Pakistan’s Telecom Industry: Is the Honeymoon Over?

Posted on May 9, 2008
Filed Under >> Babar Bhatti, Science & Technology, Economy & Development
14 Comments
Total Views: 7959

Babar Bhatti

The telecom honeymoon in Pakistan which lasted about 5 years (2002-2007) allowed Pakistani consumers to leapfrog over older landline based infrastructure and get cheap and quick access to modern telecommunication technology. The investors, telecom businesses and Pakistani treasury - all made good money and it was a win-win situation. It seems that the golden period for Pakistan telecom is over. The spike in teledensity and corresponding load on the new infrastructure is causing a number of service issues. To add fuel to fire the telecom rates for calls to Pakistan and within Pakistan have started rising, causing a lot of concerns. Consider the following points from the last few months:

Deceptive advertisements by Mobile Companies
Rise in local call charges by PTCL
Calls to Pakistan made more expensive

PTCL forces Pakistan package on its customers
Customer service calls are not free any more
Telecom consumer protection laws still in draft
Other emerging cosumer gripes

Some people hold the view that given the tremendous progress made, complaining about telecom situation in Pakistan is not justified. Yes, there have been great advances made but if we do not fix the structural issues early on, we will lose much of that progress. Left unchecked we may even regress to a point where there’s plenty of competition but consumers end up without the services they deserve at a fair price. Broadband is an appropriate example. Pakistani public has been tormented with poor service and caps on the usage.

I believe that with the right regulatory measures, consumer protection laws and a code of ethics we can keep the telecom sector on the right track.

14 comments posted

Comment Pages: [2] 1 »

  1. Riaz Haq says:
    May 11th, 2008 10:03 pm

    I hope that the wireless carriers will now work on finding ways to offer more services, particularly data and location services, to augment their ARPU. For example, new data services services could improve the Internet penetration in Pakistan using the most ubiquitous device, the cell phone.
    Pakistan could lead the way to mobile Internet. Farmers could benefit by accessing market prices and weather reports via SMS. Instead of just signing up more voice users, the carriers need to think more creatively by offering more, better service to improve their top and bottom lines. There are myriad ways to keep the telecom/information revolution going in Pakistan. We have only just begun.

  2. Sabir says:
    May 11th, 2008 12:15 pm

    growth through new users is reaching its limits now it will ne more growth through new services and revenue centers.

  3. Sabir says:
    May 11th, 2008 12:13 pm

    Next step will be that companies will merge and consolidate.

  4. Tariq Sayeed Khan says:
    May 10th, 2008 7:57 am

    Very surprising that a same headline was used in AURORA magazine’s Nov-Dec 2007 issue, to describe the Television industry. Althoiugh a very common line I am sure, but nonetheless the writer could have shown some originality instead of coping other people’s work.

  5. zaheer says:
    May 10th, 2008 3:18 am

    well the problem is in our infrastructure due to which these issues arise. PTCl not giving proper internet speed telecommunications rising prices. But we can not deny the fact it was due to this huge comeptition in telecomunication world of pakistan due to which this progress has been made and people are enjoying benifits which were un imaganable before like free sms, free talk time and plus extra balance. Ithink this rise in prices will be temporary because the new companies will come in pakistan market becauses of huge margin of profit and competation will increase ultimately lowering prices but the consumer problem will remain due to lake of proper planing to attract consumers and the loyality of the consumers will also effect due to lake of planing.

  6. Babar says:
    May 9th, 2008 11:16 pm

    There are many aspects in which Pakistani telecom consumers enjoy great deals - SMS is one. The source of many problems is PTCL as it struggles with the competition. Overall situation with voice is not too bad. If broadband problems are addressed then we will be in much better shape.

Comment Pages: [2] 1 »


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