March 2004 updates

Pakistan Formally Launches Fixed-Line Telephony De-regulation
By Jamshed Masood in Islamabad, Pakistan. March 2004.

The Pakistan Telecommunication Authority, the industry regulator, has formally invited applications for local-loop and long-distance international licenses in Pakistan. The announcement effectively brings to an end the monopoly of incumbent fixed-line operator, the state-owned Pakistan Telecommunication Company Ltd. The Government of Pakistan was advised by leading international consultants who developed the de-regulation strategy, licensing process, spectrum resources allocation and interconnection framework to facilitate fair competition.

The government has opted for open access de-regulation policy characterized by low licensing fee and minimum rollout obligations in order to enable the investors to maximize their resource deployment for infrastructure development. The unique concept of "Access Promotion Contribution" has also been introduced in the de-regulation policy framework by which a major portion of international incoming call revenues would be passed on to local loop operators, thereby improving the viability of local loop business and accelerate development in this vital area to help improve the teledensity in the country.

The telecom sector has experienced a double-digit growth over the last eight years. However, infrastructure deployment has been over shadowed by the growth in demand which has continued to climb thereby creating a sizeable unserved population which would now be provided service by new operators in the fixed-line telephony sector. Details about the licensing process are available online at the Pakistan Telecommunication Authority website http://www.pta.gov.pk.