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Telecom Industry in Pakistan
One must remember the olden days when having a fixed telephone connection wastaken as a privilege and a mark of elitism. People were used to wait for long to get alandline telephone connection and sometimes to no avail even after years spent onwaiting. Many of us might remember the days when an aristocrat was accompanied bya person with a large mobile set in his hand and it was not much back in the past. Thentelecommunication advancementcellular segment is considered an engine of growth for telecom sector in Pakistan,cellular Mobile sector continued to add
subscribers per month during last 2years, cellular mobile operators continued their aggressive marketing and networkexpansion; competition among operators became more intensive with aggressive entryof CMPak, a China Mobile subsidiary in Pakistan. CMPak with their brand Zong andTelenor have added significant subscribers very rapidly, several cellular operatorsoffered various Value Added Services at lower rates to attract more customers.The sector exhibited slow growth than year before, Cellular Mobile
jumpedfrom 39% in 2006-07 to 54.7% in 2007- 08, collective Revenues of the sector havegrown by 35% in the year 2007-08 against a record growth of 48% in the year 2006-07,cellular subscribers grew by about 40% in the year 2007-08, as against 82% in 2006 -07and more than 100% during 2005-06, Main reason for its slow growth could be therising inflation which affects the affordability, higher taxes, saturation of the urbanmarkets and low tariffs.
Telecom sector is contributing about 2% in GDP directly and if we include itsindirect contribution in other sectors This share comes to about 5%.It is expected that fixed as well aswireless sectors will grow considerably in next futureyears. Broadband in the last mile, Value added products and content developmentare rather barely explored markets and offer a great deal to an aggressive investor.3G services in major cities would take a slow start but will catch on fairly well andwill be a major contributor in satisfying consumer’s needs provided these are offeredat affordable cost with easy access, availability, reliability and with abundantcontent.