TELECOM SECTOR: A NATIONAL ASSET

Pakistan has historically been a highly competitive telecom market with cellular mobile operators enabling "digital inclusion" at the national level with some of the lowest tariffs in the world. Over the last five years, average monthly data usage by users was 2G. B has increased to 7 GB. Mobile phone users in Pakistan spend an average of "one dollar" per month. The US has an average of $46, Canada $41 and Bahrain $39. If Pakistani mobile users are compared globally, Pakistan is ranked 267th out of 269 telecom companies operating in the world and where consumer behavior is cautious and they are not giving significant profits to cellular companies. So the telecom sectors there do not invest in providing growth and innovation because they are not getting substantial return on such investment. Mobile phone service providers in Pakistan are going through tough times like the country, which can be seen from their periodic press releases, lack of interest or participation in social work and not launching expansion projects. . At least 2 mobile companies in Pakistan have experimented with 5G but it is yet to be launched. Last month (October 2022), it was announced by the federal government that 5G service will be launched in June 2023. But the chances of this also seem very low as there is not enough interest and investment from the mobile phone companies. Even if the 5G service is launched, this facility will be available only to those living in certain parts of Karachi, Lahore and Islamabad. It should be noted that earlier the federal government had given a deadline of December 2022 for the launch of 5G technology, but this deadline has been revised to March 2023 and then June 2023. The main driver of the economic difficulties that mobile phone (cellular) companies are facing is not only that the per mobile user is spending less than the global average, but recently petroleum products, electricity and gas prices, interest rate increases and Pakistani Due to the devaluation of the rupee, the ongoing (operating) expenses of these companies have increased due to which the telecom industry is facing a kind of existential crisis. This can be easily understood from the statistics that the 2 cellular mobile operators of Pakistan have reported a combined revenue of around fifty billion rupees during the first half (six months) of the year 2022 and this is not the first time that mobile companies have made billions of rupees annually. For the fourth consecutive quarter, the income of Mobilink (also known as Jazz) has suffered negative growth for foreign investors in terms of US dollars. The ongoing (operating) expenses of mobile companies have increased by an average of (almost) twenty percent compared to last year, while the income of this industry has not increased significantly. If the mobile phone companies increase the price of their services by 10% to cover the 20% cost increase, it is feared that a large number of mobile users will further reduce their spending (mobile phone usage) and that is the point. It has been repeatedly pointed out that the government should find a middle way (solution) through tax exemptions imposed on cellular companies so that the telecom sector can not only maintain the quality of existing services but also 5G and mobile. Be able to provide other services over the phone including fulfilling your social responsibility. The main issue is that telecom companies are charged a separate fee for introducing new services (like 5G) and how this is possible in a situation where most of the users have limited use of mobile phones. And the government also expects more revenue and fees from the telecom sector, so where will the foreign investment in this sector come from and why should the investor who wants more profit turn to Pakistan. For example, during the year 2004-2005, three mobile phone operators paid more than 29 crores (291 million) dollars individually for telecom licenses and when in 2019 they applied to the government agency for renewing the permits (licenses). Referring to the increase in renewal fees by 55%, $450 million (450) million was collected per operator and if this increase in renewal fees is seen in terms of depreciation of the rupee, it is a 360% increase. Similarly, fifty percent of the fixed fee of 486 million dollars for license renewal was paid in advance while the remaining amount was paid in five annual installments, but due to the limited sale and availability of dollars, mobile phone companies faced an uncertain situation. On which concern and displeasure have been expressed on various occasions and such statements are part of the record. It should be noted that mobile phone operators have invested about three and a half billion dollars in network expansion and upgrading during the last five years and this sector generates about 96 billion annually in terms of income tax, customs duty, withholding tax and other revenues. Paying Rs. There are no signs of economic stability in the current economic (macroeconomic) situation of the country and if this situation continues, the introduction of 5G service may not be possible even in the year 2023 and the telecom industry will limit its services instead of development and innovation. Limiting their standard and modern facilities only to big cities and business centers.