Arooj Zulfiqar

In a bid to propel Pakistan into the forefront of the global digital economy, there is a dire need for restructuring the telecom market and a comprehensive regulatory review, reports WealthPK. "The telecom sector, pivotal to the country's technological advancement and economic growth, is hampered by outdated regulations and market inefficiencies that stifle innovation and investment," said Junaid Imam, Member IT at the Ministry of Information Technology and Telecommunication (MoITT). "Pakistan's telecom sector has witnessed substantial growth over the past decade. However, despite this progress, the sector faces numerous challenges. The key issues include inadequate infrastructure, regulatory bottlenecks, spectrum management inefficiencies, and high taxation rates. These factors collectively hinder the sector's ability to expand services, improve quality, and reduce costs for consumers," he said. He emphasized the need for market restructuring to foster a competitive and innovative environment.

"The current market structure is dominated by a few large players, which limits competition and slows down the adoption of new technologies. Introducing more competition through policy reforms can drive down prices, improve service quality, and accelerate the rollout of advanced telecom services," said Imam. He said, "Our regulatory framework has not kept pace with the rapid technological advancement in the telecom sector. A comprehensive review is essential to address the outdated policies, streamline licensing processes, and ensure efficient spectrum allocation. Regulatory certainty and transparency are critical to attracting both domestic and foreign investments." "To thrive, the telecom sector requires a robust and competitive environment. However, this can only be achieved through strategic collaborations among the service providers and implementation of effective regulations," he said. "One of the critical issues is the lack of infrastructure sharing among the telecom operators, which has not only increased business costs but also impeded service delivery, especially in rural areas.

Over the years, fierce competition in these regions has led to a significant reduction in the number of internet service providers, shrinking from six to just three," he explained. "Therefore, restructuring the telecom market and implementing regulatory reforms can yield significant benefits for Pakistan's economy and society. Enhanced competition and investment can improve connectivity by expanding network coverage and increasing internet speeds, particularly in underserved rural areas. "It can also stimulate economic growth by creating jobs and fostering the development of digital startups and tech enterprises. Encouraging the adoption of cutting-edge technologies such as 5G, IoT, and AI can position Pakistan as a leader in the digital economy. Moreover, consumers will benefit from more choices, better services, and affordable prices."

Credit: INP-WealthPk