Telecom sector: VEON Group for addressing key challenges including ARPU

ISLAMABAD: The VEON Group on Wednesday pointed out the urgent need to address key challenges facing Pakistan’s telecom sector, including the lowest global average revenue per user (ARPU), a high taxation environment, increase in business costs—especially due to the soaring dollar-pegged spectrum prices—and the depreciation of the rupee over the years, which adversely impact investment appetite, posing a threat to ensuring consistent improvement in service quality.

Chief Executive Officer of VEON Group, Kaan Terzioglu, accompanied by VEON Group Director of Corporate Affairs Marine Babayan, and CEO of Jazz Aamir Ibrahim, met with caretaker Federal Minister for IT and Telecommunication, Umar Saif and Chairman Pakistan Telecommunication Authority Major General Hafeezur Rehman (retired) on Wednesday.

The official statement of the group noted that during the meeting, the delegation presented a comprehensive overview of Jazz’s substantial investments in Pakistan, surpassing $10.6 billion. These investments focus on advancing the country’s digital infrastructure, including mobile broadband expansion, fintech - JazzCash, cloud and cybersecurity platform - Garaj, and various digital lifestyle services - Tamasha and BiP.

While stressing Jazz’s unwavering commitment, along with JazzCash and Mobilink Microfinance Bank, to capitalise on all available opportunities to accelerate the realization of Digital Pakistan, the delegation also pointed out the urgent need to address key challenges facing Pakistan’s telecom sector, emphasizing that resolving these issues is crucial for realizing Pakistan’s potential for attracting international investments and accelerating the integration of future technologies.

Sharing his views, VEON Group CEO, Kaan Terzioglu, said that the mobile industry plays a crucial role in driving economic growth, championing digital inclusion, and enabling other sectors to thrive. Despite these contributions, he acknowledged that existing challenges hinder the industry from becoming sustainable partners for the future. To address these impediments, Terzioglu highlighted the swift implementation of policy interventions that the industry has been seeking for a couple of years now. These include delinking spectrum prices from the US dollar, adopting a model of extending license payments over a twenty-year period—a strategy successfully implemented in other nations, temporarily suspending industry contributions to the Universal Service Fund and Ignite (R&D fund), and ensuring rightful access to industrial electricity tariffs for the telecom sector.

He expressed gratitude to the IT and Telecom Minister and Chairman PTA for their time and productive discussion, underlining the collaborative efforts to strengthen and enhance the telecom landscape.

The IT Ministry stated that matters of mutual interest and related to telecom sector were discussed during the meeting.

Dr Saif said that the provision of quality telecom services to the masses is the topmost priority, adding that steps are on for better connectivity in the country.

He said that tech-neutral spectrum will be auctioned soon to provide better telecom services. Vowing to launch 5G, Dr Saif said that the Ministry of IT and Telecommunication will extend every possible cooperation to the telecom industry. He said that smart mobile phones would be provided on easy instalment soon.

DrSaif noted that Pakistan has a conducive investment atmosphere, urging Jazz to invest in e-agriculture, e-education, and e-health sectors. He also appreciated VEON Group for its efforts in the technology field and provision of smartphones.

Kaan Terziolu and Aamir Ibrahim said stable telecom systems are vital for the foundation of digital ecosystem and the economic stability of the country.

Copyright Business Recorder, 2023