Pakistan’s eagerly awaited 5G spectrum auction is set to be delayed by at least four months, as regulatory indecision over the proposed merger between Telenor Pakistan and PTCL-owned Ufone continues to cast a shadow over the process.

The Competition Commission of Pakistan (CCP) has yet to reach a decision on the merger, creating uncertainty about how many telecom operators will be eligible to participate in the next-generation spectrum auction.

The Ministry of Information Technology revealed that even after the government finalizes and issues policy directives for the auction, the launch of 5G services would require a minimum of three additional months. However, the advisory committee responsible for steering the auction process has not yet convened, with regional geopolitical tensions and rising hostilities between Pakistan and India further complicating matters.

The Pakistan Telecommunication Authority (PTA) confirmed that the international consultant hired to advise on 5G has completed its work, submitting a comprehensive report that considers scenarios involving either three or four operators, depending on the outcome of the Telenor-PTCL merger. While the technical groundwork for the auction is in place, the lack of policy direction is stalling progress.

The federal government had previously outlined an ambitious roadmap to launch 5G services by June 2025, with policy reforms to be finalized in March, a policy directive issued in April, the auction held in May, and commercial 5G services rolling out by June. With mid-May already passed and no movement from the advisory committee, this timeline now appears unattainable.

Both Telenor and PTCL have criticized the CCP for what they describe as unnecessary delays, noting that the merger application submitted on February 29, 2024, remains under Phase II scrutiny. PTCL has proposed a $1 billion investment and has sought intervention from the Special Investment Facilitation Council (SIFC) to expedite the process.