Jazz CEO Urges Reforms for Seamless 5G Rollout in Pakistan
Introduction to Pakistan’s 5G Future
Pakistan’s telecom sector is on the brink of a major transformation with the upcoming rollout of 5G technology, scheduled for April 2025. However, this transition is not without its challenges. Aamir Ibrahim, the CEO of Jazz and Chairman of the Telecom Operators Association of Pakistan (TOA), has been vocal about the urgent reforms needed to ensure the smooth implementation of 5G. In his recent address at the National Broadband Network Forum in Islamabad, Aamir Ibrahim outlined the key reforms that will pave the way for a successful 5G rollout, enabling Pakistan to take full advantage of next-generation connectivity.
The Role of 5G in Pakistan’s Digital Transformation
5G: A Catalyst for Digital Growth
Aamir Ibrahim firmly believes that 5G has the potential to revolutionize a variety of sectors in Pakistan, including e-commerce, healthtech, and agritech. He pointed out that while 4G technology has been instrumental in enabling services like streaming and e-commerce, it is not enough to meet the needs of emerging technologies. For applications like immersive gaming, health wearables, and the Internet of Things (IoT), the speed and low latency of 5G are essential to reach their full potential.
Unlocking the Potential of Emerging Technologies
One of the primary benefits of 5G lies in its ability to support advanced applications such as augmented and virtual reality (AR/VR), real-time remote surgery, and automated farming solutions. These technologies can transform Pakistan’s healthcare, agriculture, and retail sectors, driving significant economic growth. However, for this vision to become a reality, Pakistan must address several challenges facing the telecom sector.
Challenges Hindering 5G Rollout in Pakistan
Limited Availability of 5G-Enabled Devices
A major hurdle in the transition to 5G is the affordability and availability of 5G-enabled smartphones. Aamir Ibrahim highlighted that while more than 50% of Pakistanis own smartphones, only 1% of them have access to 5G-compatible devices. With prices for 5G-enabled smartphones starting at approximately PKR 60,000, these devices are out of reach for a large portion of the population, particularly in a country where many still rely on 2G technology.
Economic Challenges and the Telecom Sector
Aamir Ibrahim also discussed the economic challenges plaguing Pakistan’s telecom industry, particularly the severe devaluation of the Pakistani Rupee (PKR) against the US Dollar. Since 2021, the PKR has depreciated by over 110%, significantly increasing operational costs for telecom operators. Telecom fees, which are paid in USD, are now a major financial burden on operators, complicating efforts to implement 5G infrastructure.
Spectrum Shortage in Pakistan
Another critical challenge that Pakistan faces is a severe shortage of spectrum. The country is one of the most spectrum-starved nations globally, with only 1.1 MHz of spectrum available per million people. This shortage makes it difficult to allocate enough spectrum for 5G services, hindering the rollout and development of next-generation telecom infrastructure.
Key Reforms for a Successful 5G Transition
Aligning Spectrum Pricing with Local Market Realities
Aamir Ibrahim proposed several key reforms to ensure the successful rollout of 5G. One of the most pressing issues is the high cost of spectrum. Pakistan’s telecom operators are burdened by spectrum prices that are pegged to the US Dollar, making them unaffordable given the country’s economic situation. Ibrahim recommends aligning spectrum prices with local market realities, by indexing them to the PKR rather than the USD, to reduce financial pressures on telecom operators.
Revamping Licensing and Data Pricing
To support the telecom industry and ensure the sustainable growth of 5G, Aamir Ibrahim called for the introduction of a 20-year licensing policy with a five-year moratorium on license renewals. This policy would help provide long-term certainty for operators and encourage investment in 5G infrastructure. Additionally, he stressed the need to rationalize data pricing to help raise the Average Revenue Per User (ARPU), which could boost revenues for telecom companies while making data services more affordable for consumers.
Tax Incentives for 5G Equipment and Device Financing
To stimulate the adoption of 5G, Aamir Ibrahim emphasized the need for tax incentives on the importation of 5G equipment and devices. Such incentives would make it easier for telecom operators to deploy 5G infrastructure and for consumers to purchase 5G-enabled smartphones. He also suggested that financing options for smartphones be improved to make them more affordable for the average consumer.
Telecom as Critical Infrastructure
Aamir Ibrahim proposed classifying telecom as critical infrastructure, which would allow telecom companies to access industrial power tariffs. This would significantly reduce the operational costs of telecom operators, particularly in a country like Pakistan, where energy costs are a significant financial burden.
Reforming the Spectrum Auction Process
Aamir Ibrahim also called for improvements in Pakistan’s spectrum auction process. He noted that previous auctions had been hindered by limited competition, resulting in suboptimal outcomes. By creating a more competitive auction process, Pakistan could attract higher bids, ensuring the availability of adequate spectrum for the 5G rollout.
The Economic Impact of 5G on Pakistan’s GDP
Boosting Pakistan’s GDP Through Broadband Penetration
The potential economic benefits of 5G are substantial. Aamir Ibrahim pointed out that increasing broadband penetration could boost Pakistan’s GDP by 1.4%. This would come from the positive impact of 5G on various industries, including e-commerce, education, and healthcare. As more people gain access to faster and more reliable internet, the digital economy will thrive, leading to greater economic growth.
Conclusion: Acting Swiftly for a Digital Future
In conclusion, Aamir Ibrahim’s call for critical reforms is a timely reminder of the challenges that Pakistan’s telecom sector must overcome to make the 5G transition a success. By addressing issues such as spectrum pricing, the affordability of 5G devices, and the overall economic challenges facing telecom operators, Pakistan can unlock the full potential of 5G and drive its digital transformation.
FAQs about 5G Rollout in Pakistan
1. When is 5G expected to roll out in Pakistan?
5G is scheduled to roll out in Pakistan by April 2025.
2. What are the main challenges in Pakistan’s telecom sector?
The key challenges include the affordability of 5G devices, spectrum shortages, rising operational costs, and the devaluation of the Pakistani Rupee.
3. How will 5G impact Pakistan’s economy?
5G is expected to boost Pakistan’s GDP by 1.4%, largely due to its impact on industries like e-commerce, healthcare, and agriculture.
4. What reforms does Aamir Ibrahim recommend for a successful 5G rollout?
Key reforms include aligning spectrum pricing with local market realities, offering tax incentives for 5G equipment, and improving device financing options.
5. How will the telecom industry benefit from 5G?
The telecom industry will benefit from increased Average Revenue Per User (ARPU), greater broadband penetration, and the development of new digital services powered by 5G.
