KARACHI: Pakistan Telecommunication Authority (PTA) Chairman Dr Mohammad Yaseen is optimistic of prospects of continued growth in the telecom sector as leading companies such as Mobilink, Telenor and Zong operating inside Pakistan, have pledged to commit substantial investments to Pakistan in a bid to boost their respective networks and hence market share.
Addressing the serious issue of illegal SIMs, PTA chairman revealed that more than 11 million SIMs have been blocked after failing to meet verification standards of National Database and Registration Authority (NADRA). In order to eradicate the misuse of mobile phone SIMs and to regularise the data of mobile subscribers placed on SIMs, PTA has taken a number of steps to address the issue, in particular implementing extensive market surveys during the course of last year to gather information on the illegal sale of SIMs.
In tandem, 8.25 million SIMs not verified through NADRA were blocked, while 2.92 million SIMs were also blocked, in cases where ten or more SIMs were registered to a single identity card. Between 2009 and 2010, PTA introduced a new system for SIM activation, called 789, as part of its effort to tackle the SIM issue. Sustained monitoring of this new system is being carried out on regular basis, he claimed.
So far, numerous surveys have been carried out to ensure smooth processing and execution within the system. Action has also been taken against firms engaged in the sale of pre-activated SIMs and stern warnings given to mobile companies against the practice. In a drive against pre-activated SIMs, in January 2009, 12.62 million SIMs were blocked. Moreover, 2.86 million purchased SIMs are inactive as customers failed to complete the verification process through the 789 system.
To enhance this process, he elaborated; PTA introduced two more services namely “SIM Identity System 667” and “SIM Information System 668”. With the help of 668 system, 1.39 million SIMs have been regularized as 0.59 million unverified SIMs have been blocked. PTA also accommodated overseas Pakistanis. Mobile subscribers were facilitated in remote areas, as the 668 system was extended to the selected franchisees in these areas.
PTA plans to continue the streamlining process of SIM data. The focus is now shifting to complete the registration of SIMs registered to old NICs and update data. For this purpose, mobile subscribers are twice warned to get their SIMs registered through their CNIC. All SIMs registered against the old NICs were blocked July 26, 2010.
He also pointed out the relative importance attached to the telecom system of a country. Telecommunications in general and mobiles in particular are now considered to be an important tool in promoting economic growth, he explained. Telecommunication services are used in a wide range of economic activities, delivery of social services and government administration and have become integral to economic development.
High quality telecommunication systems ensure economic competitiveness. Mobile services have become an important link between manufacturers, wholesalers and retailers. Drawing an analogy, he claimed that mobile networks have become the central nervous system of the economy. Currently telecom sector consists of two percent of the GDP and has generated thousands of job opportunities.
Going over revenue figures, Dr Yaseen revealed that in the year 2008-09, the industry contributed over Rs 112 billion to the national exchequer in various tax-heads, while in the year 2009-10, the sector contributed Rs. 109 billion. He also informed Pakistan Today that the telecom sector invested over $11 billion in Pakistan in the previous five years while $6.3 billion in FDI was also attracted during the same period.
He also expected investments by all the telecom companies to rise as their business continues to pick up. Major investments are expected to come from Telenor, Mobilink and Zong. Analysing future trends, he declared that through the joint efforts of the government and operators, Pakistan has achieved 60.1 percent mobile penetration in its population. The performance of the telecom sector had remained outstanding and at the end of July 2010, the number of cellular subscribers reaching the historic benchmark of 100 million.
He cited forecasts by Business Monitor International (BMI) that indicates that in the next three years, mobile subscriber base will reach 120 million in 2011, 136 million in 2012 and 156 million in 2013. Highlighting efforts to ensure coverage in neglected regions, he claimed that the Universal Service Fund Company (USFC) is primarily responsible for aiding operators in the extension of telecom services to remote areas.
The total subsidy committed by USF is roughly Rs 15.17 billion, of which Rs 5.81 billion will be committed to projects in Balochistan. However, PTA also plays a role in the provision of services to remote areas by reducing license fee in several areas and spectrum fee for the complete tenure of the license of WLL operators in Balochistan.
He also stated that the preservation of quality also took precedent. Therefore PTA has been monitoring the service quality of operators since 2002 through drive tests/surveys across Pakistan. A comprehensive service quality survey was carried out from March 2009 across Pakistan and mobile operators were served with show cause notices when they failed to meet quality standards.
