Telecom sector revenues hit Rs552 billion in FY19

PTA report says industry received $636m worth of investment

ISLAMABAD: Revenues of the telecom sector - one of the fast growing industries as more and more people opt for the internet and other digital modes in their daily lives - crossed Rs552 billion in financial year 2018-19, reveals a report issued by Pakistan Telecommunication Authority (PTA).

According to the Annual Report 2018-19, the telecom sector contributed over Rs96 billion to the national exchequer in terms of taxes, duties and levies, attracted investment of $636 million and its revenues crossed Rs552 billion in the financial year.

The sector also attracted $236 million in foreign direct investment (FDI) during the year.

According to the annual report that presents a comprehensive overview of PTA and telecommunication sector's performance, the telecom sector continued to grow in terms of subscriptions, revenue and teledensity.

It registered a steady growth in the number of subscribers that widened to 163.5 million by the end of FY19, a year-on-year growth of 7%.

Total teledensity reached 77.7% where main contribution came from mobile phone services. Pakistan has over 44,919 cell sites and subscription and usage of broadband services has grown exponentially.

Data usage over broadband networks was 2,545 PB in FY19 compared to 1,207 PB in FY18, a year-on-year growth of 113%.

In order to promote latest technologies, PTA said it had taken a number of initiatives. In a bid to set the stage for launch of 5G technology, the regulator unveiled plans for tests and trials of the new generation technology, which is expected to reshape the technological, social and economic landscape in Pakistan.

"PTA, as a regulator, kept playing its role prudently by ensuring an open, competitive, fair and well-regulated sector. It has made a meaningful contribution to the national economy by restricting import of mobile devices through grey channels by implementing the Device Identification, Registration and Blocking System (DIRBS)," the regulator said in the report.

Resultantly, the import of mobile phones through illegal channels has been minimised and tax revenues of the Federal Board of Revenue (FBR) have increased.

"Implementation of DIRBS has created incentive for the local assembly/ manufacture of mobile phones. PTA has also been working very closely with the State Bank of Pakistan (SBP) for enhancing digital payments," it said.

PTA emphasised that expanding 4G coverage through latest technology, promoting broadband connectivity, availability of additional spectrum to mobile operators, affordable 4G handsets, addressing Right of Way (RoW) issues, expanding fibre connectivity, improved quality of service (QoS) parameters, ensuring better coverage and 5G technology testing and preparations would continue to be its priority areas in the current year.

Published in The Express Tribune, March 28^th, 2020.

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