KARACHI: I’ve been promoting urgent policy changes for almost two years in order to close the digital gap and empower the telecom sector to bring connectivity on par with industrialised nations, which may also aid Pakistan’s dismal rankings in the international ICT indices. Even while it is widely acknowledged that the current situation necessitates a digital emergency, no concrete steps have yet been done to address it.
Constructing the digital motorways, the telecom industry acts as a cross-sector enabler and enables other industries to produce value. There is widespread agreement that digital infrastructure ranks equally with all other important national assets. Unfortunately, in our nation, the industry is still seen as a way for the government to fill short-term revenue gaps. As a result, broader and longer-term policy initiatives aimed at expanding universal broadband coverage and giving everyone access to services that improve quality of life are discouraged.
Although it publicly supports the agenda for digital acceleration, the government’s own policies diverge from the goals. For instance, there is a Rs11,000 levy on the cheapest smartphone, which costs around $100, despite the fact that affordability of cellphones is a major obstacle to internet usage. In addition, telecom consumers pay one of the highest tax rates in the world, at 34.5%, which is outrageous.
Less spectrum means larger, perhaps avoidable investment for operators to build more towers and radio infrastructure to increase network capacity. Users will experience slower speeds and less network coverage. Second, the cost at which the spectrum is given depletes the operator’s funds, leaving little left over for investments in improving coverage, network quality, and the variety of services.
The nation hopes to top the list of places for business travellers to conduct business (EoDB). Nothing serves as a better motivator for new investors than seeing established ones flourish. However, the treatment of telecom corporations, who have contributed almost $25 billion in investment, tells a different tale.
Today’s strongest economies are those with a thriving digital economy built on telecommunications. A robust startup ecosystem, exports of IT and IT-enabled services, and other digital benefits all rely on the sector’s widespread internet connectivity. Even though we have talked a lot about “Digital Pakistan,” without the proper policy changes, we risk falling into the digital stone age.
To ensure that the future is still bright, we must take immediate, significant policy action.
