Govt urged to centralise telecom policy interventions

KARACHI: Pakistan Telecommunication Authority (PTA) proposed the government to set up a centralised system to ensure uniformity in telecom policy interventions across the country, the regulator’s chairman said on Tuesday. 

“We asked the government to establish a central body to implement uniform telecom policies,” Ismail Shah, chairman of Pakistan Telecommunication Authority said, speaking at a 17th ITCN Asia exhibition and conference. “Prime Minster should head the committee much like other countries.”

The three-day conference started from Tuesday.  Shah said the provincial governments are also responsible for formulating and implementation of policies after the 18th amendment into the constitution.  

He further said government officials need to be sensitised to the benefits of digital economy in order to promote policy interventions for growth of information and communication technology sector. 

Chairman PTA said the policymakers need education on importance of telecommunication services for the society and economy.  “There is a stereotype about smartphone and its usage. (The new technologies) are considered luxury,” he said. 

PTA chief, on hurdles in the way of policy interventions, said policymakers feel frightened to introduce innovative framework as they can be questioned by National Accountability Bureau or Federal Investigation Agency.

Irfan Wahab Khan, chief executive officer (CEO) at Telenor Pakistan said at least Rs100 billion worth of universal service fund (USF), established by the ministry of information technology to promote telecommunication services in remote areas remains unutilised. 

Khan said the utilisation of funds can push up internet connectivity across underserved and un-served areas in the country. Government established USF in 2006. It has completed broadband for sustainable development projects in un-served areas. 

The fund consists of contributions (1.5 percent of adjusted revenues) by the telecom operators with no government funding.  CEO Telenor said the fund could also help in promoting 4G technology. Currently, below 10 percent of populations are connected to 4G devices as against the broadband subscribers of 45 million, including mobile internet users. 

On digital payment, he said the central bank should come forward to facilitate gateways, which enable cross-transactions from various telecom operators.  Currently, cash on delivery transactions dominate online shopping due to public mistrust and regulatory issues, he added. 

Easypaisa, which is the online financial service of Telenor Pakistan, is the largest mobile financial service with over 90,000 Easypaisa shops in more than 800 cities serving over 21 million users on monthly basis.

Telenor Pakistan, a subsidiary of Norwegian Telenor Group, has a subscriber base of more than 40 million making it the second largest mobile operator in the country after Mobilink. Telenor Pakistan launched its operations in 2005 and has so far invested over $3.5 billion in the country.

In 2014, the company acquired 3G licence for $147.5 million and obtained 4G/long-term evolution spectrum last year for $395 million.