KARACHI:
Stakeholders in Pakistan’s telecom sector have praised 2021 as a memorable year for the industry, with several notable milestones reached over the 12-month period. SI Global CEO Noman Ahmed Said told The Express Tribune that the sector performed well this year. According to statistics, tele-diversity has reached 85.33 percent, while cellular and 3G/ 4G customers have increased to 187 million and 106 million, respectively.
“Telecom revenues are also increasing at a steady pace with each passing year,” Said highlighted, adding that in absolute terms, revenues were peaking within the information technology (IT) sector. He was of the view that the largest development this year was drastic increase in local manufacturing and assembly of mobile phones which triggered a reduction in imports. “Overall, 2021 turned out to be a robust year for the telecom sector,” he remarked.
The telecommunications industry shines
The telecom sector, according to Said, consists of a range of components, including internet, telecom, software, satellite, and cable. He went on to say that Pakistan was concentrating on the sector’s overall improvement as well as its subcategories. “We can learn from the top telecommunication firms in the world, such as Verizon, AT&T, and Deutsche Telekom,” he remarked. The start of Covid-19 resulted in a massive spike in telecommunication traffic in Pakistan, which the sector handled admirably, according to Said.
(ICT) expert Parvez Iftikhar
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The country saw growth in a variety of areas, but the most notable surge, he said, was in the e-commerce sector. During the year, data traffic in Pakistan’s rural and distant areas increased dramatically, he said. According to him, this has resulted in an increase in demand for high-speed connectivity, which should help Pakistan prepare for the arrival of 5G. “Since the beginning of the epidemic, telecommunication has emerged as one of the most important industries, and its continuous development should remain our primary goal,” Said stated.
The telecommunications industry shines
Echoing his views, Information and Communications Technology (ICT) expert Parvez Iftikhar underlined that the number of internet users grew substantially during the year mainly on the back of outbreak of Covid-19. According to him, the most important development during the year was the issuance of the Right of Way (ROW) policy which partially paved the way for infrastructure development in the telecom sector. The relief in taxes for the IT services and local assembly and manufacturing of mobile devices was another important achievement, he added.
“A stronger push to the segment came from the Universal Services Fund (USF) as it expanded broadband services to remote locations of the nation,” Iftikhar underlined. The spectrum auction in Gilgit-Baltistan and Azad Jammu and Kashmir was another huge achievement in 2021, he added.
Negative developments during the year included a failed spectrum auction, a protracted regulatory framework for infrastructure sharing, and a lacklustre adoption of the internet of things (IoT) in society, according to Iftikhar. “The internet quality, particularly in smaller cities, has remained
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</amp-ad>Not so bright performance
Iftikhar stated that there were no obvious initiatives to boost optic fibre penetration in metropolitan areas. Furthermore, Said believes that the biggest problem in the telecom industry this year has been the rise in cybercrime. He believes that corrective action is required to halt the growth of cybercrime. In terms of connectivity, he stated that students in Azad Jammu and Kashmir and Gilgit-Baltistan had to travel great distances to obtain a stable internet connection for their online lectures. According to the Speedtest Global Index, Pakistan’s internet speed on mobile devices was 17.95 megabits per second (mbps). As of January 2021, fixed broadband speeds will be 10.84 mbps.
(FDI) (PTA)
“This is quite low in comparison to neighbouring nations,” he said, adding that the causes could include a constraint on maximum possible bandwidth per site and a lack of fibre cable infrastructure penetration. “Fast internet is a growth engine with a significant impact on GDP (gross domestic product),” said Said. Faster money transfers, online shopping, and education will all benefit from increased speed, he said. “In summary,” he continued, “it has a good impact on the broader economy while also indirectly adding value to other industries.” According to the Pakistan Telecommunication Authority, the telecom sector contributed Rs278 billion to the national budget in 2020 and attracted $622.5 million (or 24 percent) in foreign direct investment (FDI) (PTA).
The telecommunications industry shines
“A national bandwidth policy is also on the cards,” he said, adding that a phased approach with initiative and drive was needed so that the performance could be measured against goals. “Technology affects almost every aspect of the 21st century,” Said underlined. “It has impacted human life from antiquity until now by solving problems associated with our daily life.” Pakistan is witnessing establishment of startups in Gilgit-Baltistan and adjoining areas and in the near future “we may even see its advancement as a smart city”, Said highlighted.
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