PTCL’s Hatem Bamatraf Highlights Key Conditions for a Successful 5G Auction in Pakistan
As Pakistan gears up for the transformative potential of 5G technology, the path to its successful deployment hinges on strategic planning and favorable conditions. PTCL Group, a prominent name in Pakistan’s telecommunications sector, including its subsidiary Ufone, recognizes the profound impact 5G can have on the country’s digital landscape. In this context, Hatem Bamatraf, the President and Group CEO of PTCL Group, has outlined critical factors for the success of the upcoming 5G spectrum auction, slated for May 2025.
PTCL’s Commitment to Innovation
Addressing the company’s stance on the upcoming auction, Bamatraf stated:
“We will participate in the 5G spectrum auction. It all depends on the conditions of the auction. If the terms or conditions of the auction make sense for us from a business point of view, then definitely, we would like to be the most innovative company in this market and jump into new technologies as long as it makes a business case.”
This perspective underscores the importance of creating a business-friendly environment to drive innovation and enable telecom operators like Ufone to fully embrace 5G technology.
Essential Factors for 5G Auction Success
For the 5G spectrum auction to be truly impactful, Ufone emphasizes the need for certain key conditions to be met:
- Flexible Payment Terms
Introducing extended payment schedules will alleviate financial pressure on telecom operators, allowing them to focus on infrastructure development and technology rollout. - Realistic Reserve Prices
Spectrum prices should be aligned with Pakistan’s economic conditions to encourage broader participation. Unreasonably high reserve prices could deter potential bidders and limit competition. - Rupee-Based Pricing
Moving away from dollar-linked spectrum pricing is essential to shield the telecom sector from the adverse effects of currency depreciation, ensuring long-term financial sustainability.
These recommendations have been shared with the Ministry of Information Technology and NERA (National Economic Research Associates Inc.), the consultancy firm advising on the auction. NERA has endorsed these concerns, emphasizing that high spectrum costs and dollar-based pricing could stifle the growth of 5G in Pakistan.
The Challenge of Currency Depreciation
One of the most pressing challenges for Pakistan’s telecom industry is currency depreciation. Since the last spectrum auction in 2021, the rupee has weakened significantly, with the dollar-to-rupee exchange rate soaring from Rs163 to Rs278—a staggering 70% increase. This sharp devaluation has dramatically inflated the cost of spectrum, making it harder for operators to sustain their investments while maintaining affordable services for consumers.
For Ufone, this economic reality translates into higher operational costs, squeezed profit margins, and reduced capacity for innovation. Transitioning to rupee-based spectrum pricing is, therefore, a vital step to mitigate these challenges and foster sustainable growth in the telecom sector.
5G: Unlocking New Opportunities
Despite these challenges, Ufone remains optimistic about the transformative potential of 5G. As Hatem Bamatraf highlighted, 5G is more than just faster internet—it’s a gateway to innovation across multiple industries, including healthcare, education, agriculture, and e-commerce. By leveraging the capabilities of 5G, Pakistan can accelerate its journey toward digital transformation, fostering economic growth and enhancing societal well-being.
Collaboration: The Key to Success
The success of Pakistan’s 5G journey will rely heavily on collaboration between the government, regulatory authorities, and telecom operators. Addressing concerns related to pricing, payment terms, and economic realities will not only encourage telecom companies to invest in 5G but also ensure that consumers benefit from affordable and accessible services.
As a company deeply committed to Pakistan’s digital evolution, Ufone is prepared to embrace 5G and introduce cutting-edge technologies. However, achieving this vision requires an environment that supports sustainable business practices. By addressing the issues of currency depreciation and high spectrum costs, the government can unlock 5G’s full potential, positioning Pakistan as a frontrunner in the digital age.
