investments.”
4G Challenges Persist as 5G Looms
Despite the 5G excitement, operators continue advocating for a “4G for all” approach to address connectivity gaps, declining revenues, and currency depreciation. Without resolving these issues, industry leaders caution that 5G’s potential could remain unrealized.
