Recently the telecom sector in Pakistan has attracted a lot of attention from international investors – and for the right reasons: it is one of the fastest growing sector with a huge potential market.
Looking at the billboards and media advertisements of mobile phones in Pakistan it is hard to believe that until a few years ago there was no one else except for a PTCL monopoly. The government seems determined to make use of this opportunity to attract foreign investment. For example, The International Herald Tribune recently reported:
Overseas investment in Pakistan’s telecommunications industry is expected to hold at $1 billion a year until at least 2009, said Shahzada Alam Malik, head of market regulator Pakistan Telecommunications Authority. As many as 50 percent of Pakistan’s 160 million people are expected to use telephones by that time, up from 23 percent in March this year and 4.3 percent in 2003, he said… Pakistan, South Asia’s fastest growing telecommunications market, added as many as 2.6 million cellular users in April, according to a report by the regulator released that month.
The increasing competition should theoretically be good for the Pakistani consumers as well, but only if the regulatory framework does what it is supposed to do. There remains some concern from the consumers about service and rates. The question is: Is Pakistan Telecommunication Authority doing a good job of looking out for the consumers in Pakistan?
Babar Bhatti is a Telecom professional based in Dallas, Texas. See more at Babar’s blog: State of Telecom Industry in Pakistan.
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