Cellular operators may take Rs2.4 billion hit

Suspension of network due to security concerns to dent revenue

ISLAMABAD:

Pakistan's cellphone industry may take a hit of around Rs2.4 billion in revenue due to suspension of mobile phone services in different parts of the country on account of Ashura. Meanwhile, the government may suffer loss of Rs640 million on account of taxes.

According to the latest data available with the Pakistan Telecommunication Authority (PTA), the estimated annual cellular industry revenue for 2019 was Rs444 billion.

While various experts argue that forced network closure is not the right way to address potential violent activities and infringes various human rights, Pakistan's economy continues to suffer severely due to network shutdowns on different occasions.

Over the years, forced network closures have become a norm and seen as the key action to curb terrorism instead of improving other methods.

Network shutdowns are utilised as a tool to prevent terrorism, however, it also deprives law enforcement and citizens both to handle any emergency. The state of emergency is the only legal basis for network closures as per Pakistan's law, however, these happen frequently for safety and security purposes.

According to an industry analyst, "While people are already stranded due to unprecedented rains, especially in southern areas of the country, and rescue efforts demand operational networks and communication services for the safety and security of people, forced closure of mobile networks is a bigger risk to the safety of the people and it is an insensitive measure by the government. The decision of forced mobile suspension should be revisited to provide relief to people in this difficult time instead of adding to their miseries.

Published in The Express Tribune, August 29^th, 2020.

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