Except Zong, all other Telcos are Opposing 5G Deployment

Developing nations around the world are taking steps to deploy 5G in their respective countries. However, third-world countries like Pakistan are still lagging behind. Many industry experts like Pervez Akhtar are urging the government to take steps to bring 5G to Pakistan while heads of the major telecom companies are opposing it. In this regard, the CEO of Jazz Ltd, Aamir Ibrahim recently stated that the introduction of 5G, the fifth-generation technological standard for mobile broadband networks should be postponed.

CEO Jazz Opposes the Introduction of 5G

At a business conference organized by Nutshell Group, the CEO of the largest telecom company with a market share of over 38% stated that stakeholders should aim to do a better job by assuring “4G for everyone as opposed to 5G for a few.” Moreover, he said,

Customers think 5G is faster internet. Governments think it means hundreds of millions of dollars in auctions. Vendors of equipment think 5G (will) boost their sales. Yet telecom operators think (5G) is none of the above.

Mr. Ibrahim claims that fewer than one percent of mobile handsets in Pakistan are 5G-capable. The average cost of a 5G smartphone is around $200 or Rs55,000, which significantly decreases the number of prospective buyers. He stated that the government still taxes the telecom industry as a “luxury” sector. “This mindset must shift,” he added, stressing that 98 percent of internet usage in Pakistan occurs on mobile devices.

He referred to telecommunications as a “cross-sectoral facilitator” and stated that areas such as banking, education, and agriculture are becoming more technologically oriented due to their reliance on cellular services.

“The internet is the future’s power and data is the new oil. But sadly, we’re not priced like oil or energy,” he added. Moreover, he added that telecom companies should be able to price their products in pace with inflation given that his company’s energy cost for the coming year will be “almost three times” what it was a year before.

In addition to that, reports indicate that all private-sector telecom companies, with the exception of Zong, which is controlled by China Mobile, oppose the deployment of 5G due to the numerous economic and governmental obstacles they face. Prior to the introduction of the next generation of technological standards, cellular companies have demanded that their primary issues, such as high tax rates, stagnating income per user, profit repatriation, and growing energy costs must be resolved.

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