Do traditional telecom services have any future?

11 Oct, 2016

The advent of Next Generation Mobile Services (NGMS) has brought about an unprecedented shift towards the propagation of data services over traditional telecom services. With the latest generation of smart-phones and tablets rapidly penetrating the Pakistan market, their ability to connect over both traditional telecom networks as well as the latest Next-Generation Networks (NGNs) have led to severe competition amongst CMOs, ISPs and emerging OTT service providers in the region.
Interestingly, however, while established cellular operators in Pakistan's Telecom industry are struggling to cope with this new dynamic, Pakistan Telecommunication Company Limited (PTCL), Etisalat's subsidiary in Pakistan, is uniquely positioned to constructively direct this transition. With a vast fiber optics network serving as the underlying foundation of the country's line and wireless communications infrastructure, PTCL is strategically positioned as Pakistan's gateway to the World Wide Web, providing unparalleled data connectivity through both its satellite and undersea cable networks.
Increasingly blurring the line between communications and data services, this common network backbone has the ability to transport both voice and data traffic. As a result, a large number of telecom applications have now migrated to Internet and cloud-based protocols. For instance, once popular services such as SMS/MMS and voicemail, which previously ran over dedicated telecom protocols, are being increasingly overtaken by OTT software applications such as Viber and Whatsapp. What's more, the advent of video calls over data platforms such as Apple's Facetime or Microsoft's Skype has opened up an entirely new vista for telecommunications as we know it.
The preference of this new data driven communications infrastructure over traditional telecommunications-based networks is evident, for instance, in the latest steps taken by the Islamabad police department. The recently appointed Inspector General of the Capital Police force is currently pushing for the transfer of all official communications to specially designated Whatsapp groups. The instant messaging service which further allows the sharing of documents, pictures, locations, and video and voice recordings will replace the pre-existing f wireless radio network in conjunction with its accompanying recordings.
This latest example shows one of the many ways public and civic bodies have embraced such services as a tool for public engagement and social awareness. Various state and federal bodies, regulatory authorities and political parties have embraced the benefits of using such widely available platforms such as Whatsapp, Twitter and Facebook.
Recent estimates state that there are over 2.1 billion active social media accounts, about a third of the world's total population. Out of these 1.685 billion comprise of mobile social accounts, based solely on the growing popularity of these more data driven Next-gen networks. With Social Media giving birth to a whole new range of content encompassing multiple genres and sub-cultures, the amount of information even a mere meme or emoticon has now come to convey is a testament to how far the very concept of 'Communication' itself has been transformed.
Yet, while the popularity of these data services on the back of such advanced networks, have ushered in what we now call the 'Information Age', the question of what do with the traditional telecommunications infrastructure becomes increasingly poignant. Despite the fact that the prevalence of a data driven communications infrastructure has led to a spur of innovative solutions for both businesses and consumers, it has also prompted a shift in thinking amongst both service providers as well as regulatory bodies aiming to chart a positive course for the industry in the wake of such developments.
Perhaps the most evident drawback of this new dynamic is the declining popularity of traditional long-distance calls over the now seemingly obsolete IDD platform. With data services now increasingly substituting voice traffic over long-distance calls, the evolution of such traditional telecom platforms towards these now easily accessible internet-based platforms is a considerable cause of worry for both CMOs as well as for PTCL, which hosts the country's largest fixed line network.
As this transition from traditional telecom services to a multifaceted internet-based ecosystem plays out, it would be interesting to see how the varying interests of all stakeholders in the region's ICT industry plays out. With prominent CMOs lobbying regulators to ban and/or charge consumers for using OTT services such as VoIP in Pakistan, it is unclear whether the Pakistan Telecommunications Authority (PTA) or the Ministry of IT would endorse such a practice. Even though, the precedent for barring such services is already in place across the region (Voice calls over Whatsapp are barred in the UAE and Saudi Arabia) it is not clear how Pakistan's vast and rapidly growing consumer base would react to such a measure.
Still, while CMOs in the Pakistan telecom industry keep a keen eye on such developments, PTCL enjoys an enviable position with its firm hold over both lined and wireless broadband, as well as its traditional telecommunications infrastructure. The key decision going forward, however, is to decide to what extent to resurrect its traditional line-based infrastructure, while also maintaining the lead in further innovating the provision of wireless broadband in the country.
(The writer is a communication practitioner)

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