ISLAMABAD: The Telecom Operators Association of Pakistan (TOA) has formally cautioned the government against a rushed rollout of 5G technology, citing severe concerns over device affordability and the potential drain on foreign exchange reserves.
In a letter addressed to the Ministry of Information Technology and Telecom, TOA Chairman Amir Ibrahim emphasized that a premature launch could result in an “expensive and empty” network that fails to serve the majority of the population.
The Affordability Gap
The association highlighted a stark reality regarding the current mobile landscape in Pakistan:
- Current 5G Handset Ownership: Only 2% of mobile users.
- Cost Barriers: Entry-level 5G smartphones start at approximately Rs. 90,000, with high-end models reaching up to Rs. 700,000.
- Usage Gap: Roughly 25% of mobile customers in Pakistan still do not use 4G mobile broadband, a decade after its introduction.
“Technology introduction by itself does not transform societies. Using that technology does,” the TOA stated, noting that adding 5G capabilities increases manufacturing costs, pushing devices further out of reach for mass-market consumers.
Economic and Social Risks
The TOA warned that focusing on rollout timelines without addressing demand-side barriers carries several risks:
- Digital Divide: 5G may only benefit a small urban elite, further isolating those in rural or lower-income brackets.
- Capital Diversion: Capital could be diverted from improving basic 4G connectivity, which remains the backbone of the country’s digital economy.
- Underutilized Infrastructure: A lack of compatible handsets could lead to multi-million dollar networks sitting idle.
Proposed Solutions
To ensure a successful transition, the association urged the government to adopt a more balanced approach by:
- Reducing Taxes: Lowering the taxation on 5G-enabled handsets to make them accessible.
- Financing Models: Introducing smartphone installment options to help consumers upgrade.
- Spectrum Realism: Aligning spectrum auction policies with the actual purchasing power of the Pakistani consumer.
The TOA concluded that for 5G to be a national success rather than a failure, the government must prioritize the ability of ordinary citizens to connect to and find value in the new network.
