{
  "id": 754852,
  "title": "Cheap data, rising costs put Pakistan’s telecom economics in focus",
  "url": "https://urgent.news/2026/08/13/cheap-data-rising-costs-put-pakistans-telecom-economics-in-focus",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-13T10:03:30.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40434646/cheap-data-rising-costs-put-pakistans-telecom-economics-in-focus"
  },
  "original_language": "en",
  "account": "Pakistan's telecom industry faces mounting challenges as data consumption soars and costs rise, despite the country having some of the lowest mobile data prices globally. According to recent assessments by telecom experts, the average price for mobile data in Pakistan is approximately Rs29 per GB, while the average revenue per user (ARPU) remains around US$1 a month. This delicate balance, however, is under strain as networks require increased capacity to accommodate the growing traffic, and operators are set to incur significant spectrum payment costs following a recent auction. Moreover, ongoing network upgrades and the transition to 5G technology are adding to the financial burden. The rising costs of network maintenance, including energy, imported equipment, freight, and insurance, are exacerbated by inflation, currency volatility, and geopolitical tensions. With energy costs alone having surged from around US$60 per barrel in December to nearly US$84, telecom companies are already allocating an estimated 15-20% of their annual revenues to network expansion and modernization. The primary challenge now is that data traffic and the investments required to support it are growing faster than the revenue generated by each subscriber. As Pakistan enters a new cycle of spectrum payments, network upgrades, and 5G investments, the existing retail tariff framework, which requires prior approval from the Pakistan Telecommunication Authority (PTA) for significant tariff increases by operators with significant market power, is also coming under scrutiny. The framework, designed to protect consumers and competition, is facing challenges due to market consolidation, additional spectrum, rapidly growing data consumption, and the transition towards 5G. The changing landscape of Pakistan's telecom sector suggests that the regulation of retail pricing in response to these changes could become a critical aspect of the broader telecom policy discussion. Drawing from international models, such as those in the United Kingdom, United States, Canada, Australia, India, and Malaysia, Pakistan could explore more commercially determined tariffs while maintaining essential regulatory oversight. These protective measures might include consumer notification requirements, pricing transparency, and safeguards against misleading offers, discriminatory pricing, predatory conduct, and abuse of market power. The concept of \"sustainable affordability\" is gaining relevance in this context, emphasizing the need to maintain affordability while allowing sufficient revenues to support network expansion, improved service quality, and the adoption of 5G technology. As the sector grapples with this balancing act, the next test for Pakistan's telecom market may differ from previous challenges, as making networks financially viable to deliver affordable mobile data continues to be a significant hurdle.",
  "summary": "Telecom industry assessments suggest that Pakistanis are consuming more mobile data than ever at some of the world’s lowest prices, but the economics behind that affordability are coming under pressure just as the country enters a new cycle of spectrum payments, network upgrades and 5G investment. This was the consensus among different stakeholders and industry experts during a background…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}