Amir Saeed

The congested and scarce spectrum in Pakistan is a significant barrier to the growth of the technology sector, which is crucial for enhancing internet connectivity and attracting foreign direct investm

ent.

Talking to WealthPK, Ahad Nazir, an associate research fellow at Sustainable Development Policy Institute (SDPI), highlighted that the scarcity of available spectrum represented a fundamental challenge to telecom companies in the country. “Historically, the government has been hesitant to provide telecom companies with access to enough spectrum, hampering their ability to grow and enhance services.” He further highlighted that the starting rates for spectrum auctions were often unaffordable, which presented another challenge for telecom operators. “The fact that the spectrum pricing is set in US dollar makes them more expensive when converted into the local currency, exacerbating the situation. As a result, many potential investors are deterred from entering the market, and existing players struggle to compete effectively.” “Furthermore, spectrum congestion hinders innovation in the IT industry in addition to adversely affecting service quality.

With the increasing demand for data-intensive applications, such as video streaming, online gaming, and cloud services, service providers need sufficient bandwidth to meet consumer expectations,” Nazir suggested. He also advocated for a more open and competitive spectrum allocation to convey to potential investors that the country was dedicated to its technological ambitions. “By formulating more strategic and flexible spectrum allocation policies, the government could foster competition and encourage new entrants into the market.” Talking to WealthPK, Tariq Baig, corporate sales manager at Ufone 4G, said that telecom companies were unable to make investments in new technology or increase the range of services they offered when spectrum was expensive and scarce. “This stagnation hinders the innovation that could propel the sector forward and attract much-needed foreign investment.” He said that telecom companies should be encouraged to invest in infrastructure improvements by lowering the starting pricing for spectrum and implementing a more transparent auction process.

“A well-regulated spectrum market could help enhance connectivity and improve services, making the country a desirable location for tech companies and investors.” Baig said, “Pakistan could fall behind if it cannot secure adequate spectrum resources. Foreign investors are often looking for stable environments with well-defined legal frameworks and easily accessible resources.” “In addressing these challenges, collaboration between the government and private sector is important. A plan for more efficient spectrum management can be developed with the participation of all stakeholders,” he suggested. “The government and telecom operators should develop policies to stimulate growth, attract foreign investment, and ultimately benefit consumers. By collaborating with the telecom sector, the government could find innovative methods to increase the spectrum that is available while maintaining fair competition,” he emphasised.

Credit: INP-WealthPk