Pakistan set for 5G launch by mid-August despite low handset availability

ISLAMABAD: Telecom operators are preparing to begin the commercial rollout of 5G services across Pakistan by mid-August, even as the availability of compatible handsets remains limited, according to officials from the IT and telecom ministry and industry representatives.

The planned launch follows the government’s 5G spectrum auction held in March this year, in which spectrum worth $507 million was sold to support faster and better-quality mobile internet services. The government sold 480 MHz of spectrum in total, short of its original target of 597 MHz.

According to the Pakistan Telecommunication Authority (PTA), the auction included the sale of two lots in the 700 MHz band, all five lots in the 2,300 MHz band, all 19 lots in the 2,600 MHz band, and 22 out of 28 lots in the 3,500 MHz band.

Three mobile operators — Jazz, Zong and Ufone — obtained frequencies for next-generation mobile services. PTA data showed Jazz was the biggest buyer, securing 190 MHz of spectrum, including 50 MHz in the 3,500 MHz band, 70 MHz in the 2,600 MHz band, 50 MHz in the 2,300 MHz band and 20 MHz in the 700 MHz band.

Operators begin phased deployment

Some telecom companies have already introduced 5G internet at selected locations where equipment has been installed for testing. Industry officials said all operators have placed orders for equipment needed to start 5G operations in Pakistan.

A senior Jazz official said the company had launched 5G services at 150 sites and planned to install equipment at 1,000 sites in the initial phase, with expansion to 2,500 sites by December this year.

"Let's be clear; 5G is not about switching on sites for headlines. We're deliberately piloting with around 180 sites today, and scaling from July as the ecosystem matures. We will expand in a phased, disciplined manner, targeting 1,000 sites by mid-August and 2,500 by year-end, but only where it delivers real value. Anything else is noise," Kazim Mujtaba, President Jazz GSM, said.

iPhone users to wait longer

Ministry officials said 5G services will not initially be available to iPhone users in Pakistan. According to the officials, Apple has informed the government that it expects to enable the 5G option for Pakistani users in 2027 after assessing the size of the market.

Officials said Apple is not prepared to activate 5G for Pakistani users immediately. They also said high taxes on imported mobile phones, particularly iPhones, have reduced Apple’s market size in the country. By contrast, 5G services are available on Samsung devices.

Handset shortage and installment proposal

Industry officials said only 5% 5G handsets are currently available in Pakistan, describing this as a major challenge for operators preparing to launch the service. They added that local manufacturers have started producing 5G mobile phones.

Telecom companies have also proposed a mobile phone installment scheme to improve access to 5G devices. Industry officials said they had suggested that the government introduce such a programme with a condition that defaulters would be barred from obtaining a mobile connection from any telecom company.

"We have proposed that the government could launch the provision of mobile phones on installments with the condition that defaulters will be prevented from getting connection from any telecom company," industry officials said.

They said an earlier effort by the telecom industry to offer handsets on installments ran into difficulties because the default ratio was 30-40%, amounting to millions. Officials added that the proposal also faced resistance from Zong, which argued that operators such as Jazz and Ufone have their own banks and would therefore enjoy an additional financing advantage.

Tax concerns and internet usage

Industry officials said internet usage in Pakistan remains low compared with users in other countries in the region. They said they expect internet consumption to rise over the next three to four years because of content on YouTube and TikTok.

They also said the telecom sector ranks third in terms of taxes, particularly on recharge, and argued that lower taxation would help advance the Digital Pakistan vision.

"At nearly 45%, telecom is among the most heavily taxed sectors; yet it underpins the entire digital economy. You can't build a future-ready Pakistan on yesterday's tax model. Telecom is being taxed like a cash cow, when it should be treated as critical infrastructure," Kazim Mujtaba said.