It is a digitally connected world moving at a fast pace, and it has become nearly impossible to cope with it. Pakistan was initially slow when it comes to adapting digital trends and technologies For a long time, Pakistan has remained digitally dividend, but the telecom operators have played a vital role when it comes to connecting the unconnected digitally dividend society. Telenor initiated operations in Pakistan in early 2005, and since then it is helping Pakistan in the uplifting economy by ensuring developments in the telecom sector. To showcase how investment in the network has transformed the way people communicate and socialize and connectivity impacts on growth, Telenor Group has released a new connectivity report, highlighting the sectors that are driven by telecommunications which contributed to economic growth in those regions. Contribution of Telecom Sector in Economic Growth of Pakistan.
Role Telecom Sector in Economic Growth
The report, titled “The Mobile Effect: How Connectivity Enables Growth”, focuses on the impact of the telecom sector on the economies in the countries. The report is based on five Asian countries where Telenor Group operates, including Pakistan, Myanmar, Thailand, Malaysia, and Bangladesh.
The overall impact of telecommunications on the economy of a country can be measured by the number of telecom services available in the country. In the last five years, the Telecom operator has contributed more than $12bn to the economies of Bangladesh, Pakistan, Malaysia, Thailand and Myanmar, resulting to more than 1% GDP in each country.
Connecting the Unconnected- Market Context
Government of Pakistan is trying to find new and innovative ways in telecom sectors to impact the public and private sector. Just recently we have come across a digital Pakistan initiative by the government which clearly shows how the corporations are trying to fill the gaps of digitally unconnected Pakistan.
Mobile Penetration in Pakistan:
The telecom sector is growing at a fast pace in Pakistan. Mobile penetration based on unique mobile subscribers is increasing every year. According to the report, the penetration in Pakistan is lower as compared to other developed economies, but we can see an evident growth in penetration over the years.
Market Penetration Connections:
The use of advanced mobile technologies has increased in Pakistan, resulting in the growth of 5G mobile internet penetration. It can be easily seen in the graph that after the year 2016, Pakistan has witnessed a sharp spike when it comes to 4G penetration based on internet connections. Though Pakistan is lagging behind when it compared with other developed economies, it is moving forward at a fast pace.
Though average revenue per connection has remained flat over the years, Telenor has decided to invest more in Pakistan by upgrading to advanced technologies and increasing network coverage with a hope to see a significant spike in the graph next year.
Telenor’s Contribution to Telecom Sector of Pakistan:
The contribution of Telenor’s telecom services to Pakistan in the year 2017-18 is 2016 million USD which is less than the previous year calculated to be 2085 million USD.
Contribution of Telecom Sector in Economic Growth of Pakistan
Telenor’s Contribution to Direct Economies:
Telenor has contributed significantly to the telecommunication sector in Asian markets. Out of a total US$16 billion created by the telecommunications sector across the five economies in 2018, Telenor alone contributed 25%, or US$4.1 billion.
Telenor has contributed USD 695 in Pakistan, which resulted in 50% of the economic value added to the country in the Year 2018. However, in the year 2017, the figures were better, and the telecom operator had invested USD 800 million, marking 59% economic value added to Pakistan.
Contribution to Employment:
The telecom sector for years has remained a significant employer in the country. In the year 2018, the telecom sector employed 35,000 employees in Pakistan, out of which Telenor directly employed 2,000 people.
However, last year, 37,000 full-time employees were made a part telecom field.
Productivity in terms of Telecom Sector:
The telecom sector is a highly productive sector, employing high skilled worked from different fields. One measure of the productivity of the sector is the economic value added per worker produced in the sector.
In Pakistan, economic value added per employee in telecom sector marked 378 million USD, which is almost the same as the previous year.
Telenor’s Investment in Pakistan:
Telenor has remained a significant investor in Pakistan over the years. The company has invested in the 4G rollout and the growth in coverage of mobile technologies.
The average annual investment of Telenor in Pakistan remained USD 270 million in the year 2018, whereas, in the year 2017, the telecom operator had invested 305 million USD.
The detailed report covers the contribution the telecom sector and its related investment has had on the economy of five Asian countries and that how it is enabling productivity and social impact across different industries like Health, Social & Financial inclusion, and agriculture.