In Focus: Telecom Sector (22052008)

Pakistan’s Telecom sector has witnessed tremendous growth primarily because of well regulated environment provided by the regulator, PTA and the privatization of the incumbent PTC. While providing level playing ground to the various new entrants and existing players alike, conducive environment can be witnessed in the sector with the primary beneficiaries for such healthy competition being the customers at large.
Last few years has seen continuous rise in flow of foreign direct investments into the country suggests rise in infrastructural networks posing positive prospects for the sector providing optimum coverage and better quality services in the country. With requir ments for Telecom, Information and Technology services on the continuous rise, foreign entities have shown ample interest in the local market with global companies primarily entering the cellular version of the sector, with minor focus on technology and outsourcing services.
The telecom giant PTCL, has remained the primary driver of the sector with its strong subscriber base at the fixed line and WLL telephony and well supported by it cellular arm, Ufone with healthy brand name. Worldcall also has established its as a primary competitor for the giant with its major contribution coming from the WLL and broadband segments.
Recent figures issued by the regulator depicts stability in the fixed line market as well WLL market which saw a stable rise of about 1.9 percent month on month basis. PTCL remains the primary fixed line market leader with 97.13 percent, while only 2.87 percent by other operators.
With major plans for various players to invest heavily in the network infrastructure of the country especially rural Pakistan, these investment plans depict the overall promising prospects for the sector. While newer services including introduction of triple play services by Worldcall, Multinet and PTC, providing data, voice and video through one single connection is anticipated to bear fruits for the sector in medium to long term perspective. Also, provision of information technology and outsourcing services provided by various providers including NETSOL and TRG, has witnessed massive growth in the Communications Sector