Report by Engineering Post
The present era is witnessing a technological revolution centered on Information and Communication Technologies (ICTs. Mobile broadband usage–one of the most significant ICT innovations of the past decade — has rapidly increased in the 21st century , impacting economic development, particularly in terms of Gross Domestic Product (GDP).
According to a 2020 International Telecommunication Union (ITU) study, a 10 percent increase in mobile broadband penetration can lead to an impressive 2.4 percent uptick in GDP for middle and low-income countries in the Asia Pacific region, including Pakistan, surpassing the global average impact of 1.5 percent on GDP.
The telecommunication industry in Pakistan has undergone significant transformation in recent years, thanks to the development of 3G and 4G services and the regulator’s commitment to enable the advanced technologies in the country. PTA has constantly facilitated investment in the tele as a 4G Regulator, communication sector, which was fully deregulated and features multiple international telecommunication entities providing services. Recognized by ITU as a 4G Regulator, PTA was pursuing active collaboration with the industry players and stakeholders to develop the sector.
The country’s telecommunication services ( Mobile and Fixed) were experiencing healthy growth rates, with 194.6 million subscribers ( 80.7 percent teledensity) and 135.4 million broadband subscribers (56.1 percent penetration) till some time back. The industry holds substantial investment potential, with local investments of US $ 6.3 billion and Foreign Direct Investment (FDI) of US $ 1.4 billion from 2019 to March 2024.
Despite economic challenges such a higher business costs and inflationary pressures in FY 2024, the telecommunication sector showed resilience, expanding its services and generating telecom revenues of Rs 735 billion as per estimated figures. With ongoing service expansion and economic recovery in the medium to long term, broadband penetration was expected to increase further in the coming years.
During FY 2023, the telecom sector remained a significant source of revenue generation with R s 340 billion General sales tax, withholding tax, regulatory fees, initial and annual license fee, and other taxes.
PTA was regulated in a hybrid environment with merged physical and digital coundaries. In doing so, it was utilizing both conventional and contemporary regulatory tools, initiatives, and procedures essential needed and required for Pakistan’s transition from an emerging to a developed digital market.
