Pakistan 5G digital landscape poised for growth, driving economic development.
Pakistan Caretaker PM Anwarul Haq Kakar announces plans to launch the 5G auction in the next ten months. Paving the way for Pakistan’s digital ecosystem to thrive, fostering economic development and growth.
Pakistan 5G technology, designed for high speeds, superior reliability, and minimal latency, will revolutionize various industries. Advancing safer transportation, remote healthcare, precision agriculture, digitized logistics, and more.
Despite initiating 5G acquisition in 2021, Pakistan faced challenges such as intricate policy directions. Telecom industry resistance due to high costs, and judicial intervention.
Pakistan’s telecom industry is cautious about adopting 5G, expressing concerns about impracticality without complete 4G penetration. “We are examining the validity of this concern. However, the primary reluctance stems from the significant cost, estimated at $330 million or more, for the Pakistan 5G auction.”
The limited availability of Pakistan 5G-enabled mobile devices among the general public hinders progress in this area. Heavy taxes, commonly referred to as the PTA tax and the highest in the region, contribute to this limitation. Currently, less than one percent of the population has access to 5G-supported handsets, posing a significant obstacle. Moreover, the substantial investment required for building the necessary infrastructure presents an additional challenge.
Despite facing obstacles, the Pakistani Government remains committed to introducing revolutionary 5G technology. To achieve this, the Ministry of Finance has set up an advisory committee to propel the proposal. The government envisions the upcoming auction drawing new bidders and investors, offering a vital lift to the challenged economy. The auction proceeds stand ready to stimulate economic growth.
The country’s vital IT sector, boasting $2.6 billion in exports and employing around 150,000 professionals, plays a pivotal role. Dr. Umar Saif, the Minister of Information Technology. Suggests that the prospective introduction of 5G and increased 4G utilization may yield economic benefits of approximately $10 billion over the next three years.
As the world’s seventh-largest mobile phone market, Pakistan boasts 190 million users. The government, under the guidance of the IT Minister, seeks to boost the local production of top-notch mobile phones to fulfill the market’s need for 5G-supported devices.
Ranked fourth globally, Pakistan’s freelancing market provides significant income to millions.Anticipated improvements in this sector’s efficiency come from the integration of 5G technology. Recent research by Qualcomm, a US technology company, supports this idea, forecasting that 5G could generate over 2.5 million job opportunities and exceed $12 trillion in global revenue by the end of the decade. To fully harness this opportunity, Pakistan needs support from institutions and stakeholders.
Institutional capacity issues significantly delay the introduction of 5G in Pakistan, despite challenges in IT infrastructure and finances. An example of this is the spectrum-related matter.
In the language of telecommunications, spectrum represents an invisible force facilitating wireless communication for devices such as mobile phones, TVs, microphones, and satellites, utilizing radio waves. Spectrums vary in sizes, carry costs, and neglecting one is like allowing iron to gather rust.Although Pakistan has an abundant spectrum for 5G, institutional obstacles impede its full utilization rights.
Pakistan currently holds 269.2 megahertz of spectrum, and the capacity can double by including the spectrums held by the Pay TV operator SNL and CMPak. Both parties retain 140 MHz and 1.6 MHz of spectrum, respectively, leading to litigation for control. It is crucial that the esteemed courts, in the public interest, lift the stay. Additionally, the advisory committee must focus on resolving the longstanding legal disputes, spanning two decades, which have had adverse effects on the national treasury and denied people access to the latest technological advancements.
In the upcoming period, the need for extra spectrums will arise. Telecom companies are reluctant to buy due to the high cost in dollars. Therefore, the government needs to implement policy measures for a mutually beneficial scenario. However, the telecom industry should prioritize maximizing profits and delivering consumers innovative, fast, and unparalleled technologies like 5G, ensuring value for money.
Other sectors awaiting reforms include the consolidation and expansion of optical fiber penetration.
Based on reliable information, influential business figures are allegedly involved in a legal dispute, attempting to manipulate the spectrum sale for personal gain. It is advisable for the courts to conduct a thorough investigation and issue a decisive ruling to halt these harmful practices, which go against public interest and impede Pakistan’s economic development.
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