EDITORIAL: Finally, the government is closing in on a much-needed spectrum auction, which is of utmost importance for improving internet speed and reliability in the country. It is a welcome move. Pakistan is a spectrum-starved country, while data usage is rampant. It is like running a six-lane traffic load on a two-lane road. The result is obvious congestion, which is adversely impacting everyone. The question is why Pakistan is spectrum starved. One of the prime reasons is that the government has historically viewed spectrum sales as a one-time source of fiscal revenue, while considerations around network improvement and technological advancement remained secondary. This is why there has been no successful auction over the last five years, and with every passing day, service delivery continues to worsen. It appears that the realization is finally gaining ground that the broader economic benefits of spectrum allocation are greater than immediate fiscal gains. However, much will depend on pricing and payment conditions. The government is considering auctioning 600 MHz of spectrum, which is more than double the existing capacity. According to industry experts, the government will be fortunate if even half of the spectrum on offer is successfully auctioned. The key questions are the price set by the government, the currency of payment, and the payment schedule. The spectrum on offer spans different frequencies, ranging from 700 MHz to 3,500 MHz. While spectrum bands are technology-neutral, existing literature suggests that bands below 2,000 MHz are better suited for 3G/4G, while higher bands are more conducive for 5G. Ultimately, it will be the buyers’ discretion to decide how they deploy the spectrum. The priority should be to improve speed for a large segment of the population and, for that, strengthening existing 3G/4G networks is critical. The focus must be on immediate improvements. According to the CEO of a leading Telco, better spectrum availability can increase speeds by 10–20 times, which is reassuring. At the same time, the government appears keen on headlines around rolling out 5G, even though its usage is currently limited and only a small number of expensive handsets are 5G-enabled. That said, 5G is the network of the future, and Pakistan should build the infrastructure needed to move up the value chain in areas such as artificial intelligence and quantum computing. It is good to dream in view of the fact that dreams can sometime offer unique perspectives or solutions to future problems in a self-reflective way, but securing today’s potential is more important. The government has been mulling over these auctions for the past eighteen months. One major hurdle was the pending approval of Ufone’s acquisition of Telenor, which has now been resolved. There are three players in the market, the structure is in place, and the time to move forward has arrived. The government must design the auction in a way that maximizes proceeds without imposing excessive upfront costs on operators. It must also ensure that operators invest in technology upgrades and deliver better speeds and network quality for everyone. The mistakes of the last auction when no spectrum could be sold should not be repeated. At the same time, the deal must be structured in a way so that consumers can benefit from it. Operators should be required to invest in technology, as seen in India, while the government can recover value through higher tax revenues and exports resulting from increased economic activity. Copyright Business Recorder, 2025