Pakistan’s ambitious plans to introduce 5G services within the next 10 months are met with skepticism from the telecom industry. Industry insiders argue that foreign exchange restrictions and economic challenges pose significant obstacles to such a rapid rollout.
These constraints have already led to the closure of numerous factories, including smartphone assembly plants. In this economic climate, allocating billions of dollars for 5G equipment and expensive handsets, which are out of reach for the majority of Pakistanis, presents a substantial challenge.
One major concern is the requirement to pay spectrum fees in dollars rather than Pakistani rupees, adding further hurdles to the introduction of 5G in Pakistan. Operators struggle to build a compelling business case for 5G, even if spectrum allocation were provided without cost.
Aamir Ibrahim, CEO of Jazz, acknowledges the potential of 5G technology for advanced enterprise use cases but emphasizes that the priority should be expanding robust 4G internet access across the country, particularly in remote areas.
Jazz has been investing in extending mobile broadband connectivity, aiming to provide accessible and affordable internet to all citizens, as the majority of the population cannot afford the luxury of 5G-enabled handsets.
Participating in a spectrum auction and facing challenges due to foreign exchange constraints in procuring necessary devices can be counterproductive. The industry believes that addressing pressing concerns in the telecom sector, such as high business costs linked to spectrum prices pegged to the US dollar, should take precedence. Once these issues are resolved, Pakistan can explore next-generation technologies like 5G.
Industry leaders like Hatem Bamatraf, PTCL Group President and CEO, and Irfan Wahab Khan, outgoing CEO of Telenor Pakistan, suggest that Pakistan should focus on enhancing 4G services nationwide before delving into 5G.
The consensus is that addressing telecom sector challenges and the prevailing “digital emergency” should be the top priority, paving the way for future technological advancements.