Page 91 - SAMENA Trends - January 2021

REGULATORY & POLICY UPDATES SAMENA TRENDS

Pakistan

Telecom sector has emerged as a prominent contributor to conducted number of successful raids against illegal VoIP setups
Pakistan’s economy and the sector contribution to the national this year to curb grey telephony. The Annual Report further
exchequer has shown an increase of 129% in year 2020 when revealed that PTA was ranked as 4thgeneration telecom regulator
compared to year 2019, despite economy being under pressure by the ITU, which places PTA in top five regulators of Asia-Pacific
due to COVID effects. As per Pakistan Telecom Authority (PTA) region. The Pakistan Citizen Portal recognized PTA as the best
Annual Report 2020, released here today, the sector contributed performing organization in complaint redressal satisfaction.
PKR 278 billion (including PTA deposits to national exchequer) in The above performance is a testimony that the sector and the
FY 2020 as compared to PKR 121 billion in FY 2019 registering regulator are moving in the right direction under the continuous
Year-on-Year growth of 129%. A surge in demand for telecom support and guidance of the Government of Pakistan in the form
services due to lockdown resulted in significant growth not only in of prudent policies and directions that spur the growth of digital
subscriber base but also in the usage of telecom services. Today, technologies. While commenting on the situation arising due to
data usage stands at 4,498 Peta Bytes(FY2020) as compared to Covid-19, the Annual Report further added that year 2020 was
2,545 Peta Bytes (FY 2019) showing a growth of over 77%. This an extraordinary year around the world, unexpected, unforeseen
substantial growth would not have been possible if the networks and unanticipated events unfolded and changed the way world
were not upgraded. The country currently has international was functioning. The new normal, replaced focus of the world on
bandwidth connectivity of 3.1 Tera Bytes and around 47,000 cell telecoms and digitalization, the global telecom sector responded
sites, of which 90% are 4G enabled sites. According to the PTA to the demands and so did Pakistan. Being at the forefront,
Annual Report, in the last five years, total broadband subscription while the country was acclimatizing to the changed conditions
in the country grew by 175%. Today broadband subscribers have towards normalization, PTA assured network upgradations,
crossed 90 million showing a growth of around 8% in FY2020. traffic optimization, load balancing that resulted in uninterrupted
Pakistan has a total broadband penetration of 42.2% in FY2020. service provision.
The telecom networks are currently available for 87% of the (January 15, 2021) pta.gov.pk
population and PTA is working with operators to increase their
network coverage for remaining 13% unserved people of the Federal Minister for Finance and Revenue, Dr. Abdul Hafeez
country. The total teledensity now stands at 82% with over 172 Shaikh, chaired the meeting of the Advisory Committee for the
million mobile subscribers and 2.2 million fixed-line subscribers. release of Next Generation Mobile Services (NGMS) spectrum
In 2020, the Foreign Direct Investment (FDI) across the economy in Pakistan held at the Finance Division. Federal Minister for
was affected due to global lockdowns, however, telecom sector Science and Technology Fawad Chaudhry, Federal Minister for
made an iconic share of 25% (USD 623 million) in the total FDI Information Technology and Telecommunication Syed Amin ul
made in the country. Total investment made by the local operators Haque, Adviser to the PM on Commerce Abdul Razak Dawood,
grew by 14.25% and a total of USD 734 million were invested Chairman PTA Major General (R) Aamir Azeem Bajwa, Secretary
locally. Total revenues of the sector reached PKR 537 billion Ministry of Information Technology and Telecommunication,
in FY 2020, which was mainly generated by mobile sector. The Executive Director Frequency Allocation Board and other senior
financial gains have been equally enjoyed by telecom consumers, officials participated in the meeting. The Chairman PTA briefed
the affordability of telecom services in Pakistan have improved the Advisory Committee about the latest developments in the
over the years and currently the per GB broadband prices are sale of available spectrum of next generation mobile services in
as low as USD 0.20 which is amongst the lowest in the region. the country. While appreciating the sale of maximum possible
Similarly, due to Device Identification & Registration System spectrum, the Finance Minister stated that it will contribute
(DIRBS) introduction government revenues increased many folds towards overall economic growth through digitalization and
with tax collection on handset imports. The local manufacturing improve the quality of broadband services in Pakistan, he added.
of handsets has enlivened the telecom ecosystem, with growth The Committee was also briefed that the hiring process for the
in local 4G device manufacturing crossing 34%. Pakistan consultants was completed in December 2020 as per procedure
experienced trials of 5G services which were one of the few firsts and newly hired consultants are on board for the sale of available
in the South Asia. PTA is aiming for spectrum auction of LTE, spectrum within the current financial year. The Finance Minister
VoLTE services in 2021 as a precursor to 5 G. The regulator is urged the consultants to follow a proactive approach and meet
also gearing up for auction of spectrum for high speed broadband the given deadlines effectively. He emphasized that the time is of
services in AJK & GB. PTA Annual Report informs that the essence in the release of NGMS Spectrum and the whole process
regulator this year awarded 110 licenses for different telecom of auction must be transparent for strengthening and expanding
services and issued 91 commencement of service certificates to communications / IT Services across the country. The next
the operators. PTA conducted QoS surveys across Pakistan for follow-up meeting of the Advisory Committee is expected to take
data, voice and SMS services and the operators were directed place in March, 2021.
to take corrective measures where they underperformed. PTA (January 15, 2021) telecoalert.com

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