3G, 4G Services Boost Telecom Revenues to Rs. 299 Billion; Pakistan Observer

As predicted by ITU World Telecommunications Database Statistics and Economic studies indicated that for every 1% increase in a country’s broadband Internet penetration, GDP per capita increases by roughly 10%  (USD), and a 1% in mobile penetration results in a GDP per capita increase of roughly 5% (USD).

The recent launch of 3G & 4G has no doubt brought many opportunities for common man of Pakistan and government as well; as revenues from telecom sector reached an estimated Rs. 299 billion during first two quarters of 2014-15.  Pakistan is on its way to adopt new technologies and better internet services. Due to these improvements, smartphone penetration is also increasing as many local brands are now in market that are providing as low smartphones as ranging from 6,000-10,000.

As per official figures, this has resulted in the increase of revenues of cellular mobile industry, which has reached to Rs. 37.3 billion during July-December, 2014 as compared to Rs. 22.1 billion of July-December, 2013, indicating an increase of 69%. Telecom revenues are expected to further increase in the coming years as more subscribers will add into the 3G and 4G fraternity.

With regard to telecom contribution to national exchequer, the data revealed that during the first two quarters of 2014-15, this sector contributed Rs. 73.22 billion to national fund in terms of taxes, regulatory fees, initial and annual license fees, activation tax, and other charges.

Hence, it is proved that countries adopting 3G have experienced higher levels of GDP per capita and job creation in the telecommunications sector. Moreover 3G expands a country’s opportunities in the business sector, contributing to increased competitiveness and promoting innovative new wireless enabled businesses and services.