Pakistan ICT and Internet Economy Report (Part 02/09)

The Big Four of Pakistani Telecommunication

Looking at the major contributions of the service industry to the economic stability of Pakistan, it is apparent that each and every service adds a significant amount of value to the overall output. The transmission of information in order to communicate over significant distances has brought a remarkable revolution in the lives of people. Being able to communicate over long distances is not the only remarkable change that has occurred, but changes regarding how people work and earn income have also come to fruition. From telephones to radios to fiber optics, there has not been any segment that has remained untouched.

Starting from the time of independence, there were nearly 14,000 landlines that were brought into the country right after partition. Karachi, which was the capitol of the country, had 5 telephone exchanges that were active at the time. These telephone exchanges were distributed among several departments of administration including police stations, hospitals, and notable persons of government, fire brigade and ambulances. Not everyone had the privilege of installing telephone setups in their residency except those who could afford it and had the necessary personal connections. The administrative setup of the country was unstable, yet the five exchanges along with 14,000 landlines managed to push the situation into a well developing direction. Nevertheless, it took years to make the service accessible on a wider scale, which finally resulted in the formation of the Pakistan Telecommunication Corporation Limited (PTCL). PTCL was formed during the era of the 1980s when the rise of the telecommunication sector of Pakistan began. Huge numbers of capital investments were received in order to modernize this particular sector and to make communication systems much efficient and effective.

The telecommunication sector of Pakistan is home to four main players that provide support and assistant to each other and to the end users. These four players are the Pakistan Telecommunication Authority (PTA), the Frequency Allocation Board (FAB), the National Telecommunication Corporation (NTC) and the Pakistan Telecommunication Corporation Limited (PTCL).

The Pakistan Telecommunication Authority (PTA) is the regulatory authority that governs telecommunications in Pakistan. It was formed in order to manage and monitor the telecommunication system of the country. Under the rules and regulations of PTA, no communication channel is allowed to show objectionable material that may negatively affect viewers. The communication channels and sources have to comply all the policies formed by PTA to prevent any mismanagement. If any of the communication channels aired or showed material that was blasphemous and controversial, they would be answerable to the PTA and most likely have to face legal action for violation of rules.

The Frequency Allocation Board (FAB) of Pakistan manages frequencies of radio spectrum in the country. With the help of rules and regulations made by the Frequency Allocation Board, the optimum utilization of radio frequency is monitored. The wireless installations in the country exist due to this department, which makes sure that people in every corner of the country are provided with effective communication resources. It is also responsible for providing portions of radio frequency spectrum to telecommunication services and systems. TV stations and many private wireless operators work according to the standard policies and procedures of the Frequency Allocation Board.

The National Telecommunication Corporation of Pakistan (NTC) was formed as a result of the dissemination of the very first telecommunication company in Pakistan, known as the Pakistan Telecommunication Company (PTC). The main purpose of the National Telecommunication Corporation is to provide means of communication for governmental departments and several residences. NTC operates from its own infrastructure which also includes optical fiber systems and multi-service data networks. These services are used in order to connect with cellular network providers so communication systems could become more effective and have a wider reach.

Pakistan Telecommunication Corporation Limited (PTCL), being the premier communication network provider of the country, initiated its services all across Pakistan. It has certainly become a backbone for the telecom sector of the country. PTCL is a primary source of services that provide landline phones, broadband, Vfone, wireless Internet and smart TVs to consumers. A total of 2,000 telephone exchanges are currently active in the country taking care of gazillions of customer data.

PTCL is not just the primary source of Internet service for users in Pakistan, but it is also a leading corporation that supports other corporations by providing them an infrastructure for telecom services. The company has managed to build a trusted image not just to the general user perspective but to private corporations working in the telecom sector as well.
A partial ownership (26%) has been transferred to Etisalat Communications, a huge United Arab Emirates-based telecom corporation. The Pakistani government still owns the maximum share of PTCL (62%) which makes it the decision maker of the organization. Inside levels of decision-making or matters regarding public policy come from the Pakistani government itself. It has been observed that the services of PTCL were improved to a greater extent after its privatization in 2006. A number of innovative services were introduced in order to improve the quality of the networking. The company’s rebranding was done from scratch and was a preview of the changes that were about to occur in the telecom industry. The privatization of PTCL was certainly for the good of the people who wanted to live in a connected environment. All of the services offered by PTCL were enhanced and their reach across the country was increased.

Smart TV, PTCL Broadband, and landline phone facilities are prominent PTCL projects that have been subscribed to by millions of users. Even though mobile phones have closed the distance between individuals located on different continents or in different countries, the importance of the local landline telephone service that PTCL provides cannot be denied. It has its own value which no other private service can provide with the same level of accuracy and effectiveness. People in Pakistan have been using PTCL since its inception. The level of speed it provides to broadband customers is matchless and until now, no other private company has been able to pull off services in such an efficient way like PTCL does. Initially, more than 150,000 people have subscribed to the company's broadband services. The number has now crossed more than 500,000 users and this is by far the most extensive database of users any company has ever had in the history of the country. This huge number of customer take-up is a clear example of widespread services of the country’s most trusted telecom organization. Not only has PTCL managed to facilitate millions of customers through its various services but it has also been able to earn a good amount of revenue in order to run operations smoothly. Seeing the level of reach and service, many mobile operating companies have entered the Pakistani telecom sector in order to enhance their reach as well. It is certainly apparent how the Pakistan Telecommunication Corporation Limited has set the bar for being a provider of the most affordable and efficient Internet service for all citizens.

Undoubtedly, PTCL has been one of the major sources of economic, cultural and social shift in the country and its presence is most likely to remain very important in the upcoming years as well. The organization’s achievements and developments have definitely uplifted the socio-economic situation of the country.

Coming next: New Technologies and Challenges for the Market

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