In a policy shift that could accelerate Pakistan’s digital transformation significantly, the government has announced the elimination of right-of-way (RoW) fees for telecom infrastructure deployment. Previously set at PKR 36,000 per kilometre — equivalent to approximately $129 — this fee will now be reduced to zero. The move is designed to dramatically cut the cost of laying fibre and deploying 5G towers across the country.
What Is a Right-of-Way Fee?
A right-of-way fee is charged by local governments and municipalities when a telecom operator wishes to lay fibre-optic cables under public roads, pavements, or land, or when erecting transmission towers on public property. In Pakistan, these fees varied across municipalities and had been a significant barrier to the expansion of fibre broadband and mobile tower infrastructure, particularly in smaller cities and rural areas where the economics are already challenging.
Why This Change Is a Game-Changer
The cost of rolling out telecom infrastructure in Pakistan has long been a deterrent for operators seeking to expand beyond major urban centres. By eliminating RoW fees entirely, the government removes one of the most cited barriers to building last-mile fibre connectivity and dense 5G tower networks. For operators like Jazz, Zong, and the soon-to-be-merged Ufone-Telenor entity, this could translate into billions of rupees in savings over the course of their 5G deployment programmes.
Impact on Fiber Broadband Expansion
Fiber-to-the-home (FTTH) penetration in Pakistan remains under 2 percent of the population, with approximately 2.6 million fixed broadband connections compared to a population of over 250 million. Only about 9 to 11 percent of mobile towers currently have fiber backhaul, well below the international benchmark of 40 percent. The elimination of RoW fees should reduce the cost of building fibre backbone connections. These links connect towers to the global internet. This will improve 4G speeds even before 5G is widely deployed.
5G Deployment Acceleration
Effective 5G deployment requires not just spectrum, but a dense network of base stations connected to high-capacity fibre links. Each 5G base station needs a fibre backhaul connection to carry the high volumes of data that next-generation speeds generate. With RoW fees eliminated, operators can plan more aggressive tower rollouts without the administrative and financial burden of negotiating with dozens of municipal authorities for access permits. Authorities expect the newly assigned spectrum to improve existing 4G services within four to five months, with commercial 5G launches in major cities expanding within six months.
Will Users See an Impact?
The elimination of RoW fees will not produce an overnight improvement in connection speeds for end users. The benefits will be felt gradually as operators invest the saved capital into building more towers and laying more fibre. However, over the next one to two years, users in areas that previously lacked fibre backhaul should begin to notice improved data speeds and network reliability as the infrastructure benefits compound.
The government has abolished right-of-way fees for telecom infrastructure. This is one of the most significant policy changes in Pakistan’s telecom sector in recent years. The government has also launched a 5G spectrum auction and plans three new submarine cables. Together, these steps show stronger commitment to closing the country’s digital infrastructure gap.
