PTCL’s Hatem Bamatraf Outlines Key Conditions for 5G Auction Success

Ufone, as a key player in Pakistan’s telecommunications landscape, recognizes the immense potential of 5G technology in transforming the country’s digital infrastructure. However, the road to successful 5G deployment requires careful planning and favourable conditions for all stakeholders involved. Hatem Bamatraf, the President and Group CEO of PTCL Group, which includes Ufone, has highlighted key conditions for the successful upcoming 5G spectrum auction, planned by the government for May 2025.

This is what Bamatraf said about the participation in the 5G Auction,

Key Prerequisites for 5G Success

Ufone firmly believes that meeting certain conditions is essential for the 5G spectrum auction to succeed and ensure a sustainable business case. These include:

Extended Payment Terms: Flexible payment terms will ease telecom operators’ financial burden, enabling them to invest more effectively in infrastructure and rollout plans.

Reasonable Reserve Prices: Spectrum prices must be realistic and aligned with the current economic conditions to attract participation from multiple players.

Rupee-Based Pricing: It is also crucial to move away from dollar-pegged spectrum prices to mitigate the impact of currency depreciation on the telecom sector.

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These concerns have been communicated to relevant stakeholders, including the Ministry of Information Technology and the National Economic Research Associates Inc. (NERA), a consultancy firm advising on the auction process. NERA has also supported these demands, emphasizing that high spectrum prices and dollar-based pricing can hinder the growth of 5G in Pakistan.

The Impact of Currency Depreciation

Currency depreciation has been one of the most significant challenges for Pakistan’s telecom sector. Since the last spectrum auction in 2021, where the dollar-to-rupee exchange rate stood at Rs163, the rate has surged to Rs278, reflecting a staggering 70% increase. This steep devaluation has drastically inflated the cost of spectrum for operators, making it challenging to sustain investments and maintain affordability for consumers.

For Ufone, these economic hurdles translate into increased operational costs, reduced profit margins, and a limited ability to invest in innovation and expansion. Moving to a rupee-based pricing model is, therefore, a critical step in ensuring that telecom operators can continue to drive technological advancements without being disproportionately burdened by currency fluctuations.

5G: A Catalyst for Digital Transformation

Despite these challenges, Ufone is optimistic about embracing 5G as a catalyst for Pakistan’s digital transformation. As highlighted by Hatem Bamatraf, 5G has the potential to revolutionize industries, empower individuals, and accelerate the country’s journey toward a more connected future. Robust and purpose-built 5G technology will open new opportunities in areas like healthcare, education, agriculture, and e-commerce, significantly boosting economic growth and societal development.

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A Collaborative Approach for Success

Ufone emphasizes the importance of collaboration between the government, regulatory bodies, and telecom operators to ensure the success of the 5G spectrum auction. Addressing concerns related to pricing, payment terms, and economic realities will benefit telecom companies and pave the way for affordable and accessible 5G services for consumers.

As a company deeply rooted in Pakistan’s telecommunications sector, Ufone is ready to play its part in introducing innovative technologies and services, also provided the auction terms support a viable business case. By addressing the challenges of currency depreciation and high spectrum costs, the government can unlock the true potential of 5G, enabling Pakistan to thrive in the digital age.