‘Telecom operators are not ready to invest unless ARPU is increased’

ISLAMABAD: “Telecom operators are not ready to invest in the country unless their average revenue per user (ARPU) is increased, besides resolving the taxation-related issues.”

This was revealed by Dr Khawar Siddique Khokhar, Member (Compliance and Enforcement) while briefing the National Assembly Standing Committee on Information Technology and Telecommunication.

The committee which met with Mir Khan Muhammad Jamali in the chair grilled the regulator for poor voice and data services, observing that internet and voice services deteriorated during the last five years. The poor telecom services including data and voice may create challenges in the coming general elections in the country.

“Plunder on the public pocket is being made by cellular companies while collecting full charges for less than five seconds, as calls drop due to poor signals across the country including Parliament Lodges,” committee members added.

Naz Baloch said that Pakistan stands to be the worse in the region with respect to internet services and connectivity. Internet connectivity is pathetic across the country, she added.

The committee observed that they (the cellular companies) earned in the past and still earning that is why they are operating in the country, as there is no free lunch.

The Member PTA informed the committee that operators are facing multiple challenges related to high taxation, restriction on LCs, load shedding, high diesel prices, high power tariff as well as lowest ARPU. The telecom sector was given industry status but still being charged for commercial tariff which result in increasing their cost. The telecom sector would not invest in the country unless their ARPU is increased, besides resolving the taxations–related issues, he added.

He further said that benchmark in the operators licenses were increased, and they (operators) invested, but there is continuous need for investment to upgrade their capacity and meet the growing demand. The member said penalty of around Rs130 million was imposed, besides legal actions were taken against telecom operators for poor quality of services.

The ministry officials and Chief Executive Officer (CEO) Universal Service Fund Muhammad Haaris Chaudhry appraised the committee that there has been an ease in opening LCs, which would help in improving things. For the last one year, there was almost zero import of telecom equipment – required for upgrading capacity, but on the other side, there was a record increase in demand which deteriorated the services. However, they said that services are expected to be improved in the coming months.

The committee also questioned the rise in cyber crimes especially in Karachi, while recommending that there is a need for improvement in the FIA cyber crimes wing officials’ capacity.

The committee was informed that Prime Minister Shehbaz Sharif had constituted a high-level committee headed by Law Minister to propose recommendations and amendments in PECA law to make it more effective. The committee has almost finalised its report proposing improvement in legislation with respect to data collection to tackle the menace of cyber crimes more effectively.

Copyright Business Recorder, 2023