Pakistan's 5G Dream Stalled by Fiber Gap and Costly Fees

The launch of 5G in parts of Pakistan faces severe structural challenges, according to a new report. A critical lack of fiber-optic backhaul, with only 15% of cell sites connected, severely limits network capacity and speed. High infrastructure costs and an annual Right-of-Way fee structure create a major financial disincentive for telecom investment. Furthermore, consumer adoption is hampered as roughly 90% of locally assembled mobile devices are only compatible with 2G or 3G networks.

Key Points: Pakistan's 5G Rollout Faces Major Infrastructure Hurdles

  • Only 15% of cell sites have fiber
  • Spectrum auction raised $507M
  • Fibering a site costs $10k-$20k
  • Right-of-Way fees are a permanent drain
  • Just 1% of handsets support 5G
2 min read

Pakistan's 5G launch faces steep infrastructural, financial hurdles

A report reveals Pakistan's 5G launch is hampered by low fiber connectivity, high costs, and a lack of compatible handsets, calling it more marketing than reality.

"closer to a marketing story than a working reality - Daily Mirror report"

New Delhi, April 6

The launch of 5G services in select parts of Pakistan is a milestone, but the county's structural financial and infrastructural bottlenecks makes the technology rollout "closer to a marketing story than a working reality," a new report has said.

The report from Daily Mirror flagged that Pakistan suffers from lack of physical infrastructure required to carry 5G signals, especially the network that connects cell sites to the core.

Globally, fibre-optic cable is the gold standard, capable of carrying terabits per second with latency measured in fractions of a millisecond. For 5G standalone networks, backhaul bandwidth above 10 Gbps per site and round-trip times under 5 milliseconds are essential.

Only about 15 per cent of cell sites are connected via fibre, while the remaining 85 per cent rely on microwave radio links that have fixed capacity ceilings, degrade in bad weather and cannot scale to 5G traffic load requirements, the report added.

The spectrum auction held in Islamabad in early March sold 480 megahertz of spectrum for $507 million and nearly tripled usable spectrum.

However, the spectrum auction, celebrated as a breakthrough, is only the first step "in a long and difficult journey," it said.

To fibre a single site costs between $10,000 and $20,000, and with tens of thousands of sites needing upgrades but such a capital commitment far exceeds the half‑billion dollars raised in the auction.

The problem is compounded by Pakistan's Right-of-Way fee structure, which levies PKR 35 to PKR 60 per metre every year, unlike India's one-time fee. This changes a one‑time capital expense into a permanent operational drain, discouraging investment.

Consequently, Pakistan ranked 76th out of 93 economies on the GSMA Fiber Development Index. "Without reform, fiberisation will remain the Achilles' heel of the country's 5G rollout," the report warned.

Pakistan also faces a demand-side problem as only one percent of handsets in the country support 5G. Roughly 90 per cent of locally assembled devices are currently limited to 2G or 3G compatibility, it noted.

- IANS

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Reader Comments

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Priya S
The handset data is shocking! Only 1% 5G-ready? In India, even budget phones now come with 5G. This shows a deeper issue with their local manufacturing and tech adoption. You can have the best network, but if people don't have devices to use it, what's the point? 🤔
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Aman W
As someone in telecom, the fibre gap is the real story. 85% on microwave? That's a non-starter for true 5G latency. Our own rollout had hurdles, but the policy push for fibre and relatively simpler RoW rules made a difference. Their model seems unsustainable.
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Sarah B
It's a sobering reminder that technology leapfrogging is hard. The financial numbers are stark - $500M from auction vs. billions needed for fibre. Without solving the basic infrastructure, it will remain a "marketing story" for urban elites while the majority stays on 2G/3G.
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Karthik V
While we should focus on our own digital divide, this analysis is important. It shows how crucial stable policy and one-time clearances are. Our PLI scheme for phone manufacturing helped the device ecosystem immensely. Hope they can sort their issues for regional stability and growth.
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Nikhil C
The report calls it an "Achilles' heel" and that's spot on. You can't build a 5G skyscraper on a 2G foundation. The annual fee per meter is a revenue tactic that will backfire by stifling investment. Short-term gain for long-term pain. Our experience shows that.

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