The Pakistan Telecommunication
Ordinance 1994, established the primary regulatory framework for the
telecommunication industry including the establishment of an authority.
Thereafter, Telecommunication (Re-Organization) Act no XVII was promulgated in
1996 that aimed to reorganize the telecom sector of Pakistan. Under Telecom
Reorganization Act 1996, Pakistan Telecommunication Authority (PTA) was
established to regulate the establishment, operation and maintenance of
telecommunication systems, and the provision of telecom services.
Cellular mobile services in
Pakistan commenced in 1990, when Government of Pakistan awarded two cellular
mobile telephony licenses to M/s Paktel and M/s Pak Com (Instaphone). Third
license was issued to M/s Pakistan Mobile Communication Limited (Mobilink) in
1992. After the establishment of PTA, a fourth license was issued to M/s
Pakistan Telecommunication Mobile Limited (Ufone) due to slow growth in the
cellular sector. Since then, PTA extended number of incentives for the growth
of this sector including drastic cut in royalty and introduction of CPP regime
which boosted the growth. Despite all these efforts, the penetration level was
just 3.3% and cellular subscribers were a dismal 5 million at the end of FY
2004.
PTA analyzed the situation
critically and pushed the Government of Pakistan to announce the Cellular
Mobile Policy with the proposal of awarding two new cellular mobile licenses so
that healthy competition is introduced in the market. In January 2004, Cellular
Mobile Policy was announced and PTA setout to award two new cellular mobile
licenses on April 14.2004, M/s Telenor and Mis Warid were awarded cellular
mobile licenses through a fair bidding process. The instant impact of this PTA
initiative brought about a revolution in the cellular arena as tariffs
drastically lowered and a race to cover unexplored areas ensued among the
cellular operators. With the introduction of new players, reduction of
activation tax and increase in coverage of cellular services, mobile cellular
subscribers experienced exponential hikes with every passing year. An average
subscriber growth rate of more than 100% was constantly achieved for the next
three years. From a mere 5 million cellular subscribers in 2004, cellular
subscribers jumped to 100 million in 2010. The ultimate fruit of this effort by
the regulator resulted into low-cost mobile connection charges, reduced
tariffs, almost complete coverage area and high quality mobile services for the
general public throughout the country. Today, cellular teledensity has reached
61% from a mere 3.3% in 2004 while almost 92% of the land area and more than
10,000 cities/towns/villages are under the umbrella of by cellular services.
From a mere 2000 to 29,000 cell sites In just six years, cellular services have
reached to every nook and corner of the country. No other country in the near
proximity has achieved such high growth rates as Pakistan. In a period of a
decade Pakistan has gone from a country with minimal telecom infrastructure to
a success story when it comes to telecom deregulation, attraction of foreign
investment, contribution to economy and growth in subscriber base.
Pakistan Telecommunication
Authority (PTA) being the regulator of telecom industry is the prime Government
entity which has been overlooking the industry and consumer affairs for the
last thirteen years. Be it facilitation to licensees or enforcement of
decisions, protection of consumer interests or crackdown against illegal
operators, PTA has always endeavored to put the right step in at the right
time. Consumer protection regulations, deployment of SIM activation system, SIM
Information System '668', Quality of Service Surveys and raids/crack down
against illegal network operators are some of the areas where PTA has helped
changed the face of telecom industry. As telecom industry has approached a
status of stability and steadiness, PTA is helping the industry explore new
paradigms such as data services, mobile internet and mobile commerce:
The current status of telecom
industry boasts of a steady, progressing, profitable and high quality telecom
market where consumer interest is given the top priority while also keeping in
view the business interests of the companies. The regulator and the industry
are jointly exerting all efforts to keep the status of telecom industry as an integral
contributor to the country's economy.
To Commemorate 100 Million Cellular Subscribers Celebrations of Pakistan Telecommunication Authority Islamabad, Pakistan Post is issuing a Commemorative Postage Stamp of Rs. 8/ denomination on January 19, 2011.
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