Case Study Telecom Pakistan

Topics: Mobile phone, Mobile network operator, Telecommunication Pages: 24 (5745 words) Published: October 9, 2010

Table of Contents:

1.Structure of Telecommunication Sector2
1.1Evolution of the Industry:2
1.2Key Institutional bodies:3
1.3Pakistan Telecommunication Company Ltd (PTCL)4
1.4National Telecommunication Corporation4
1.7Long distance, International gateway (LDI)5
2.Privatization of PTCL6
3.Growth in mobile phone7
4.Evolution of investment liberalization8
5.Evolution of Technology9
6.Access to telecommunication services:9
7.Evolution of Pricing Policy13
8.Telecom Sector and Revenue Generation15
9.Labour Demand and Supply Effect:16
10.Perception Survey:17
10.2Survey Results:17
Trade Liberalization and Labour Market:19
Trade Liberalization and Individuals:20
11.Analysis of Research24
12.Telecommunication Policies and Challenges:25


The telecommunication plays a vital role in development of a country. It provides the prime services that an economy needs for rapid growth, development and modernization. As the economy grows, demand for telecom services increases to conduct the increased number of economic transactions in the expanded economy. Improved efficiency of this sector generates economy-wide benefits as telecommunications are a vital intermediate input and is also crucial to the dissemination and diffusion of knowledge—the spread of the internet and the dynamism that it has lent to economies around the world is testimony to the importance of telecommunications services. The telecommunication sector in Pakistan has done remarkably well in the past few years primarily due to trade and investment liberalization, privatization and openness to modern technology. The share of telecom sector in GDP has increased from 1.5 percent to 1.8 percent in the year 2004-2005[1]. Besides being a major contributor to Government revenues, this sector has also been able to attract a huge foreign direct investment in the recent years. The present study on telecommunication sector has four parts: a. In depth review of secondary information.

b. Perception Survey
c. Analysis of research
d. Conclusion.

In-depth Review of Secondary Information

1.Structure of Telecommunication Sector

2 Evolution of the Industry:

At the time of independence Pakistan inherited a meager telecom base of 14,000 land lines, primarily meant to serve the administrative set up of the country. At that stage, Post Telegraph and Telephone were one department, later in 1962 both were separated to form independent Postal department and Telephone and Telegraph Department (T&T). These were the first ever reforms concerning telecom sector in Pakistan. In the year 1990, keeping in view the changing global trends, Pakistan started taking gradual sector reform measures within the existing legal and regulatory framework. The focal point of these measures was deregulation to encourage private sector’s participation. The Telegraph and Telephone (T&T) Department was converted into Pakistan Telecommunication Corporation on 15th December 1990 by delegating the powers to the Board of Directors for better functioning of the telecommunication system in the country. Thereafter, on 1st January 1996, the said system was reorganized by establishing Pakistan Telecommunication Authority (PTA), the National Telecommunication Corporation (NTC), Frequency Allocation Board (FAB) and Pakistan Telecommunication Company Limited (PTCL). Government was further committed to deregulate and liberalize telecommunications industry through privatization of state-owned monopoly i.e., Pakistan Telecommunications Company Limited (PTCL) under ITU and WTO Agreements. In the year 2003, Deregulation Policy for Telecom Sector was announced. It opened up the fixed line telecommunication sector in...
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