Telecom sector, during financial year 2003-04, has shown record growth as its share in overall GDP has increased up to 1.93 percent and its share in total Foreign Direct Investment (FDI) counted up to 22 percent while 0.33 million new employment opportunities have been created. With these positive trends, telecom sector of Pakistan is being considered as one of the most vibrant and lucrative sectors of the country. According to the official statistics, the total telecom revenues reached Rs 110.05 billion during the year 2003-2004 as against Rs 91.1 billion during the year before, showing a significant increase of 21 percent.
Revenue from each segment of the sector improved, whereby mobile sector had the highest revenue growth of 55 percent during the year 2003-04. Combined revenue of four cellular mobile operators reached Rs 21.4 billion during 2003-04 as compared to Rs 13.8 billion in the year 2002-2003 exhibiting an increase of 11 percent.
Revenue growth in the basic telephony sector remained slow the year due to the fact that people have been switching over to mobile services. Listed telecom companies, including Telecard, World Call Communication and World Call Multimedia, showed revenue increase of 52 percent, 44 percent and 59 percent respectively.
Industry comprising telecom manufacturers and vendors showed positive trends in total assets, where total assets of the industry increased by 18 percent.
It is hoped that this trend will continue next year. Over $2 billion investment is expected by major telecom operators, including mobile phone operators during 2004-05. Telenor & Warid are investing $400 million and $645.5 million in the year 2004-05 respectively. LDI operators DV Com and Red Tone have embarked on plans to make investment of about $76 million during the year 2004-05.
It is pertinent to mention that the PTA collected over Rs 30 billion from licensing of new mobile, fixed line services, and also Rs 15 billion alone from the auction of spectrum for WLL services.
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