IN EARLY 2009, PTA felt that Pakistan was ready for 3G technology to penetrate the market. With teledensity up to 63%, over 100 million mobile users, the telecom sector already contributing 3% to the economy’s GD
P and a frequent talk of a rollout of the 3G services, PTA announced in August 2009 that the services will be rolled out very soon.
Since then we have had numerous seminars organized by PTA, themed upon 3G technologies and its importance for Pakistan. Even Qualcomm, a leadin
g US technology firm, was invited to participate and express its interest in the Pakistani telecom industry. The most recent seminar wrapped up with the PTA chairman stating “…..by the end of this quarter they would be able to roll out plans for 3G services once the policy is approved by the government”, a tune that has been played to the industry for two years, now. I ask, what is the delay?
For last two year, government is saying that they are very serious about launching 3G in Pakistan, but yet the only thing came out of such seminars are only and only statements and false promises of a launch. People are already using 3G enabled handsets, without the services being available.
Mobile telecommunication has had a large and significant impact upon economic growth, besides aiding the socioeconomic development. This impact may be twice as large for a developing country such as Pakistan, with mobile wireless technology, such as 3G, offering the means to enhance mobility and ease in our lives through improved and sophisticated services. Such technology would allow rural businesses and consumers to be connected and be at par with global news, markets and standards.
3G opens the doors to opportunities such as expansion in commerce, betterment of workplace dynamics, greater citizen access to mobile enabled healthcare and education services and steering the country towards being a more information based society. So far the telecom industry is the most attractive in terms of foreign direct investment (FDI), and reels in almost 30% of it. With 3G services, new ancillary businesses, such as the mobile application development, would open up, where the focus would be on local applications for the general population. This has the potential of greatly escalating the quality and speed of carrying out everyday tasks and business related work.
Only few years back, Pakistan was a regional leader in the telecom market, with one of the highest teledensities in the world. Even after the economic downturn when the markets slowed down, an opportunity presented itself, where 3G technology could have been launched and the telecom sector could capture a new wave of users, along with being ahead in the global standing. But the opportunity was never availed. Once regional telecom leaders, we are now fast getting left behind.
In 2008, India faced a great crisis with corruption poisoning their Telecom sector and resulting in the 2G Spectrum scam that cost the Indian government Rs. 1760 billion in damages. The former telecom minister A Raja issued licenses through illegal means and at throwaway prices to inexperienced, under qualified and ineligible companies, causing economic as well as reputation damages to the country. Pakistan’s economy could have never withstood such a tremendous setback, should learn from India’s mistakes and not venture along that platform. Instead Pakistan government should put serious effort into granting these 3G licenses based on merit of the company, and stick to the proper rules and procedures.
India eventually bounced back and finally launched 3G in 2010, along with China, who are now reaping the benefits. Today Nigeria and other parts of Africa have launched 3G, and the Middle East has taken a step further to 4G services. We must not waste time, and I urge the government to take a stand and work with the telecom sector in launching the services. They must figure out a way to support the IT and Telecom sectors allowing them to achieve their true potential and sustaining both the economic and social growth of the country.
Writer is the Chairman & CEO of NetSol Technologies Ltd.
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