The Pakistan Telecommunication Authority (PTA) has selected a United States-based international consultancy firm, National Economic Research Associates (NERA), to provide consultancy services for the country’s upcoming spectrum auction aimed at improving Next Generation Mobile Broadband Services. NERA was chosen after being ranked among the top two firms in the technical evaluation and submitting the lowest financial bid of $0.750 million.
Spectrum Auction to Enhance 5G Services in Pakistan
According to sources cited by ProPakistani, the PTA issued a Letter of Intent (LOI) to NERA, giving the firm seven working days to respond. NERA will assist the Government of Pakistan in preparing and executing the spectrum auction by April 2025, which is expected to drive advancements in 5G mobile broadband services across the country.
Top-Tier Consultancy Expertise
NERA, headquartered in the United States with offices across Europe and the Far East, is recognized as one of the leading consultancy firms specializing in spectrum valuation and economic modeling. The firm has extensive experience advising both government agencies and the telecom industry on spectrum-related matters. Their expertise in commercial modeling and spectrum evaluation positions them as the ideal partner to guide Pakistan through its spectrum auction process.
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The consultancy will help the government design policy actions that promote increased infrastructure investment, broader broadband proliferation, and long-term sustainability for the telecom sector.
Aetha Consulting and NERA: Close Competition
Among the consultancy firms that submitted bids for the project, Aetha Consulting Limited and NERA were tied in technical evaluations. However, NERA’s financial bid was the lowest at $0.750 million, making it the preferred choice. The PTA opened the financial bids of all five qualified international firms on October 3, 2024, after which NERA was selected, following a thorough evaluation process with no concerns raised.
Key Responsibilities of the Consultant
NERA’s role will be crucial in shaping Pakistan’s 5G landscape, with several specific tasks outlined for the consultancy:
- Comparing Spectrum Practices: NERA will compare Pakistan’s current cellular and IMT spectrum assignments with regional standards, identifying gaps and recommending a phased auction approach for paired spectrum in the 700 MHz, 1800 MHz, and 2100 MHz bands, as well as unpaired spectrum in the 2300 MHz, 2600 MHz, and 3500 MHz bands.
- Spectrum Price Determination: The consultancy will determine the per MHz spectrum price in both USD and PKR for the mentioned spectrum bands, providing projections for the next three years. This analysis will use both demand and supply-side models and include flexible payment options such as dynamic installment plans.
- Valuation and Projections: NERA will also be responsible for submitting a comprehensive report on the valuation of spectrum, including the base price for paired and unpaired spectrum bands, along with future projections for the coming three years.
The Competitors in the Bid
Several other international firms were also in the running for the consultancy contract, including:
- Aetha Consulting Limited
- Detecon Consulting FZ-LLC
- Frontier Economics Limited
- KomKonsult (Private) Limited
Each firm submitted technical and financial bids, but NERA’s combination of top-tier technical expertise and the most competitive financial bid secured them the contract.
Future of 5G in Pakistan
Pakistan’s 5G spectrum auction, planned for completion by April 2025, represents a significant step toward enhancing mobile broadband services in the country. With the guidance of NERA, the government aims to foster innovation, drive investment in infrastructure, and support the growth of the telecom sector. By carefully designing the auction and addressing pricing, rollout obligations, and flexible payment options, Pakistan hopes to stay competitive in the global race toward 5G adoption.
NERA’s selection as the consultancy firm for Pakistan’s 5G spectrum auction reflects the country’s commitment to advancing its mobile broadband capabilities. With NERA’s global expertise in spectrum evaluation and economic modeling, the upcoming spectrum release is expected to enhance the country’s telecom infrastructure, benefiting consumers and businesses alike.
