Telecommunication Sector in Pakistan

Telecommunication Sector in Pakistan

Telecommunication Sector in Pakistan
Pakistan is one of the fastest and largest growing cellular markets of the world with current market position of fourth (Pakistan Telecommunication Authority 2008). The present growth is influenced by the many effecting forces and de-regulation of govt. policies. This growth is also due to various favorable influences including maximum coverage, cheap tariff plans, deregulated environment. PTA (2008) reported that the percentage of Tele density has been improved and reached up to 55.6% out of 52.4% is only for cellular subscription.

The current growth trends of the industry envisaged that industry will attract two to three million cell phone services subscribers each month. These growth indicators have forced cellular service providers to improve services and increase network coverage in remote areas of Pakistan to cover 90% of population. Complete description of Pakistan telecom industry is available in section Boom of Pakistan Telecommunication, Telecommunications in Pakistan describes the overall environment for the growing mobile telecommunications and telephone markets in Pakistan.In 2008 Pakistan was the world's third fastest growing telecommunications market. Pakistan's telecom infrastructure is improving dramatically with foreign and domestic investments into fixed-line and mobile networks; fiber systems are being constructed throughout the country to aid in network growth.

The Telecommunications Ordnance of 1994 created (PTA), Pakistan's first independent telecommunications regulator, and the Pakistan Telecommunication Company Ltd (PTCL), a state-owned monopoly. This prompted the government to take a series of actions to improve the service by opening the telecommunications market. This was critical, but required a fine balance because opening the market and preserving PTCL were both important for the government.In July 2003 the government introduced a Deregulation Policy for the Telecommunication Sector, which allowed and encouraged foreign companies to invest in the Pakistani telecommunications market. The centerpiece of the deregulation was the establishment of two categories of basic services licenses: Local loop (LL), for fixed line telecommunication within the 14 PTCL regions, and Long-distance and International (LDI), for connectivity between regions." Two sets of criteria set by the regulatory authorities must be met before an operator is allowed to start operation: one for the issuance of a license and another for the maintenance of service quality. In 2006, Etisalat International Pakistan, a wholly owned subsidiary of Emirates Telecommunications Corporation, purchased a 26% stake in PTCL and assumed management control of the company.

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Telecommunication may have these objectives.
1. Promote efficient use of radio spectrum;
2. Increase choice for customers of cellular mobile services at competitive and affordable prices;
3. Encourage private investment in the cellular mobile sector;
4. Recognize of the rights and obligations of mobile cellular operators;
5. Provide for fair competition among mobile and fixed line operators; and
6. Provide an effective and well defined regulatory regime that is consistent with international best practices.

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