Pakistan 5G pilot projects start next week following $507M spectrum auction. How 5G will change internet speeds Pakistan from 4 Mbps to 20 Mbps—analysis of rollout challenges.

Standfirst: After years of regulatory delays and industry scepticism, Pakistan has concluded its most lucrative spectrum auction to date, netting $510 million and paving the way for pilot 5G launches from next week. IT Minister Shaza Fatima Khawaja tells operators the transition must balance technological leap with the reality of the world’s lowest ARPU—while a new smartphone leasing policy aims to bridge the device gap.

The announcement came not with the usual fanfare of a gleaming telecom expo, but in a packed Islamabad news conference where the mood was one of guarded optimism. Flanked by PTA Chairman Hafeez Ur Rehman and representatives from Jazz, Ufone, and Zong, Minister for Information Technology and Telecommunication Shaza Fatima Khawaja delivered the news that an industry—and a nation of 240 million—had been awaiting for half a decade.

“I was very happy to hear the day before yesterday that some of our operators are ready for 5G services,” she told reporters on March 12, 2026. “So, its pilot will start in some cities next week. And in the next six to eight months, in five of our capitals of all provinces and in the federal capital, 5G services will be available to all of you people.” 

Behind that understated delivery lies a telecom auction that defied expectations. When the Pakistan Telecommunication Authority (PTA) opened bidding on March 10, few anticipated the ferocity of competition that would follow. Across three rounds of electronic bidding, conducted via a secure Electronic Auction System with live results broadcast on Pakistan Television, three operators—Jazz, Ufone, and Zong—contested 480 MHz of spectrum across six bands.  The result: $510 million in government revenue, with Jazz emerging as the dominant bidder, securing 190 MHz including the prized 700 MHz band. Ufone claimed 180 MHz, while Zong took 110 MHz. 

For context, this surpasses every previous Pakistani spectrum auction. It signals something deeper: after years of circling each other warily, the government and mobile operators have finally found common ground.

The Auction That Nearly Wasn’t: Inside the $510 Million Spectrum Sale

To understand why this auction represents more than a revenue line, one must revisit the landscape of just eight months ago. At the GSMA’s Digital Nation Summit in Islamabad in August 2025, the industry’s frustrations were laid bare. Julian Gorman, the GSMA’s Head of Asia Pacific, warned that Pakistan risked missing the digital transformation wave entirely, citing “high spectrum prices, heavy sector-specific taxes and regulatory uncertainty” as barriers limiting investment. 

The operators had been blunter still. In a report released by the Asian Development Bank in mid-2025, they argued that 5G rollout was “almost impossible” under prevailing conditions. “With the lowest-in-the-world average revenue per user (ARPU), exorbitantly high taxes, low adoption of 4G/smartphones, and multiple other outstanding sector issues, it will be extremely challenging to convince our parent companies to invest in 5G roll out in Pakistan,” the submission read. 

What changed? The answer lies in the auction design itself. Speaking at the launch ceremony, Minister Khawaja emphasized that the government had deliberately avoided the temptation to maximise upfront revenues. “The aim is not to maximise upfront auction revenues,” she stated, “but to provide operators with the opportunity to invest in network expansion and infrastructure so that improved and high-quality digital services can be delivered to consumers across Pakistan.” 

PTA Chairman Hafeez Ur Rehman reinforced this message, noting that the Authority had taken “consumer-centric regulatory measures, including bringing Right of Way (RoW) charges to zero, in order to facilitate faster network rollout and reduce barriers for telecom operators.” 

The result was a delicate compromise: operators secured spectrum at sustainable prices, while the government achieved both revenue targets and a credible path to 5G.

Auction Breakdown: Who Won What

Operator	Spectrum Acquired	Key Band Secured	Strategic Position
Jazz	190 MHz	700 MHz	Dominant low-band coverage
Ufone	180 MHz	Mid-band	Aggressive challenger
Zong	110 MHz	2600/3500 MHz	Capacity-focused

The assignment stage, scheduled for March 12, will determine specific frequency positions within each band, with an additional $3 million expected from position assignment fees. 

From 4 Mbps to 20 Mbps: What 5G Actually Means for Pakistani Users

Beyond the boardroom negotiations and spectrum lots, a more fundamental question lingers for Pakistan’s 190 million mobile subscribers: what will 5G actually change?

The government projects that average internet speeds will climb from the current 4 Mbps to approximately 20 Mbps once networks are fully operational. For a country where video streaming often buffers and large file downloads test patience, this leap carries tangible implications. But the transformation runs deeper than faster Netflix queues.

The World Bank’s 2024 report “The Path to 5G in the Developing World” identifies three distinct tiers of 5G value for emerging economies. The first is enhanced mobile broadband—precisely the speed improvement Pakistan now anticipates. The second is ultra-reliable low-latency communications, which enables industrial applications: remote machinery operation, real-time quality control in manufacturing, and precision agriculture. The third, massive machine-type communications, underpins smart city sensors, utility grid management, and logistics tracking. 

For Pakistan, with its ambitions of becoming a regional data hub and IT outsourcing destination, the second and third tiers represent the true prize. But they remain distant without corresponding investments in fibre backhaul, data centre capacity, and—critically—devices.

The Smartphone Leasing Gambit: Can Pakistan Bridge the Device Divide?

Here lies the industry’s Achilles heel: you cannot consume 5G on a 4G device, and Pakistan’s smartphone penetration tells a troubling story. According to GSMA data presented at the August 2025 summit, while 68% of Pakistanis own a smartphone, only 29% actively use mobile internet—a usage gap of 52%, the highest among major regional markets.  Nearly 40% of mobile users still rely on feature phones. 

Enter the “Smartphone for All” initiative, a government-backed leasing scheme announced in February 2026 that now assumes urgent relevance. Under the programme, citizens can acquire smartphones valued between Rs10,000 and Rs100,000 through interest-free instalments spanning three to twelve months, with a minimum 20% down payment. Students, low-income individuals, and professionals are all eligible. 

Minister Khawaja has framed the scheme as essential to 5G’s success. “Officials have said the government is also encouraging wider adoption of 5G-compatible devices to support the transition to faster mobile networks, noting that a large share of phones used in Pakistan are locally manufactured while premium models are imported,” Arab News reported following her briefing. 

The arithmetic is straightforward: without affordable 5G handsets in Pakistani hands, the billions spent on spectrum will yield little beyond faster connections for an urban elite.

The ARPU Paradox: World’s Lowest Revenue, World-Class Ambition

Yet even if devices materialise, the industry must confront its existential challenge: Pakistan’s average revenue per user (ARPU) remains the lowest globally.  Operators extract a fraction of the monthly revenue that Indian or Bangladeshi carriers achieve, and a tiny sliver of developed-world averages. This fundamentally constrains the investment case.

The government has offered assurances that consumer packages will not see immediate price hikes, but operators face an unsustainable calculus. Nikkei Asia noted that “some experts skeptical about demand” remain unconvinced that Pakistani consumers will pay premiums for 5G when 4G meets most basic needs. 

The sector’s tax burden compounds the challenge. Combined taxes on mobile usage reach 33%, among the highest in the region, increasing consumer costs and suppressing demand.  The GSMA has repeatedly called for rationalisation, arguing that lower taxes would stimulate usage, expand the taxable base, and ultimately increase government revenues.

For now, the government has signalled no immediate tax relief. But Minister Khawaja’s emphasis on sustainable sector growth suggests a recognition that the current model cannot persist indefinitely.

International Interest: Why Mobile World Congress Is Watching Pakistan

Despite these structural headwinds, Pakistan’s 5G auction has attracted international attention that extends far beyond its borders. At the recent Mobile World Congress in Barcelona, multiple inquiries centred on the Pakistani market—its scale, its trajectory, and its potential as a manufacturing hub.

The interest is not merely academic. With India’s 5G rollout now well advanced and Bangladesh preparing its own auction, investors view South Asia as the next great connectivity battleground. Pakistan, with its young population, rising IT exports, and strategic location, represents a critical piece of that puzzle.

The armed forces’ vacation of spectrum in the 700 MHz band proved pivotal in unlocking this interest. That band, prized for its propagation characteristics that enable wider coverage with fewer towers, formed the cornerstone of Jazz’s successful bid. It also signals a mature approach to civil-military coordination on digital infrastructure—a prerequisite for any emerging market seeking serious foreign investment.

Regional Scorecard: Pakistan vs. India, Bangladesh, Nigeria

How does Pakistan’s 5G entry compare with its peers?

India conducted its 5G auctions in 2022, raising $19 billion and launching services later that year. By early 2026, coverage extends to most major cities, though adoption remains constrained by device costs similar to Pakistan’s. Bangladesh has announced plans for 2026 auctions but faces political uncertainty. Nigeria, Africa’s largest economy, launched 5G in 2022 and now counts over two million subscribers.

Pakistan thus enters the 5G race as a late adopter but not a laggard. Its advantage lies in learning from others’ mistakes: India’s high reserve prices initially deterred participation, requiring subsequent reductions. Pakistan’s more measured approach, emphasising sustainable pricing, reflects those lessons.

Yet Pakistan also carries unique burdens. No other major market combines such low ARPU with such high taxation. No other faces the same intensity of energy reliability challenges, with operators paying commercial tariffs for power while enduring frequent outages. 

The Economic Multiplier: Can 5G Really Add $10 Billion to GDP?

Government briefings have cited a target of $10 billion in GDP contribution from 5G over the next five to seven years. The figure derives from Ericsson’s modelling of 5G economic impacts in emerging markets, which estimates that every dollar invested in 5G infrastructure generates multiples in downstream economic activity. 

The transmission mechanism runs through several channels: productivity gains in manufacturing and logistics, new business models enabled by reliable high-speed connectivity, expanded IT exports, and formalisation of economic activity. Each requires not just spectrum, but the entire ecosystem of fibre, data centres, skills, and regulation.

Here, the GSMA’s “Unlocking Pakistan’s Digital Potential” report provides a sobering checklist of remaining reforms: releasing additional mid-band spectrum, permitting spectrum sharing and trading, reducing sector-specific taxes, expanding anti-fraud initiatives, and accelerating digital literacy programmes, especially for women and rural communities. 

The Road Ahead: Pilots, Politics, and Patient Capital

Next week’s pilot launches in select cities will mark Pakistan’s first encounter with live 5G networks. For the technologists who have laboured through years of policy uncertainty, it will be a moment of vindication. For consumers, the immediate experience may underwhelm: early pilots typically showcase capabilities rather than deliver ubiquitous coverage.

The true test comes in the six-to-eight month window that follows, as operators extend coverage to provincial capitals and—eventually—secondary cities. By year-end 2026, Pakistan will have a clearer sense of whether its 5G gamble pays off.

Minister Khawaja captured the balancing act required when she addressed operators alongside the PTA chief. “The auction process was designed to protect the rights of both the industry and consumers,” she said.  That compact—sustainable returns for operators, affordable access for citizens, and reasonable revenues for the state—represents the holy grail of telecommunications policy.

Pakistan has secured the spectrum. It has unlocked the investment. It has signalled, through the smartphone leasing scheme, a recognition that connectivity without devices is infrastructure without purpose. Now begins the harder work: building the networks, acquiring the customers, and proving that 5G can deliver not just faster speeds, but genuine economic transformation.

For a nation of 240 million, with the world’s lowest ARPU but among its highest reserves of youthful ambition, the stakes could scarcely be higher.

The conversation around an AI bubble often conjures images of economic disaster—a sudden, catastrophic market collapse. However, framing it this way overlooks a more nuanced and ultimately more manageable reality. The AI boom isn’t an “all-or-nothing” bet; it’s a supply-and-demand mismatch fundamentally rooted in mismatched timelines.

Understanding the Economic Bubble

In plain economic terms, a bubble isn’t necessarily a total fraud or a worthless idea. It’s simply a bet that got too big.

When investment pours into a sector, driving valuations to extreme highs, it’s based on an expectation of future demand. If the resulting supply (the products, services, or infrastructure built) eventually outstrips the actual, immediate demand at those elevated prices, the air comes out. That’s the bubble deflating.

The key takeaway is this: even good bets can turn sour if they’re made with too much capital, too quickly. The underlying technology or idea might still be valuable. However, the market’s expectation of when that value will be realized was simply too aggressive.

The AI Timeline Paradox

What makes the current AI situation so tricky is the extraordinary difference in speed between its two core components:

1. The Breakneck Pace of AI Software Development:
   • AI models are improving at an exponential rate. New, more powerful foundation models, innovative applications, and software tools are emerging every few months. This is the software-driven supply of AI capabilities.
2. The Slow Crawl of Data Centre Construction:
   • The hardware required to train and run these massive models—the specialised chips (GPUs), the enormous data centres, and the vast amounts of power needed to run them—takes years to plan, finance, permit, build, and bring online. This represents the physical infrastructure supply.

The “bubble” risk here is that the rapid software advancement and resulting investor excitement (the demand for AI) are outpacing the physical infrastructure needed to deploy it at scale.

We may have already built an incredible amount of powerful software “supply.” However, if the energy and data centre “demand” to actually use that software widely and profitably takes years to catch up, there will be a temporary glut. This creates a classic supply/demand mismatch.

A Timing Correction, Not a Total Collapse

Therefore, instead of fearing an “AI apocalypse”, we should prepare for a timing correction.

This correction might mean:

• Temporary Devaluations: Companies whose valuations are based purely on future potential without the current infrastructure or power to execute may see their stock prices deflate.
• A Focus on Efficiency: The scarcity of data centre space and power will incentivise companies to develop smaller, more efficient models that can run on less hardware, driving the next wave of innovation.
• Infrastructure Wins: Companies focused on the slow-moving infrastructure—power generation, specialised cooling, and data centre construction—might see their value hold steady or rise as the world scrambles to catch up to the software’s needs.

The AI revolution is happening, but our investment timelines need to align with our construction timelines. The “bubble” isn’t a sign the technology is worthless; it’s a flashing warning sign that the market’s eagerness has outrun physical reality.

A recent report reveals that Cuba has cut off internet access and is actively surveilling journalists. The rise of email access in Cuba has been slow, but it has been a boon for Cuban journalists outside of the country. However, the recent internet restrictions have made it difficult for journalists to report on current events in Cuba.

The Internet restrictions in Cuba have been in place for some time, but they have become even more severe in recent years. On July 12, 2024, Netblocks reported that the Cuban government had cut off access to information about the protests. This has made it difficult for journalists to report on the protests and has limited the flow of information to the outside world.

Key Takeaways

• Cuba has cut off internet access and is actively surveilling journalists.
• The internet restrictions in Cuba have made it difficult for journalists to report on current events in the country.
• The Cuban government’s actions have limited the flow of information to the outside world.

Overview of Internet Restrictions

Government Statement

The Cuban government has been known to restrict internet access to its citizens. In 2019, the Cuban government released a statement claiming that it would provide internet access to all citizens by 2020. However, as of 2024, internet access remains limited and heavily monitored by the government.

The government has been known to block access to certain websites and social media platforms and to surveil and punish individuals who express dissenting opinions online. The government has also been known to cut off internet access entirely during times of political unrest.

Internet Accessibility Impact

The limitations on internet access in Cuba have had a significant impact on the country’s economy and society. Businesses, particularly those in the technology and tourism sectors, have struggled to operate without reliable internet access. Additionally, the restrictions on internet access have limited the ability of Cuban citizens to access information and communicate with the outside world.

Despite the government’s promise to provide internet access to all citizens, the limitations on internet access in Cuba continue to be a significant issue. The government’s tight control over internet access has limited freedom of expression and hindered economic development.

Surveillance of Journalists

Surveillance Tactics

According to a report, Cuba has been cutting off the internet and surveilling journalists. The government is using surveillance tactics to monitor and control the flow of information in the country. The report suggests that the Cuban government is using various tactics to keep an eye on journalists, including:

• Blocking websites: The Cuban government is blocking access to websites that are critical of the government. This includes websites that are run by journalists and news organizations.
• Monitoring online activity: The Cuban government is monitoring the online activity of journalists. This includes monitoring their social media profiles, emails, and other online communications.
• Physical surveillance: The Cuban government is also using physical surveillance to monitor journalists. This includes following them, watching their homes, and listening in on their conversations.

These tactics are being used to silence journalists and control the flow of information in the country.

Reactions from Media Organizations

The report has sparked outrage from media organizations around the world. Many organizations have condemned the Cuban government for its actions and have called for the government to stop its surveillance of journalists.

Reporters Without Borders, an international organization that advocates for press freedom, has called on the Cuban government to stop its surveillance of journalists. The organization has also called on the international community to put pressure on the Cuban government to respect press freedom.

The Committee to Protect Journalists has also condemned the Cuban government’s actions. The organization has called on the Cuban government to stop its surveillance of journalists and to respect press freedom.

International Response

Global Condemnation

The international community has strongly condemned Cuba’s decision to cut internet access and surveil journalists. The Inter-American Commission on Human Rights (IACHR) expressed its concern over the situation and called on the Cuban government to respect freedom of expression and the right to access information. The IACHR also urged the government to release all individuals who have been detained for exercising their right to freedom of expression.

The United Nations (UN) also issued a statement expressing its concern over the situation in Cuba. The UN Special Rapporteur on the promotion and protection of the right to freedom of opinion and expression, Frank La Rue, called on the Cuban government to restore internet access and to respect the rights of journalists. La Rue also urged the government to release all individuals who have been detained for expressing their opinions.

Human Rights Advocacy

Human rights organizations have also condemned Cuba’s actions. Amnesty International issued a statement calling on the Cuban government to immediately restore internet access and to release all individuals who have been detained for exercising their right to freedom of expression. Reporters Without Borders (RSF) also expressed its concern over the situation and called on the international community to put pressure on the Cuban government to respect the rights of journalists.

In addition, the Committee to Protect Journalists (CPJ) condemned Cuba’s actions and called on the government to immediately restore internet access and to release all journalists who have been detained. The CPJ also called on the international community to hold the Cuban government accountable for its actions.

Frequently Asked Questions

What measures has the Cuban government taken to limit internet access?

The Cuban government has implemented various measures to limit internet access for its citizens. The government has restricted access to the internet by implementing a state-controlled internet service provider, ETECSA, which has a monopoly on internet services in the country. The government has also limited access to certain websites and social media platforms that are deemed critical of the government or that promote dissent. In addition, the government has made it difficult for citizens to access the Internet by keeping the cost of Internet services prohibitively high.

How are journalists monitored in Cuba?

Journalists in Cuba are closely monitored by the government. The government controls all media outlets in the country and has strict regulations in place to prevent journalists from reporting on topics that are critical of the government. Journalists who report on sensitive topics are often subjected to harassment, intimidation, and arrest. The government also monitors journalists’ communications and internet activity to prevent them from accessing information that is critical of the government.

What are the restrictions for foreign journalists reporting from Cuba?

Foreign journalists reporting from Cuba are subject to strict regulations and restrictions. The government requires foreign journalists to obtain a special visa and accreditation before they can report from the country. The government also controls the content of foreign media outlets and has the power to censor any content that is deemed critical of the government.

In what ways does the Cuban government censor information?

The Cuban government censors information in a variety of ways. The government controls all media outlets in the country and has strict regulations in place to prevent journalists from reporting on topics that are critical of the government. The government also limits access to certain websites and social media platforms that are deemed critical of the government or that promote dissent. In addition, the government has made it difficult for citizens to access the Internet by keeping the cost of Internet services prohibitively high.

How does media control manifest in Cuba?

Media control in Cuba is manifested through the government’s strict regulations and restrictions on media outlets and journalists. The government controls all media outlets in the country and has the power to censor any content that is deemed critical of the government. The government also monitors journalists’ communications and internet activity to prevent them from accessing information that is critical of the government.

What legal protections do journalists have in Cuba?

Journalists in Cuba have limited legal protections. The government has strict regulations in place to prevent journalists from reporting on topics that are critical of the government. Journalists who report on sensitive topics are often subjected to harassment, intimidation, and arrest. The government also controls all media outlets in the country, which limits the ability of journalists to report on topics that are critical of the government.