Fixed Local Loop (FLL) segment of telecom industry which is 98 percent owned by incumbent PTCL was not showing required growth, rather it was witnessing a decline in its expansion.
Besides capacity and coverage issues, this segment is facing stiff competition from cellular and wireless phone operators, which is resulting in customer churning and traffic migration.
Because of this, fixed line tele-density, which was 3.4 percent, a year ago has also declined to 3.2 percent. Pakistan Telecommunication Authority (PTA) in its quarterly report said only four new FLL licensees are operational with the network coverage in few cities of Punjab and Sindh.
It said the licensees are also facing difficulties in their roll-out plans and expected business. But few other companies are at their roll-out stage and it is hoped they would start their operations in the coming months. However, their coverage is limited with low capacity.
The report said incumbent Pakistan Telecommunication Company Limited (PTCL) lost 75,972 fixed line subscribers during first quarter of this year. Major loss of subscribers was in Punjab where fixed line subscribers reduced by 59,616.
However, during second quarter, 22101 subscribers were added due to expansion in the subscription of Sindh. PTCL is mainly focusing on the expansion of its subscriber base on wireless network. The report said new FLL operators including Worldcall, Brain net and Union Communication have a total of 14,848-subscriber base. Nayatel has launched its Triple-Play services in the commercial area (Blue Area) of Islamabad.