Pakistan & Gulf Economist

Rising 3G/4G users in Pakistan

International experts revealed that in the full swing of globalization process the world is now a global village. The advanced technology and newer innovation to develop the existing technology is the chief to make it happen. The overall economic activities of financial institutions, credit market, stock market etc largely depends on the utilization of the advanced technology of communication.

The continuous day to day economic activities from government to private sectors mainly depends on the availability of information. Developing countries as well as in many emerging economy development of telecommunication is urged and one of the most vital factors to improve the overall economic development and being a part of the global village. The rapid growth, development and contribution of telecommunication technology enhance the urgency of the presence of telecommunication industry in any economy as it is the technologically most advanced and significant tool for sharing information also a base for organizing financially valuable commodity market.

Experts also revealed that telecommunication, as a gift of modern science is mainly dissimilar from any other traditional infrastructure. From international market to local market, corporate communication to personnel communication, it is the prime way to sustain the continuous and instantaneous flow of sharing information. From business perspective of economic activities of modern world, by the communication channel telecommunication not only has significant influences over the economy in terms of GDP per capita but also serves many people through creating job opportunities. It is also recorded that a modern world also the economy without telecommunication cannot be thought for one moment.

In the developing countries like Pakistan, according to the statistics released from Pakistan Telecommunication Authority (PTA), the number of 3G and 4G users in Pakistan grew by 1.14 million from 112.75 million by end-April 2022 to 113.89 million by end-May 2022. The number of cellular subscribers in Pakistan also grew by 0.25 million to 193 million by end-May 2022 as against to 192.75 million by end-April 2022.

Teledensity for cellular mobile also increased from 87.6 percent by end-April to 87.67 percent by end-May. The Total teledensity grew from 88.74 percent by end-April to 88.81 percent by end-May.

The Monthly Next Generation Mobile Service (NGMS) penetration grew from 51.24 percent in April 2022 to 51.73 percent in May. Statistics showed that Jazz’s total count for 3G users fell from 6.222 million to 6.068 million by end-May, recording a fall of 0.154 million. Jazz 4G user numbers jumped from 36.567 million to 37.168 million in May.

Furthermore, Zong 3G subscribers decreased from 3.357 million by end-April to 3.272 million by May, while the number of 4G users increased from 27.952 million to 28.317 million during the period in review.

Sources also identified that Telenor 3G subscribers decreased from 3.696 million by end-April to 3.613 million by end-May, while the number of 4G users of Telenor grew from 21.216 million in April to 21.494 million by the end of May.

Lastly, Ufone 3G users stood at 3.576 million by end-May as against to 3.673 million recorded in the previous month. The number of 4G users of Ufone grew from 8.761 million by end-April to 9.052 million in May, registering a 0.291 million increase during the period under review.

No doubt, Pakistan’s telecommunications sector has significant potential. However, the quality of digital services available lags behind those of other states in our region. Sources recorded that the government of Pakistan presently proclaimed a rise in advance income tax (AIT) on telecommunication services. Sector-specific taxes, like those on smartphones or data usage, influence retail prices of such products and affect poor consumers, especially women. Unluckily the experts in this sector warned the government of “connectivity load-shedding” if prolonged electricity crisis continued, amid high fuel costs and stringent conditions for the import of batteries.

Moreover, leading cellular mobile operators (CMOs) informed this sector regulator that if the ongoing electricity load-shedding was not controlled, the telecom operators would be constrained to notify a force majeure condition. According to the CMOs, the circumstances were outside the control of main telecom service providers in the country. It is also said that the telecom operators were already facing service degradation because of the prolonged power outages in dissimilar parts of Pakistan. It is also said that the current energy crisis was resulting in unplanned and prolonged load-shedding in various parts of Pakistan, mainly in rural regions.

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