In the recent broadband spectrum auction, only one in four companies bid less than one-third of the spectrum offered for sale, while those in the telecom sector did not expect it.
The need for spectrum connectivity is the first pillar of digital Pakistan but the telecom sector in the country lags behind all the neighboring countries (except Afghanistan). The quality and speed of broadband internet is pitiable across the country except in some affluent areas of big cities.
The dream of Digital Pakistan depends on mobile broadband as according to PTA, out of 104 million broadband subscriptions, 102 million are mobile. Spectrum plays an important role in this regard but the release of spectrum is the lowest in Pakistan.
Despite this, the entire spectrum offered in the recent auction has not been sold. The most important of these was the high price set by the government. Failure to sell spectrum has a negative impact on foreign investors.
On the other hand, government officials claim that the reason for the failure to sell spectrum is not the high price but the fact that there is no demand for spectrum in Pakistan. He cites examples of auctions held in 2014, 2016 and 2017.
If this is true then the government should identify and address the reasons for low demand for spectrum as demand for spectrum among mobile network operators around the world is always on the rise.
