Mobile cellular sector: a boost to private investment

Any economic sector, may it be cybernetics, dealing directly or indirectly with entrepreneur and clientele, in any form, needs a system, a system of administration, which has to be managed, streamlined and monitored with dexterity.
The mobile cellular sector was heading nowhere in the absence of a policy and licensing framework for over a decade.
Now, at long last, it is out of the matrix and the present Government's Ministry of Information Technology realising the vitality and sensitivity of the matter, has given paramount importance to the issue, and announced its first-ever policy for the mobile cellular sector.
Let's hope it's never too late. But the policy would be reviewed every five years, as the Federal Information Technology Minister Awais Leghari promised. Leghari claimed it would prove to be a futuristic policy and provide a solid ground for future excellence and advancement of the sector, to the national benefit, with a wide coverage at a bearable expense, higher teledensity, customers' added choices, a boost to private investment in the cell business, recognition of operators' rights, while ensuring uniformity of policy and regulatory regime with certainty for the future, in line with the best global practices.
A cursory glance at the striking features of the policy, a well formed endeavour, which rests largely on diverse elements of the sector, promising increased grant of licensing and enhancement of competition in the cellular function. It can be seen as progressive, customer-oriented and friendly.
This particular sector's operation remained on an ad hoc basis sans any substantial growth since 1991.
The Pakistan Telecommunication Authority (PTA) is responsible for awarding new licenses through integrated open bidding (license spectrum).
To start with, two new cellular operators (the sector is already operating in a competitive scenario with four licensees providing services) would get licenses for a period of 15 years.
They would be required to run nation wide operations and allowed to the GSM and CDMA technologies etc while the roll out obligations would include a coverage of 70 percent tehsil headquarters in four years or a minimum of 10 percent in each province.
The existing mobile licenses would get renewed in accordance with the new policy rules.
The licensees, operating at present have been given the choice to suit themselves to the new policy even for the remaining term of their existing licenses and to avail fringe benefits.
Going by some of its salient attractions, the policy's disposition seems customer-friendly, which is the password to a business boom.
It dishes out a customer charter, national roaming, number-portability, infrastructure-sharing, quality standard service and targets extended rural coverage to 80 percent of our underserved or totally neglected population of standard services contracts, international roaming and interconnection obligations.
The minister also underlined a uniform framework for existing and new cellular licensees, tackling issues like license terms and conditions, spectrum allocation, pricing, roll out obligations, quality of service standards and performance benchmarks.
New licensees would also be required to contribute towards the Universal Service Fund (USF), like fixed line licenses.
The policy is also committed to provide, to the customers, better qualitative and quantitative service, wider coverage at competitive prices.
Besides, the key benefits include additional investment to the tune of 1.5 billion US$ in the mobile cellular sector, additional job creation of 12000-15000 (direct and indirect), coverage to about 300 cities and towns including 70 percent of the tehsil headquarters, coverage to over 50 percent of the population (at present being 30 percent), a customer base of about 15 million (3 million to date), tax revenues from Rs 3.4 billion to Rs 16.9 billion (including GST, import duties and corporate tax; excluding activation tax and mobile teledensity from 2 percent to about 10 percent).
Mobile cellular, a wonder pocket/palm size radio communication device-wireless, global access, absolutely private, no unauthorised bugging no overhearing with no operators-sneaked into Pakistan and became a status symbol.
With the advent of the 21st century and after the introduction of the Calling Party Pays (CPP) regime in the year 2000, its use and misuse has increased unprecedentedly, with amazing speed, from a few thousands to over 2.2 million in the country.
According to a Pakistani the number of subscribers has more than tripled in the past two years. It is no more a status symbol but has become a necessity, regardless of rank or class. The number of cellular mobile use are multiplying every day.
Mobile cellular operators, vital role in the sector's development, facilitating access to telecommunication networks in Pakistan, is an acknowledged fact. As is the customers' reliance on this gadget as an alternative to fixed line telephones, evident from the rising number of customers.
The policy, anyhow, ensures that the fixed line telephone licensees are not placed in a disadvantageous position.
To achieve this objective, it has been mandatory for the cellular licensees to also contribute towards the R and D and the Universal Service Fund (USF).
The technology can be cost-effectively employed as an access solution as seen in other developing countries.
Due to the limited availability of frequency sources, restricted issuance of new licenses cannot be ruled out.
Last but not least, if the new policy's rules of business are strictly exercised, in letter and spirit, the objectives can be accomplished successfully.