26 May 2017

Pakistan’s Telecom sector to have a balanced growth in the near future


Pakistan’s Telecom sector to have a balanced growth in the near future

Pakistan’s telecom sector is the third-fastest growing sector in the world mainly because of the increased investment in fixed-line, mobile networks and establishment of systems to aid in network growth.

During the last 6yrs, Pakistan’s telecom sector had contributed more than Rs 687 billion to the country’s economy and had also provided a large number of employment opportunities to the unemployed youth of the country, as per the data given by the Pakistan Telecommunication Authority (PTA).

In 2011, the telecom sector of Pakistan had a growth of more than Rs 117 billion and in 2012 the growth was Rs 109 billion, thus showing a 7 percent growth. In addition, taxes collected from the telecom sector also were a growth contributor to the overall tax collections made by the government.

In 2012, mobile phone companies, had to face some problems due to cellular suspensions and some other factors which made the year tough for operators as well as for subscribers.

Previously, as a part of security measures, the government had banned the sale of Subscriber Identification Modules (SIMs) at retail outlets, thus cutting down a slice of the sector’s income, thus the operators had to close down around 0.2 million retail outlets.

In Pakistan, at present 1,800 franchises of all the mobile phone operating companies are working in the country, mostly in urban areas, thus creating problems for the rural areas subscribers in buying new SIMs.

Mobilink, telecommunication service provider in Pakistan will mostly be at the top in terms of revenue generation, since the company might increase SIMs’ rates besides improving marketing tactics, after the introduction of new rules. But, Ufone and Zong will remain price efficient networks and would likely increase focus on “voice bundles” to attract additional subscribers.

Pakistan Telecommunication Company Limited (PTCL) would remain the dominant player as far as the broadband market was concerned. In addition, EVDO and DSL will remain the favourite technologies for broadband users.

Source: pakistantoday.com.pk

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