Government organises another 3G seminar

Mobile operators still unwilling to buy third generation (3G) technology at high prices set by the government.


Omair Zeeshan December 27, 2010

KARACHI: The government is organising yet another event to try and sell third generation (3G) technology in Pakistan. This is one of many that have been organised earlier.

The revolutionary technology would allow broadband-like internet speed on mobile phones but mobile operators are unwilling to buy it at high prices set by the government.

The seminar’s theme is ‘whether 3G is coming’ and it is being organised in collaboration with Chinese technology and telecom giant ZTE Corporation (Zhongxing Telecom). It is the government’s latest effort to motivate the telecom sector to participate in a 3G auction.

India’s 3G auction brought the government $14.6 billion and hoping to mimic this unprecedented success, the government of Pakistan is expecting even higher revenues, say telecom industry analysts.

“Barring any new developments, none of the operators are willing to buy a 3G licence for the prices which are being asked,” said an analyst who asked not be named. 3G is very unlikely in Pakistan unless the government and a telecom operator sit down and agree to a price which is acceptable and economically feasible.

Industry observers explained that 3G services only worked on high-end mobile phones. “More than 80 per cent of Pakistan’s population cannot afford these sets which cost around Rs20,000,” the analyst added. “From the remaining 20 per cent, there would not be a lot of people who would be willing to pay for 3G services, which would for most of them provide frivolous benefits.”

The government’s expectations are unrealistic considering these numbers. And the seminars bringing in speakers to explain the benefits of 3G to the industry, which knows all of them very well, seem not very useful, said industry observers.

Published in The Express Tribune, December 28th, 2010.

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