Pakistan Telecom Regulator Expects Huge Investments
ISLAMABAD (Dow Jones)--Pakistan's state telecommunications' regulator is projecting investment of $5 billion to $8 billion in the country's cellular and fixed-line phone network over the next five years, fueled by the industry's recent deregulation.
The expansion is likely to create 370,000 new jobs, the Pakistan Telecommunication Authority said in its annual report, adding the telecom sector's share of gross domestic product is likely to increase to 3% from 1.7% in the fiscal year ended Jun. 30. It didn't say how much it expects phone networks to expand in the next five years.
Pakistan's telecom deregulation last year has attracted many private players to the sector, ending PTCL's monopoly. Norway's Telenor ASA (TELN) and some local groups are likely to start their operations within the next 8-12 months.
The government also announced plans recently to sell a strategic 26% stake, along with management control, in Pakistan Telecommunication Co. Ltd. (PTC.KA) as an integrated company to maximize its value and generate international interest.
Since deregulation, cellular phone subscriptions have been growing robustly. There were 6.5 million subscribers in September this year, from 2.4 million at the end of 2003. Pakistan's teledensity reached 2.9% in the last fiscal year from 2.2% in 2000.
The authority said another 118 licenses were issued for card payphones services in the last fiscal year, six for audiotelephone services, and five for non-voice network communication services.
"I am conscious that despite we have achieved key milestones this year, there is much more to be done. Any issues which are likely to emerge after liberalization of the telecom services will be appropriately handled," said Shehzada Alam, chairman of the authority, in the report.
Foreign direct investment of $207.1 million came into the sector in the last fiscal year, from $6.1 million in the previous year, through the sale of two cellular licenses. Separately, the authority generated PKR30 billion through initial license fees for mobile services, long distance international services, local loops and wireless local loops.
In all, the authority has awarded 33 companies 84 local loop and 12 long distance licenses, while it issued 108 licenses to 20 companies for wireless telephone services.
"Keeping in view the importance of WLL technology in developing economies and the growth of WLL subscribers all across the world, we also decided to promote this technology and thus offered WLL licenses", said Alam.
-By Ahmed Anwer, Dow Jones Newswires; 9221-5872854;saeed.azhar@dowjones.com
-Edited by David Bottomley
(END) Dow Jones Newswires "
Posted to the site on 2nd December 2004
