PAKISTAN’s telecommunications industry has helped to not only generate a handsome revenue but also provide relief to people by providing jobs. It has, however, suffered from poor law and order, security issue and lack of interest of foreign investment since the Telecommunications Ordinance in 1994.
It led to the establishment of PTA, Frequency Allocation Board (FAB) and National Telecommunications Corporation (NTC).
The purpose of the first two — PTA and FAB — was to maintain fair competition and regulate the telecommunications industry and telecommunications services.
However, the PTA has failed ‘to maintain fair competition and regulate the telecommunications industry and telecommunication services.’
In the broadband Internet sector, the PTA has failed to maintain any kind of competition. The PTCL has clear monopoly, and has lowered its rates to an extent that there is no contest. Thus most broadband service providers are suffering. Many mergers are being planned and no one is ready to invest further, leading to downsizing and uncertainty.
So, a big industry has succumbed to the PTCL monopoly and lack of regulation of the PTA, which has allowed this without any notice. Proper regulation and healthy competition can attract foreign investment and can make the sector an important contributor to the economy.
Frequent suspension of mobile services, huge amount of GST, and blocking of online content are some other issues hurting the industry’s revenue, chasing away investors.
The PTA must reevaluate its policies to regain the investor’s confidence. Monopoly needs to be broken by setting a reasonable bare minimum on broadband tariffs.
Also, the PTA needs to ensure that its financial and business repercussions on licensees be within limits. A business-friendly regulator is essential to build investor confidence.
M. Sarfraz Arshad
Islamabad
