High spectrum costs hamper digital access

Telecom industry urges reforms to bridge digital divide at DFDI forum

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ISLAMABAD:

The telecom industry has urged the government to address challenges of high spectrum prices, scarce availability, digital literacy gaps, and limited broadband access to help move the country toward a Digital Pakistan.

"Structural challenges—such as overpriced and scarce spectrum, digital literacy gaps, and limited broadband access—must be urgently addressed," said Jazz CEO Aamir Ibrahim at the Pakistan Digital Foreign Direct Investment (DFDI) Forum 2025.

While speaking during a panel discussion titled "DFDI Landscape: Insights and Actions," he emphasised that challenges such as broadband expansion, digital banking, and digital education cannot be addressed by the private sector or NGOs alone. "The government must play an enabling role—sometimes by intervening, and at other times by stepping back," he said.

On spectrum pricing, he was unequivocal, "Spectrum is the foundation of broadband connectivity, yet it has historically been mispriced. The upcoming auction offers an opportunity to fix this and enable digital growth," he remarked.

If Pakistan is to lead in the digital era, it must shift from a whole-of-government to a whole-of-country approach—mobilising every sector, stakeholder, and citizen around a shared digital vision," he said and stressed that digital investment is not merely about capital, it is also about building confidence in Pakistan's talent and potential. "We're already a generation behind in tech. Without embracing Artificial Intelligence (AI), local large language models, data centres, and fast internet, we risk falling two generations behind," he cautioned.

The panel featured key voices from across sectors, including United Nations Development Programme's (UNDP) Samuel Rizk, Contour Software's Bilal Mahmood, Milliman's Dermot Corry, AI Doctrine Inc's Naeem Mirza, and the Digital Cooperation Organisation's Rao Mehroz Khan. In a separate session titled "Opportunities for the Telecom Sector in the Digital Era," Asif Aziz, President Enterprise Solutions at Jazz, called for a strategic shift in the telecom sector—from providing basic connectivity to enabling full-scale digital ecosystems for enterprises.

"Pakistan has 197 million mobile connections, but now it's about enabling digital transformation across healthcare, logistics, manufacturing, and agriculture," he said. He also flagged the risks of prohibitive spectrum pricing: "If it discourages investment in infrastructure, 5G will remain a theoretical promise."

On affordability, Asif highlighted a critical gap, stating, "While 40% of the population lives within mobile broadband coverage, many still don't use it. A basic smartphone costs 37–40% of a low-income household's monthly income, and import duties exacerbate this issue. Connectivity without affordability is connectivity in name only."

Across the forum, panellists emphasised that bold public-private collaboration, regulatory reforms, and alignment with global best practices are essential. With a young population and rising demand for innovation, Pakistan is well-positioned to unlock inclusive digital growth—if the right actions are taken now.