ISLAMABAD, Feb 2: Prime Minister Shaukat Aziz said on Wednesday the deregulation policy was yielding good results in expanding the telecom business and attracting foreign direct investment (FDI).

Attending a presentation on Pakistan Telecom Authority he said the policy was the cornerstone of the reform agenda and had helped in creating jobs, introducing state-of-the-art technology and upgrading the social sector.

The prime minister said the deregulation and privatization of telecom sector was in line with the government reform policy, initiated by President Musharraf. The deregulation of PTA is a success story, which has helped effectively in regulation of telecom traffic and generating revenue, he said.

Shaukat Aziz said the political stability, economic growth and emergence of large middle class had necessitated the growth of telecom business and PTA must leverage all available opportunities.

He said that the Norwegian government had agreed to invest $1 billion in expanding the operation of Telenor. The prime minister directed the PTA to ensure transparency in awarding licences to telecom operators.

He also directed the PTA to play a role of proactive and preemptive regulator so that illegal telecom traffic was curtailed and sanctity of law maintained.

He said telecom sector was expanding at a faster pace as compared to other countries and was providing cheaper linkages to urban and rural sectors in a befitting manner. He called for institutionalizing the legislation and implementing zero tolerance for violation.

Aziz appreciated the PTA's endeavours for auctioning two cellular licences for $291 million each, which has played a major role in bringing FDI. He proposed that the scope of private sector telecom operators be expanded to Azad Kashmir and the Northern Areas for the benefit of the people.

The chairman PTA, Maj-Gen. (R) Shahzada Alam said the Authority has awarded 12 LDI, 76 LL and 92 WLL, new licenses in 2004 and has embarked on an ambitious expansion programme, which will bring revolution in the telecom sector. -APP