Three out of four Mobile Network Operators (MNOs) in Pakistan have annual spectrum expenditures that exceed 10% of their earnings, posing a danger to the country’s 5G growth.
This was discovered in official Ministry of Information Technology and Telecommunication documents. Coleago Consulting, an international consultant, conducted research on the Pakistan spectrum, which is now being reviewed by the ministry.
The high cost of the spectrum may compromise operators’ capacity to invest in and sustain affordable services, resulting in delayed MBB network development and more expensive, lower-quality MBB services. It will stifle long-term social and economic digital progress.
The papers urged that the government take steps to make spectrum more affordable to operators. Many governments throughout the world adopt mechanisms such as yearly payment and delayed payment, among other things, to ease the financial burden of operators, particularly in the early years of network roll-out.
Countries with cheap spectrum auction costs and extended-spectrum license terms typically have greater network coverage, a broader range of services, more take-up, and more competitive markets. According to a GSMA econometric analysis, high spectrum charges have a detrimental impact on customer outcomes by limiting financial capabilities for network expansion.
The papers also said that high spectrum costs hindered the implementation of 3G and 4G networks in underdeveloped nations, resulting in...
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