NICTA has awarded 190 MHz of mid-band 5G spectrum to Vodafone Papua New Guinea without holding an auction. The regulator, the National Information and Communications Technology Authority, signed an agreement with the operator covering 90 MHz in the 2.6 GHz band and 100 MHz in the 3.5 GHz band. Two rival operators, Digicel and state-owned Telikom, have yet to sign.

What does the direct-assignment approach signal?

The decision reflects PNG's determination to channel capital into 4G and 5G infrastructure rather than maximise auction revenue. The country is the second-largest mobile market in the Pacific by population after Australia, and the third by financial value. NICTA categorises the frequencies as High Demand Spectrum and benchmarked the fee structure with advice from Windsor Place Consulting. The price itself has not been disclosed.

Why does rural coverage dominate the conditions?

Approximately 20 per cent of PNG citizens currently lack any mobile coverage, a gap the regulator equates to roughly 300 unserved sites. NICTA hopes operators will collectively reach about one third of those sites using their existing 700 MHz holdings for 4G, which is more cost-effective than deploying mid-band 5G in remote terrain. Operators will be expected to deliver quality-of-service upgrades alongside the coverage expansion.

What rollout milestones has Vodafone accepted?

Vodafone committed to launch 5G in the National Capital District, the administrative area around Port Moresby, and in at least one additional city within 18 months. The company also pledged to reach at least 20 per cent of the population within three years and at least 30 per cent within five years. The 2.6 GHz and 3.5 GHz frequencies are preferred for urban 5G deployments rather than rural extension.

What spectrum remains on the table?

NICTA published its 3.5 GHz band plan in July 2026. The plan reserves three contiguous 100 MHz blocks spanning 3.3 GHz to 3.6 GHz for the country's three mobile operators. The 2.6 GHz plan has stood since 2021 and covers 2500 MHz to 2690 MHz.

The regulator released a draft plan for the 2.3 GHz band simultaneously, indicating another potential 5G allocation. NICTA also issued draft guidelines in June 2026 for the lower 6 GHz band, from 5925 MHz to 6425 MHz, on a Low Power Indoor and Very Low Power basis for Wi-Fi 6E and Wi-Fi 7. Only Australia and New Zealand among Pacific nations have set aside the lower 6 GHz for unlicensed use to date.

Other bands under consideration include the L-band at 1.4 GHz, which Indonesia licensed in November 2025, and 600 MHz, which would benefit rural mobile coverage. NICTA has not announced timelines.

Where does Starlink fit?

Starlink Internet Services (PNG) received a PNG operating licence in April 2026. The PNG National Court ruled in the same month that the Ombudsman Commission had exceeded its powers in halting the application in February 2024 over consultation concerns with the mobile operators. NICTA had earlier decided in principle to license Starlink in December 2023.

All three mobile operators signed a reseller agreement with Starlink for enterprise services between late May and early June 2026. The satellite broadband service nonetheless poses a competitive threat to their residential bases. 5G-based fixed wireless access using the new 2.6 GHz and 3.5 GHz holdings could counter that threat by protecting higher-value customers from satellite-based poaching, the regulator's reasoning suggests.

How does this compare regionally?

Fiji adopted a similar set-fee approach for 5G spectrum in 2025, though with greater emphasis on revenue generation. Commercial 5G has now launched in Fiji, Samoa, Tonga and Nauru in the Pacific, alongside Australia and New Zealand, with Guam and American Samoa offering services in US-administered territories. PNG's entry would extend fifth-generation coverage to one of the region's largest previously unserved markets.

The regulator has not announced when Digicel and Telikom will sign. Both operators are reviewing terms already accepted by Vodafone. NICTA's next steps on the 2.3 GHz and lower 6 GHz bands remain subject to consultation through the remainder of 2026.