May 30, 2011

IT tele-density needs sane approach


The slow pace of progress in the IT sector in Pakistan leads one to ponder that some related sectors are on the regular decline. Now the country has failed to maintain its status of a county with highest tele-density among SAARC nations as India has now superseded a top position in the region with overwhelming adoption of technology and telephony services by it masses. Pakistan’s tele-density remained highest among the countries of South Asia till January 2011 with the modest annual growth during the last couple of years despite the cut-throat competition in the local telecom industry. Teledensity a common term that shows the number of main telephone lines for every 100 inhabitants. The fresh data shows that Pakistan’s total tele-density stands at 66.8 percent with overall 110.3 million users including mobile phone, landline, and wireless against India’s tele-density of 68.4 percent having total users at 826.25 million in February 2011. Now, the current number of telephone subscribers in India increased to 847.32 million at the end of April thereby registering a growth rate of 2.43 per cent. The overall tele-density in India reached 70.89 by March. While in Pakistan the current tele-density stands at 63.2 percent showing a regular decrease in the last couple of years as in June 2010, the local tele-density was 64.16 percent showing 2.14 percent growth from the previous fiscal year whereas the India’s tele-density remained at 56.83 percent during the same period. The Indian tele-density witnessed more than 2 percent growth on monthly basis whereas Pakistan tele-density grew with the same growth rate in six months particularly during the last couple of years. Though Pakistan has been witnessing constant growth in number of subscribers particularly in cellular sector, it could not retain its top position in South Asia as a country with the highest tele-density and now its tele-density stands at 63.2 percent. The detailed comparison between the IT sector of the two neighbouring countries has substantial need to dig out the reasons of the widening gap in growth rate. According to experts, socio economic conditions, per capita income, literacy rate, terrain conditions and availability of infrastructure are considered the main factors that potentially affect the tele-density rate. If socio economic are weak, per capita income on the decline, poverty dominates and literacy rate is low, it means the growth in IT sector would be on the regular decline. Similarly, terrain conditions with regard to its natural or topographical features or fitness for some use, of course, affect the IT growth. In fact, the growth of these factors and the improvement in tele-density are interlinked as strength of IT tele-density shows upward trend, the other factors will get improved. This comparative study of tele-density leads to the conclusion that either India has taken some corrective measures to improve the health of local IT sector or Pakistan is started back-pedaling. The government of Pakistan needs to come up with a mature approach to locate the reasons behind the declining trend in IT tele-density.
http://www.technologytimes.pk/2011/05/30/it-tele-density-needs-sane-approach/

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