Sony Pixel Power calrec Sony

Mobile Connectivity of Millions in Pakistan at Risk Warns GSMA

23/05/2019

Unreasonable Conditions Put on Mobile Operators Threaten Pakistan's Digital Future

London: The GSMA today raised serious concerns over the unreasonable fees set by the government and Pakistan Telecommunication Authority (PTA) on operators renewing mobile spectrum licenses in Pakistan, which it believes pose a significant risk to the mobile connectivity of millions of citizens.

On 25 May, the licenses of two of the country's largest mobile operators Jazz and Telenor are set to expire. Under the current conditions operators are being asked to pay $450m to renew their licenses (more than double the dollar price at which operators originally acquired licenses at auction in 2004), or discontinue operations, which would mean disconnecting millions of customers. A third operator, Zong is also due to renew its license this year.

The GSMA warns that the high fees proposed for renewing these licenses will slow the development of Pakistan's digital economy and seriously affect operators' ability to invest and support affordable services. The mobile industry association raised its concerns today in a letter to the PTA and Frequency Allocation Board (FAB).

It's consumers that will lose out from imposing unfair conditions that put operators' businesses in jeopardy, said Brett Tarnutzer, Head of Spectrum, GSMA. We've already seen the damaging consequences that high spectrum prices have on coverage and quality of service in other countries. It's important that Pakistan doesn't repeat these mistakes, and place gaining inflated revenues from spectrum licenses above the connectivity of its citizens.

Safeguarding mobile connectivity

Mobile technology is the primary means of communication for millions of Pakistanis, and enables the delivery of vital education, healthcare and financial services. Recent GSMA Intelligence research estimates the total economic impact of mobile to Pakistan's GDP is $17 Billion (5.4% of total GDP).

To safeguard the continuity of mobile services for citizens the GSMA calls for the government in Pakistan to extend the deadline for agreeing license terms for all MNOs on a 3-month rolling basis at no cost, until it can reach a decision with operators.

High Spectrum Prices

The GSMA also calls for the high spectrum fees to be reconsidered. High fees make it difficult for operators to provide and expand affordable services and impact investment in network infrastructure that benefits the wider economy. The government in Pakistan should not focus on short-term revenue maximisation through raising spectrum fees. The renewal price should take into account the current market and seek to enable the laudable policy vision and goals in the Digital Pakistan Policy, not further burden operators as they seek to connect the citizens of Pakistan.

Burdensome Taxes

In addition, operators already face many taxes and fees, which should be considered when setting further financial obligations on them. In 2017, the total direct tax and fee payments by the mobile sector were estimated at $950 million (29% of operator revenue). The mobile sector makes a large contribution in taxes and fees relative to its economic footprint with around 12% of its revenue going to sector-specific tax and fee payments. Moreover, the wider mobile ecosystem contributes to the fiscal income of Pakistan, with a total of $1.9 billion in direct and indirect taxes in 2018.

These high fees work against Government efforts to bridge the digital divide and build the digital economy, added Tarnutzer. Spectrum prices and taxes should be set at a sufficiently low level that allows operators to deliver affordable services and deploy mobile broadband widely. We are committed to engage in an open dialogue to help the Government achieve its policy objectives and facilitate sustainable investment in Pakistan's digital future by all mobile operators.

-ENDS-

About the GSMA

The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators with over 350 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces the industry-leading MWC events held annually in Barcelona, Los Angeles and Shanghai, as well as the Mobile 360 Series of regional conferences.

For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.

Media Contacts:

GSMA Press Office

pressoffice@gsma.com

Like what you read? Share.
LINK: https://www.gsma.com/newsroom/press-release/mobile-connectivity-of-mil...
See more stories from gsma

More from GSMA

26/03/2024

China's Leading Mobile Operators First To Commercially Launch New Fraud Reducing Password Service, After Receiving GSMA Open Gateway Certification

GSMA welcomes CITIC Telecom, Huawei and ZTE as Channel Partners 26 March 2024, Beijing: China's three leading mobile operators - China Mobile, China Telec...

26/03/2024

China's 5G market is set to add almost $260 billion to the Chinese economy in 2030 with connections set to top 1 billion this year

At the Post-MWC Sharing Event in Beijing, leaders from the GSMA contextualised t...

20/03/2024

European Mobile Operators and GSMA Unveil a Pioneering Manifesto for Europe's Digital Future

A new digital infrastructure framework that fosters investment, innovation, and ...

19/03/2024

Maturing Global Mobile Money Market Hits $1.4tn in Transaction Value

New GSMA report finds mobile money is fueling economic growth and expansion of financial services in Sub-Saharan Africa. 19 March 2024, London: Mobile money ...

12/03/2024

Women in the Digital Economy Fund: USAID, the Bill & Melinda Gates Foundation, and Partners Launch WiDEF

NEW YORK, MARCH 12, 2024 - The Women in the Digital Economy Fund (WiDEF), a five...

04/03/2024

GSMA MWC Barcelona 2024 Closes with Over 101,000 Attendees

MWC Barcelona brought together connectivity leaders from 205 countries and territories, exploring industry topics including AI, the usage gap, GSMA Open Gateway...

28/02/2024

5G Momentum Continues with 1.6 Billion Connections Worldwide, Rising to 5.5 Billion by 2030, According to GSMA Intelligence

Industry opportunities driven by developments in 5G Standalone, 5G-Advanced, ent...

27/02/2024

GSMA and Shields Unveil New Commerce Platform to Help Telecoms Industry Meet Environmental and Financial Sustainability Targets

The GSMA Equipment Marketplace cloud-based platform will help telecommunication ...

27/02/2024

European Networks Leading Race to Net Zero with North America, MENA & LATAM Accelerating, New GSMA Climate Report Reveals

The GSMA's 2024 Mobile Net Zero report spotlights regional leaders in cuttin...

27/02/2024

Asisat Oshoala Calls on Governments to Improve Digital Literacy Initiatives and Close the Usage Gap

Six-time and reigning African Women's Footballer of the Year uses MWC Barcel...

26/02/2024

GSMA Open Gateway Launch in Germany: Mobile Operators Open up New Business Models with Network API Launch

Deutsche Telekom, O2 Telef nica and Vodafone are launching SIM Swap and Number V...

26/02/2024

GSMA Open Gateway Goes From Strength-to-Strength with Worldwide Commercial Launches, More Operators and New Go-to-Market Channels

More than 40 mobile operator networks across five continents have now commercial...

26/02/2024

GSMA MWC Barcelona Brings Industries Together for Four Days of Discussion and Debate on the Future of Connectivity

MWC Barcelona 2024 welcomes the most iconic names in connectivity for nine keyno...

26/02/2024

GSMA and UK FCDO Deepen their Commitment to Digital Development Through Renewed 37.3M Funding Partnership

New phase of the strategic partnership to support GSMA Mobile for Development...

22/02/2024

South African mobile operators announce new services to combat fraud, as part of GSMA Open Gateway initiative

Telecommunications operators Cell C, MTN, and Telkom welcome launch of two unive...

06/02/2024

SPANISH MOBILE INDUSTRY TO LAUNCH ONLINE ANTI-FRAUD AND IDENTITY SERVICES THROUGH GSMA OPEN GATEWAY INITIATIVE

Orange, Telefonica, and Vodafone will open their mobile networks to developers w...

25/01/2024

GSMA unveils new keynote speakers and features for MWC Barcelona 2024

Speakers include leaders from Accenture, Dell Technologies, Microsoft and the United Nations; as well as Nobel Prize laureate, Sir Konstantin Sergeevich Novosel...

15/12/2023

GSMA HAILS GROUNDBREAKING SPECTRUM DECISIONS AT WRC-23

Spectrum decisions at the ITU's World Radiocommunication Conference 2023 clear the path for a bright digital future for billions worldwide 15th December 2...

11/12/2023

THE GSMA LAUNCHES ITS NEWEST INNOVATION FUND TO ADDRESS HUMANITARIAN CHALLENGES

Applications for the GSMA's Humanitarian Innovation Fund, which has distributed over £5 million since 2017, are now open to start-ups, SMEs and social enter...

08/12/2023

INDONESIA MUST ACCELERATE DELIVERY OF DIGITAL STRATEGY TO ACHIEVE GOVERNMENT'S TOP 10 GLOBAL ECONOMY BY 2030 AMBITIONS, SAYS GSMA REPORT

The new report from the GSMA, published at its Indonesia Digital Nations Summit ...

05/12/2023

GSMA M360 MENA COMMENCES IN RIYADH AS NEW REPORT CONFIRMS 5G IS DRIVING GDP GROWTH IN THE REGION

The GSMA celebrates the start of proceedings with the publication of its annual ...

28/11/2023

BRAZILIAN MOBILE INDUSTRY LAUNCHES THREE ANTI-FRAUD NETWORK SERVICES AND BECOMES PIONEER FOR GSMA OPEN GATEWAY

With this initiative, Claro, TIM, and Vivo will open their networks to developer...

09/11/2023

GSMA WARNS OF $14BN (IDR 216TN) PRODUCTIVITY LOSS TO INDONESIAN ECONOMY UNLESS FUTURE MOBILE SPECTRUM PRICES ARE SUSTAINABLE

New GSMA Intelligence research reveals mobile spectrum costs in Indonesia have r...

11/10/2023

SMARTPHONE OWNERS ARE NOW THE GLOBAL MAJORITY, NEW GSMA REPORT REVEALS

The GSMA's sixth annual State of Mobile Internet Connectivity Report includes several first-time pieces of global and regional analysis, including the numbe...

09/10/2023

HIS EXCELLENCY PRESIDENT PAUL KAGAME TO OPEN MWC KIGALI 2023

Secure your spot and register today to attend MWC Kigali, 17-19 October 2023 9 October 2023, London: The GSMA is delighted to announce that His Excellency Pau...

29/09/2023

A Lively MWC Las Vegas in Partnership With CTIA Lit Up Debate Across the Mobile Ecosystem, Vertical Industries and Start-ups

The 2023 edition of GSMA MWC Las Vegas saw a rise in attendees from vertical ind...

18/09/2023

MWC BARCELONA 2023 EXCEEDS PRE-EVENT EXPECTATIONS TO GENERATE 461mn FOR BARCELONA'S ECONOMY

World's largest and most influential connectivity event also exceeded pre-ev...

16/09/2023

IMPROVEMENTS IN MOBILE CONNECTIVITY CORRELATE TO GREATER IMPACT TOWARDS SUSTAINABLE DEVELOPMENT GOALS, ACCORDING TO GSMA REPORT

The GSMA's eighth SDG impact report, published at the halfway point to the 2...

07/09/2023

GSMA M360 APAC RETURNS WITH DEBUT EDITION IN SEOUL SOUTH KOREA

The annual conference opens with the launch of the GSMA's Digital Societies in Asia Pacific Report 7 September 2023, Seoul: The GSMA M360 APAC event return...

07/09/2023

GSMA M360 APAC

M360 GSMA 2023 9 7 , : GSMA M360 APAC . KT . ...

27/07/2023

GSMA MWC LAS VEGAS IN PARTNERSHIP WITH CTIA: THE MUST-ATTEND EVENT FOR MOBILE AND TECHNOLOGY INDUSTRIES

Registration is open for MWC Las Vegas press passes 27 July 2023, London: The G...

25/07/2023

ASIA PACIFIC TO SEE TENFOLD RISE IN 5G MOBILE CONNECTIONS BY 2030 AS DIGITAL TRANSFORMATION GATHERS PACE, GSMA REPORT REVEALS

However, despite 96% mobile broadband coverage across the region, barriers in ce...

24/07/2023

THE MOBILE ECONOMY ASIA PACIFIC REPORT

Asia Pacific to see tenfold rise in 5G mobile connections by 2030 as digital transformation gathers pace, GSMA report reveals However, despite 96% mobile broad...

12/07/2023

GSMA AND EUROPEAN SPACE AGENCY LAUNCH NEW COMMUNICATIONS INNOVATION PARTNERSHIP

New Collaboration Will Look to Accelerate Advancements in Satellite and Terrestrial Communications Network Integration 12 July 2023, OXFORDSHIRE: The GSMA and ...

30/06/2023

MWC SHANGHAI 2023 WRAPS UP 10TH ANNIVERSARY EVENT AFTER THREE DAYS OF COLLABORATION, INSIGHTS AND INNOVATION

MWC Shanghai 2023 welcomed nearly 37,000 delegates from 115 countries and territ...

28/06/2023

GSMA MWC SHANGHAI OPENS ITS DOORS FOR 10th ANNIVERSARY EDITION

MWC Shanghai convenes global leaders from the mobile ecosystem at the SNIEC to celebrate the first fully in-person iteration of the event since 2019 28 June 20...

27/06/2023

MOBILE INDUSTRY EYES FIVE BILLION DORMANT' PHONES SITTING IN DESK DRAWERS FOR REUSE OR RECYCLING

12 leading global operators and the GSMA agree pace-setting ambitions in the ind...

26/06/2023

CHINA'S THREE LARGEST MOBILE OPERATORS JOIN GSMA OPEN GATEWAY INITIATIVE

Global initiative to help mobile industry, developers and cloud providers collaborate on development of universal network APIs now supported across all continen...

25/06/2023

GSMA WELCOMES LEADING CHINESE OPERATORS TO GLOBAL OPEN GATEWAY INITIATIVE AHEAD OF MWC SHANGHAI

25 June 2023, Shanghai: The GSMA today hosted a press conference ahead of MWC Sh...

31/05/2023

100 MILLION WOMEN PER YEAR WILL NEED TO ADOPT MOBILE INTERNET TO CLOSE THE GENDER GAP BY 2030, GSMA REPORT REVEALS

The sixth annual Mobile Gender Gap Report evaluates mobile ownership and mobile ...

19/05/2023

Telecom sector joins forces in call for new policies to drive EU connectivity leadership

Brussels, London, 19 May 2023 - The GSMA and ETNO, industry associations represe...