A Towering Milestone: Pakistan’s Telecom Sector Begins Embracing Shared Infrastructure
Two weeks ago, Pakistan quietly crossed a major milestone on its journey to becoming a digitally connected nation. Jazz, the country’s largest mobile network operator (MNO), finally succeeded in transferring ownership of its mobile tower assets to a dedicated infrastructure company — a globally accepted best practice that has long eluded the country.
This transition, though delayed, marks a pivotal shift in how Pakistan may begin to view, regulate, and expand its digital infrastructure going forward.
What Are TowerCos and Why Do They Matter?
In telecom’s early days, every MNO built and maintained its own mobile towers. It was expensive, inefficient, and environmentally wasteful. By the early 2000s, operators globally began offloading this responsibility to specialised firms called TowerCos.
These companies own and manage towers, while MNOs simply rent space on them. The result? Lower operational costs, faster network expansion, and fewer redundant towers cluttering the skyline. From China and India to Malaysia and Indonesia, TowerCos dominate telecom infrastructure in Asia.
Yet in Pakistan, MNOs still own around 80% of towers—a stark contrast to regional peers.
Jazz’s Journey: Three Attempts in Eight Years
Jazz’s efforts to divest its tower assets date back to 2017. That year, it established Deodar, a subsidiary to hold its 10,500 towers. A major deal was struck in 2018 with Edotco, one of Asia’s leading TowerCos. Valued at $940 million, it was a landmark moment—until it hit an opaque regulatory wall.
After another failed attempt in 2022 with a UAE-backed consortium, Jazz finally secured a deal in December 2024 with Engro Connect, a subsidiary of Engro Corp. The $563 million transaction received approvals from both the Pakistan Telecommunication Authority (PTA) and the Competition Commission of Pakistan (CCP). The Islamabad High Court‘s green light just weeks ago sealed the deal.
A Case of Missed Opportunity — and a Warning
Why did it take eight years and three failed transactions for Pakistan’s top MNO to implement a standard global practice? Bureaucratic inertia, regulatory ambiguities, and an outdated policy mindset may all share the blame.
Telenor Pakistan faced similar hurdles. Its attempt to sell towers via its subsidiary, Orion Towers, failed. In frustration, Telenor’s Group CEO even declared that doing business in Pakistan had become “very challenging.” Even the company’s planned exit is being delayed, highlighting deeper issues within the regulatory ecosystem.
The Fibre Problem: History Repeats Itself
The same inefficiencies plague Pakistan’s fixed-line internet infrastructure. Just as MNOs once built overlapping towers, ISPs today lay duplicate fibre optic cables along the same streets—especially in high-income neighbourhoods—while ignoring underserved areas.
The result? Pakistan’s low fibre penetration, higher costs, and limited coverage.
This could be fixed by Telecom Infrastructure Providers (TIPs)—neutral third parties who own and operate fibre networks that multiple ISPs can rent. Much like TowerCos for mobile networks, TIPs improve utilisation, lower costs, and accelerate digital access.
Countries like Singapore, Sweden, and New Zealand have shown the effectiveness of this model. Pakistan even has a TIP licence category, but the regulatory framework remains incomplete. Without clear policy and enforcement, ISPs continue to dominate fibre access and resist sharing.
Policy Shift Needed: From ISP Subsidies to Infrastructure Investment
Currently, Pakistan’s Universal Service Fund (USF) provides subsidies to ISPs to expand services in underserved areas. However, this approach creates fragmented, operator-specific networks.
A smarter strategy would be to redirect funds to neutral TIPs, allowing any ISP to deliver services over shared infrastructure. This shift would not only improve coverage but also eliminate redundant spending and improve equity in digital access.
The Way Forward: Policy-Backed Neutral Infrastructure
Pakistan’s digital future depends on affordable, high-quality connectivity for all, not just urban elites. For that, neutral infrastructure—both wireless and fibre—is essential.
The key lies in regulatory support, policy clarity, and incentives for private investment in shared assets. This is how countries leapfrog ahead—not just catch up.
The recent Jazz tower deal is more than a business transaction. It’s a wake-up call for policymakers to embrace neutral infrastructure models that have powered digital transformation across the globe.
Without decisive reform, the dream of a fully connected Digital Pakistan will remain unfulfilled—not for lack of potential, but for lack of courage and coordination.
