ISLAMABAD, 4 October 2004 — Telecom sector boom is bringing in larger profits and sounder peace to Asia, as traditional foes are ending their old feuds to share in the telecom and IT era’s bounties.
This was amply exhibited at the just-concluded conference of Asian telecom bosses and regulators at Islamabad. Afghanistan, Bangladesh, Bhutan, India, Iran, Maldives, Nepal, Pakistan and Sri Lanka’s telecom regulators and telecom and IT industry attended the Sixth Conference of South Asian Telecommunication Regulators Council (SATRC). Chairmen and directors general regulatory authorities of the region were present in the conference. The conference was jointly organized by Asia Pacific Telecommunity (APT) and Pakistan Telecommunication Authority (PTA).
SATRC and the IT industry representatives pledged to make all out efforts to “eliminate anti-competitive practices, cross subsidization of services, grey markets used by illegal operators, a proper management of spectrum, roaming in cellular services, better licensing procedures, and creating an investor-friendly atmosphere” for telecom and IT investors. Besides Europe and North America, a considerable amount of new investment is flowing into the region from Gulf, Middle East, Saudi Arabia and Egypt.
What the conference pledged, the global telecom and IT industry listened carefully because this region, extending from Iran to Bangladesh, with more than 1.5 billion residents is not only the fastest growing market for telecom equipment, but also needs a large variety of services. Add to that the fact that Asian millions, now holding newly bought shiny cellular phones in their hands, are perhaps the world’s longest talkers. Here, too, is a huge market, gaining rising purchasing by the day, that by itself is an engine of growth, because the Asia Pacific region is globally recognized to lead the world in economic growth during the present millennium.
Already IT and telecom industry big wigs ranging from Ericsson to Nokia, Siemens to Nortel, and Alcatel to LG have established themselves here. And, more are flocking in with bigger plans and still bigger plants. Telecom is the hottest sector for investment not only in Pakistan, but in most of Asia.
The cellular market in Pakistan, alone, has reached 5.2 million, within the last three years, overtaking the fixed line telephones by more than a million. The projection for the next two to three years is that the number will reach 15 million.
Besides rising purchasing power, and still fast growing population numbers, peace is getting rooted firmly in the area, where tensions are declining. As a result, more people are talking domestically among themselves, regionally, and globally, brightening up telecom company balance sheets, ensuring larger earnings, and dividends of peace are growing, the conference participants acknowledged.
SATRC unanimously approved a plan of action to chalk out regulatory framework to encourage investors, telecom operators and manufacturers in the respective countries for widening and deepening the sector by manufacturing modern equipment and provide internationally cost-effective services. It also asked the member countries to encourage telecom operators and manufacturers “to adopt measures for facilitating senior citizens and disabled persons, as well, as introducing special apparatus and gadgets for them.”
The conference agreed to establish a working group on international cellular roaming to devise ways and means for facilitating international roaming among cellular operators.
Interconnection, number portability and broadband connectivity for harmonization of emergency numbers and the maximum utilization of broadband access by the service users at reasonable tariff, are the areas in which training workshops will be organized.
Amarendra Narayan, APT executive director stressed closer cooperation among the telecommunity, particularly in Asia Pacific, and assured APT assistance to establish cost effective telecoms and information infrastructure based on radio telecommunications technologies. He called for “joint efforts by the region’s regulatory bodies to jump-start the growth of Information & Telecom Technologies (ICTs).
Awais Ahmad Leghari, Pakistani minister for IT & telecom, said, “Pakistan is aggressively encouraging foreign and domestic private sector to participate in the growth of the telecom sector and the idea behind the recent grant of licenses for two more mobile phone operators from Abu Dhabi and Norway — that brings the total number to six — and 12 Long Distance & International (LDI), and 70 Wireless Local Loop (WLL) operators, both foreign and domestic, is to bring some measure of pressure on the State-owned Pakistan Telecom Company Ltd. which had failed to penetrate in the market in accordance with the demand.” “The entire telecom landscape in Pakistan will change within the next two years, with the creation of new 40,000 to 50,000 jobs and an investment of $4 to $5 billion.”
PTA Chairman Shahzada Alam Malik said the spate of licenses issued recently will help “in increased use of information communication technologies (ICTs), development of telephone services, expanding information infrastructure, narrowing down of the digital divided and a drastic reduction in tariffs.” SATRC conference, he said, has helped the telecom regulators and all stakeholders to “take steps to implement the SATRC plan of action.”
Pradip Baijal, chairman, Telecom Regulatory Authority of India (TRAI), urged introduction of “a tough competition, non-discrimination, and flexibility in keeping up with the market on part of the regulators for promotion of telecom industry.” Baijal said, India borrowed the idea of Calling Party Pays (CPP) from Pakistan. India, he said, has also introduced Unified Licensing System (ULS) “to encourage small operators to cover rural and remote areas of India.”
All agreed that the explosive telecom growth, the still expanding demand, and deregulation of the sector, South Asia, and rest of this region, offers huge opportunities for FDI investors, equipment manufacturers, and telecom service providers.
