Telecom Operators Are Not Willing to Invest Unless ARPU is Increased

Recently, a meeting took place in which Mir Khan Muhammad Jamali in the chair discussed the regulators for their poor voice and data services. He also observed that internet and voice services worsened during the last five years. In addition to that, Dr. Khawar Siddique Khokhar, a Member of Compliance and Enforcement while reporting to the National Assembly Standing Committee on Information Technology and Telecommunication unfold a new fact. He said that the Telecom operators are not willing to invest in the country unless their average revenue per user (ARPU) is increased, excluding settling the taxation-related issues.

Telecom Operators Are Not Ready To Invest In Pakistan

The poor telecom services including data and voice will definitely create hurdles in the coming general elections in Pakistan. The committee members stated:

“Plunder on the public pocket is being made by cellular companies while accumulating full charges for less than five seconds, as calls drop due to poor signals across the country including Parliament Lodges”

Naz Baloch even stated that Pakistan stands to be the most sinister in the region with respect to internet services and connectivity. The committee said that the cellular operators earned in the past and are still earning that’s why they are operating in the country.

The Member PTA told the committee that operators are encountering multiple challenges related to high taxation, the constraint on LCs, load shedding, high fuel prices, high power tariff as well as lowest ARPU. It was further told that on the one hand, the telecom sector was given industry status. On the other hand, it was still being charged for commercial tariffs which result in increasing their cost. So, they have decided to not invest in the country unless their ARPU is increased.

The benchmark in operators’ licenses was also increased, and they invested, however, there is a continuous need for investment to boost their capacity and meet the growing demand. The ministry officials and Chief Executive Officer (CEO) of Universal Service Fund Muhammad Haaris Chaudhry appreciated the committee that there has been ease in opening LCs. It would no doubt help in improving things. According to them, the services are expected to improve in the coming months.

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