Industry proposes spectrum sharing

Cites examples of Saudi Arabia, Indonesia which allocated spectrum at 10% of last price

ISLAMABAD:

The telecom industry, which has been grappling with unresolved issues for years, has asked the government to follow a spectrum-sharing model instead of auctioning the spectrum.

The industry and the government have to resolve the issue of collecting spectrum fee in dollars. Another challenge is the legal dispute that is delaying the upcoming auction.

In the backdrop of such pressing challenges, the industry has come up with three proposals. Besides the spectrum-sharing model, the telecom companies suggest that the spectrum fee should be in Pakistani rupees instead of US dollars. The third proposal is to follow the Saudi Arabian model of auctioning the spectrum without any cost.

Jazz officials told media on Monday that they were asking the government to follow the models of Saudi Arabia, Vietnam and Indonesia, where spectrum was allocated at around 10% of the value of last spectrum price. It was highlighted that government interventions resolved litigation matters in India and Pakistan ought to follow that example.

Meanwhile, a GSMA report titled "Building Digital Pakistan through Effective Spectrum Policy" cautioned that Pakistan risked losing $4.3 billion in potential economic benefits over the next five years if spectrum allocation was delayed further.

"Not enough spectrum means mobile is less productive and less affordable," the report mentioned, adding that spectrum costs in Pakistan already accounted for 20% of operators' revenues - among the highest globally.

Jazz CEO Aamir Ibrahim, during a meeting, said that when spectrum is priced beyond the reach of operators and compounded by one of the heaviest tax regimes in the world, the entire digital ecosystem suffers.

He added that telecom operators are forced to limit investment, customers face poor service quality and the government itself loses long-term dividends of a robust digital economy. "The real solution lies in rational, investment-friendly policies that prioritise affordability and long-term growth over short-term revenue maximisation," Ibrahim said.