August 16, 2007	Thursday	Sha’aban 2, 1428

ISLAMABAD, Aug 15: The telecom sector owed its phenomenal growth and popularity to “true privatization”, said Ali Salman at the launch of his study Telecom Liberalisation in Pakistan: Implications for a Common Man here on Wednesday.

The study was an initiative of Economic Freedom Network of Pakistan. Conducted by Ali Salman from a private setup called Development Pool, the study was supported by the Friedrich Naumann Stiftung.

The study focused on the extraordinary growth of the telecom sector in a short span of time highlighting the benefits that privatization and free market economy brought to the masses.

According to its author, the telecom sector had gone through a restructuring phase in the last few years creating jobs, connecting people closely by bridging the gaps of communication as a result of positive regulatory policies and open competition.

Speaking at the launch, Mr Ali said: “Mobile phones remain no more a luxury but a tool or device that becomes essential for almost every strata of the society,” adding that the study also identified the best practices for possible liberalisation in various economic and business sectors providing directions for vital policy making and planning.

According to the author, the perception of customers about benefits accruing to them by changes in policy and improvements in the technology had changed from disapproval to a visible support over the last

four years.

And as the ranking of telecom sector in the eyes of consumers improved 80 per cent customers now benefited from value asked services compared with 34 per cent four years ago, Ali Salman said in his study.

Emphasising on the unprecedented efficiencies that had resulted in the industry, the study shared that 60 per cent customers gained from tele-banking compared with 36 per cent in 2003, 73 per cent believed that mobile phone had helped them significantly cutting time required to arrange a meeting by at least 50 per cent and 75 per cent business customers believed that their profitability was enhanced with regular use of mobile phones. Teledensity had been phenomenal from a four per cent in 2002 to 42 per cent in 2007 topping a huge customer base of 55 million.

The study also suggested that despite a hefty loss of Rs20 billion in revenues to Pakistan Telecommunication Corporation Limited (PTCL) from deregulation, cellular companies had contributed Rs77 billion to government revenues suggesting that public was the net gainer from this transaction of liberalisation.

Telecom was the only sector where true competition exists. And it was the driver for change that had empowered people, Mr Salman said, adding that “telecom Liberalisation is the best case scenario. Pakistan needs to apply its lessons in other sectors as well for greater economic growth which would eventually benefit the common man”.