Structural and Financial Challenges Undermine Pakistan's 5G Aspirations
Synopsis
Key Takeaways
Colombo, April 11 (NationPress) The ongoing 5G spectrum auction in Pakistan is proving insufficient due to a variety of structural challenges, including fibre-optic limitations, accessibility issues with devices, financial investment hurdles, and execution-related infrastructure problems, according to a recent report.
The prominent Sri Lankan publication, Daily Mirror, highlights that these constraints suggest that 5G technology, at this time, is more of a marketing concept than a practical solution for the majority of Pakistanis.
Additionally, it mentions that the significant funds spent by operators on acquiring licenses must be recuperated, and in a fragile economic landscape, it is likely that consumers will shoulder this burden.
Without necessary reforms in policy, incentives for investment, and affordable devices, the report indicates that the promise of 5G in Pakistan will remain unfulfilled.
“Although the auction was hailed as a significant milestone, the reality is far more intricate. The sale of spectrum marks just the initial step in a lengthy and challenging process. The structural, device, financial, and infrastructural issues confronting Pakistan imply that 5G, for the time being, resembles a marketing narrative rather than a functional service for most citizens,” the report elaborated.
“One of the most urgent challenges is the physical infrastructure required to transmit 5G signals. Merely having towers isn't sufficient; the real obstacle lies in the backhaul, which connects cell sites to the core network. Globally, fibre-optic technology is considered the gold standard, capable of handling terabits per second with latency measured in mere milliseconds. For 5G standalone networks, backhaul bandwidth exceeding 10 Gbps per site and round-trip times below 5 milliseconds are critical,” it explained further.
The report emphasized that Pakistan is far from achieving these standards, with only around 15% of cell sites linked through fibre, while the other 85% rely on microwave radio connections.
“These microwave links have fixed capacity limits, deteriorate in adverse weather, and cannot manage the traffic volumes that 5G will generate. The cost of fibre-connecting a single site ranges from $10,000 to $20,000, and given that tens of thousands of sites require upgrades, the capital investment far exceeds the half-billion dollars raised from the auction,” it pointed out.
“The situation is further aggravated by Pakistan's right-of-way fee structure. Unlike India, which imposes a one-time fee of approximately ₹1 per meter, Pakistan charges between PKR 35 and PKR 60 per meter annually. This converts what should be a one-time capital expenditure into a continuous operational burden, deterring potential investments,” it stated.
As Pakistan sits at 76th position out of 93 economies in the Fibre Development Index, the report warns that without significant reforms, fibre-optic expansion will continue to be the “Achilles heel” of the nation's 5G deployment.