ISLAMABAD, Sept 19: Deregulation of telecommunications sector will help bring tremendous investment opportunities in the country.

These views were expressed by science and technology minister Prof Attaur Rahman at a seminar on “Frequency Allocation and Spectrum Management”, organized by Pakistan Telecommunication Authority (PTA) on Thursday.

The deregulation process will not only help provide high quality service to the customers at reasonable rates, but also contribute to the development of national economy, he said.

He said the deregulation would be the most significant landmark in the history of telecommunications and help bring new competitors and entrants with latest technology in this vital industry.

The minister said reforms were now leading the country to deregulation of the entire telecommunications sector for an active private sector participation in this field.

The telecommunications sector in the country, he said, had the potential to absorb investment of upto $15 billion, adding that even with more conservative estimates and current demand trends, Pakistan offered vast investment opportunities.

Mr Rahman said a good regulatory regime and development of highly professional set up was required so that the PTA could provide equal opportunities to all parties concerned, specially the new comers.

He said he had serious reservations about the way frequencies were allocated in the past, adding that the allocation should not be simply on first come first served basis that did not allow everyone to participate and get license.

“The frequency should be allocated on the basis of open competition through a national advertisement,” he added.

He said there was a great potential for expansion of Cellular Mobile Industry in Pakistan as was reflective from the 500 per cent increase in the number of mobile phone users with the introduction of Calling Party Pays regime over the last two years.

Appreciating the Pakistan Telecommunications Company (PTCL), he said it had taken a number of steps to meet the growing demands of the customers. These steps included 50 to 60 per cent reduction in charges on nationwide and international calls and 99 per cent digitalization of its network. The entire set up would be made digital by the end of this year, he added.

The minister said the company had earned a post-tax profit of over Rs19 billion during this fiscal year against Rs18 billion net profit last year.

He said fixed phone trend was changing with increasing demand for cellular phone, adding that by 2006, mobile phones would dominate fixed-line phones.

Pakistan’s mobile phone industry, he said, held great promise in the future. The advent of new technologies, rigorous and innovative marketing, efficiency and cost saving can lead to a rapid and consistent growth in this sector.