5G rollout in Aug, devices scarce
Amid low availability of 5G handsets in Pakistan, telecom companies are set to commercially roll out 5G services across the country by mid-August this year, allowing people to enjoy high-speed internet.
Mobile phone operators have proposed that the government could launch an installment scheme for mobile phones with a condition that a defaulter will be banned from getting mobile SIM from any telecom company.
Meanwhile, 5G services will not be available to iPhone users as Apple is expected to allow 5G on iPhones in Pakistan in 2027.
At present, Apple is not ready to allow 5G services immediately for Pakistani users. IT and telecom ministry officials say that Apple has conveyed it will open a 5G option on iPhones for Pakistani users after evaluating the market size in 2027.
For now, the government has imposed massive taxes on imported mobiles, especially iPhones, that have shrunk the market size for Apple. However, 5G services are available on Samsung handsets.
Earlier, the government sold 5G spectrum worth $507 million in an auction in March this year aimed at boosting internet speed and quality. Some telecom companies have launched 5G internet at some selected places where they have installed equipment for service tests.
In total, the government sold 480 MHz of spectrum, although it had originally targeted 597 MHz. Three telecom operators - Jazz, Zong and Ufone - secured frequencies to roll out next-generation mobile services.
According to the Pakistan Telecommunication Authority (PTA), the auction resulted in 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, bringing the total spectrum sold to 480 MHz.
In terms of allocation, Jazz emerged as the largest 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.
Telecom industry officials said that all telecom operators had placed orders for equipment to launch 5G operations in Pakistan.
"Jazz has launched 5G services at 150 sites and will be able to install equipment at 1,000 sites in the initial phase that will be extended to 2,500 sites by December this year," a senior Jazz official said.
"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.
Telecom industry officials say that Pakistan has low internet use compared to users in the region. "We have estimated that the use of the internet will get a boost in the next three to four years due to the content on Youtube and TikTok," officials said.
Industry officials point out that the telecom sector stands at number three in terms of taxes, especially on recharge. They were of the view that the government should reduce taxes to achieve 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.
5G handsets on installments
At present, only 5% 5G handsets are available in Pakistan. However, local manufacturers have started manufacturing 5G mobiles.
"This is a big challenge for telecom companies to launch 5G services in Pakistan," industry officials said. They added that the provision of mobile handsets on installments by telecom companies faced a setback due to opposition from Zong.
Zong cites that other telecom operators, like Jazz and Ufone, have their own banks; therefore, they would have extra advantage in financing.
The telecom industry had earlier launched the provision of mobile handsets on installments but it noted that there was a default ratio of 30-40% that amounted to millions. "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.