Pakistan must convert Digital Vision into action to Drive Real Change: GSMA

In an exclusive interview with Phoneworld, GSMA officials Julian Gorman and Jeanette Whyte shared their valuable insights on Pakistan’s current digital landscape. They highlighted both the potential and the significant challenges that stand in the way of true digital transformation. Despite Pakistan’s ambitious Digital Vision, GSMA officials pointed out key areas where the country’s vision falls short, particularly in terms of policy consistency and infrastructure development.

Q&A with Jeanette Whyte, Head of Public Policy APAC, GSMA

Q1: Pakistan’s taxation policies are heavily criticized by industry stakeholders and the general public. Can you suggest any changes in taxation policy that don’t dent the national income and also provide convenience to the masses?

Jeanette Whyte: “That’s a very good question because that’s obviously a big concern because we know we’ve got IMF, we need to balance the balance of payments. The minister mentioned that today. But what we do need to do is look at reducing taxation, particularly for the handsets and the services, as we mentioned in our latest report. We haven’t done any specific modeling, but we can see from other countries when taxation is reduced and more people come online, GDP grows. Therefore, we need to get more people online. To do that, the country needs to make sure that it has affordable mobile phones and internet services. Reducing taxation might take a bit of a pinch, but in the longer term, it will generate more income.”

Q2: Can you name any real-world case in which taxation was reduced and eventually their GDP grew because of mobile benefits?

Jeanette Whyte: “Let me give you an example of India, where they reduced the taxation for mobile operators. There were a number of reductions in taxes on mobile operators as well to ensure that they could invest more. Now we can see that India, which several years ago was struggling with internet connections, today has the fastest rollout of 5G in the world.”

Q3: How can GSMA support countries like Pakistan in formulating policies that could be consistently implemented and also resonate with the local infrastructure and investment?

Jeanette Whyte: “GSMA can share best practices from other markets and help guide policy formulation. However, the key challenge is consistent implementation. Good policies are one thing, but turning them into actionable plans that resonate with local infrastructure and attract investment is essential.”

Q&A with Julian Gorman, Head of Asia Pacific at GSMA

Q1: How do you assess the state of the telecom industry in Pakistan, especially in terms of mobile network development and internet penetration?

Julian Gorman: “Assessments can mean a lot of things, but I think Pakistan has a strong history in expressing its desire and ambition to grow digitally. Milestones such as issuing 3G/4G licenses in 2014 and publishing the Digital Pakistan Vision in 2018 are significant. However, the fluctuating political environment and inconsistent policies have meant that progress on the path to a digital Pakistan has been less than it could be. Compared to peers like Thailand or India, Pakistan hasn’t enjoyed the same level of progress. It’s not for lack of vision but rather due to inconsistent policies and a lack of stable, enduring plans that encourage investment. Spectrum licenses, for instance, are ten to fifteen years, demanding mobile operators to invest with a long-term outlook. Investors need stability and certainty, something that has been lacking compared to other markets with strong, committed government leadership and stability. Pakistan’s digital vision is quite broad, you know. Being a bit of a painting, it’s translating that broad painting into details. What do we do today? What’s next week? What’s the year after? That’s always a challenge. So, it’s about turning that into an action plan. I mean, if you look at Malaysia, its growth has stalled in the last couple of years. I mean, they’re more advanced in fighting than Pakistan, but their 5g vision has stalled as governments have flip-flopped. So, it’s not just Pakistan that has such a problem”

Q2: The quality of service has been declining in Pakistan, as highlighted by multiple reports. What do you think are the main causes behind it?

Julian Gorman: “In some sense, the degrading quality of service can be considered positive because it indicates that users are consuming more data. This is not unique to Pakistan. The appetite, especially among young people, to use more data means there’s more load on the network. Unfortunately, because of the high spectrum prices, operators can’t acquire spectrum to increase capacity, leading to congestion. We’ve commissioned studies, and partners like Ookla to conduct testing. The issue is not the speed but the capacity to handle increasing usage. For instance, if the testing has 10 times more speed than the use case then it doesn’t matter. ”

Q3: What best practices from other countries could be relevant for Pakistan in optimizing the spectrum?

Julian Gorman: “The big trend is moving from regulating telecom as a sector to understanding that spectrum is an ingredient of infrastructure to support the whole economy. This means shifting from maximizing revenue to creating a strong infrastructure to build the digital economy. High spectrum costs lead to low infrastructure investment. Countries like Thailand and India have seen success by focusing on building mobile infrastructure rather than maximizing short-term revenue from spectrum auctions.”

Q4: Considering the economic, social, industrial, and regulatory challenges currently facing Pakistan, do you believe the country is truly ready for the widespread adoption of 5G?

Julian Gorman: “Globally, the most advanced markets, like South Korea, have been on their 5G journey for five years, with nearly two billion 5G users expected by the end of 2024. Around 2-3 years ago, the key ingredients for the 5G successful implementation were high smartphone penetration, high mobile broadband penetration, and subscriber penetration. Now, the landscape is reshaping, led by countries like India and Thailand with high 5G penetration. In the current landscape, the ingredients of successful 5G implementation are a supportive regulatory regime, a clear digital vision, and an ecosystem where the government and mobile operators work together. Pakistan should follow a test, pilot, and explore approach rather than rushing into a big bang rollout.”

Conclusion:

Pakistan’s digital future, according to GSMA, relies on its capacity to translate its broad digital vision into a consistent, actionable policy framework. So, it requires a focused and nuanced approach that prioritizes stable policies, affordable access to mobile services, and a strong, resilient infrastructure. Without these, Pakistan’s digital dreams may remain distant.