3G launch likely to be successful in Pakistan

New applications to contribute to business sector growth.

LAHORE: The Pakistan Telecommunication Authority (PTA) and the telecom sector are optimistic about the success of 3G (third generation) telecommunication services in Pakistan, despite resistance from some telecom operators.

Experts from the telecom sector are hopeful that 3G will be as successful – when it replaces the current 2G system – as 2G was when it superseded the 1G analogue system. The evolution of 2G to 2.5G and 2.75G has primarily been driven by the need to accommodate higher data requirements and 3G is the next step on this path.

They also explained that PTA is enthusiastic about 3G technology operators launching new data-intensive applications like video telephony soon after commencement of their services, as fast and reliable communication channels prove to be helpful for the business sector growth. As the technology proliferates in society, public sector services such as e-health, e-education and weather forecasting will also emerge. “If Sri Lanka, Nepal and Bhutan can launch 3G services successfully, Pakistan also ought to make a successful launch,” an expert said.

PTA authorities claimed that Pakistan’s telecom sector is ready for 3G. They explained that majority of telecom operators are optimistic about the launch as they have infrastructure already, which will help reduce capital expenditures associated with 3G deployment in the country.

“Additionally, there is a sizeable number of 3G-enabled handsets being used by youth and the educated sector. This segment may be relatively smaller as a percentage of total population, but in absolute terms it may be larger than population of some of the countries where 3G services are available,” said a PTA official.

Speaking to The Express Tribune, a senior official of a leading cellular company underlined that some vendors are not capable of facilitating 3G services. Because of their incapability, some vendors and their contractual telecom operators are reluctant to adopt the technology.

He said that some telecom companies will need to make a huge investment to improve the existing infrastructure, which has led to their reluctance.

PTA Director for Public Relations Khurram Mehran believes 3G services are unlikely to face any trouble in the country. Acceptability of the idea may take time, but exponential growth in the mobile phone usage over past few years has a lot to say on the potential of the telecom market. “Initially both 2.5G and 3G will coexist and end-users will have an option between using conventional voice packages and data-empowered 3G packages,” he added.

Responding to a query about 3G licence fee and the timeline involved, Mehran said that PTA is awaiting a decision from the government. To reach a decision, the government is taking various factors into consideration, which include feedback from all stakeholders. However, as per usual and past practices, an open auction will determine the fee.

Published in The Express Tribune, February 15^th, 2011.