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Telecom sector – Pakistan’s successful, favorite zone of investment

Published on 7th Mar, Edition 10, 2016

 

Presently Pakistan’s telecom industry investments, counting proceeds from 3G/4G spectrum auction and more contributions from operators in infrastructure, have crossed US$2.67 billion mark. The launch of 3G/4G (mobile broadband services) was a success story as within a short span its commercial launch has become a sensation, broadband subscribers have crossed 26 million and the broadband penetration has gone up from less than 3 percent to over 15 percent.

FOREIGN DIRECT INVESTMENT IN TELECOM SECTOR (US $ million)
 
FDI in Telecom
Total FDI
Telecom (%) Share
2003-04
207.1
949.4
21.8
2004-05
494.4
1,524.00
32.4
2005-06
1,905.10
3,521.00
54.1
2006-07
1,824.20
5,140.00
35.5
2007-08
1,438.60
5,410.00
26.6
2008-09
815
3,720.00
21.9
2009-10
373.62
2,199.44
17
2010-11
79.2
1,574.00
5
2011-12
-361.4
820.6
-44
2012-13
-404.1
1,576.00
-25.6
2013-14
429.9
1,667.60
16.3
2014-15
121
529
21

It is also analyzed that the introduction of 3G/4G (mobile broadband) has not only brought telecom industry at par with developed states in terms of new telecom services but also created more avenues of employment in the country. The fields include e-education, e-health, e-commerce, IT applications, content development and home-based businesses in the whole country.

The Government of Pakistan also said that owing to incentive-based transparent strategies of the government, the confidence of foreign business community to spend in Pakistan had been restored. The government’s transparent strategies had revolutionized the telecom industry and winning the confidence after the launch of 3G/4G in the recent past was a testimony to that. The government is trying to encourage the telecom firms to enlarge their outreach to far-flung regions of Pakistan so that majority of the masses benefit from the technology.

Pakistan offered an ideal environment for telecom industry as Pakistan had one of the greatest cellular phone subscriber base. It is believed, in open and transparent business strategies so that both domestic and overseas financiers are more motivated to explore the business opportunities in the country.

Experts also revealed that the teledensity in the country was one of the greatest in the region which made Pakistan a favorite destination for overseas financiers.

3G/4G SUBSCRIBERS
 Operator
Technology
2014-15
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
Jan-16 
CMPak
3G
2,898,094
3,452,634
3,769,542
4,088,019
4,376,991
4,752,974
5,083,597
4G
105,128
169,435
201,564
227,675
254,122
282,701
416,676
Mobilink
3G
3,656,345
4,031,096
4,909,203
6,043,233
6,807,898
7,248,761
7,648,548
Telenor
3G
4,162,616
5,091,114
5,485,083
5,768,102
6,003,031
6,373,498
6,777,091
Ufone
3G
2,570,283
2,881,504
3,518,635
3,773,921
4,023,196
4,293,739
4,548,824
Warid
LTE
106,211
139,897
156,827
174,727
192,917
214,046
235,239
Total
13,498,677
15,765,680
18,040,854
20,075,677
21,658,155
23,165,719
24,709,975

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