3G Telecom Technology – Pakistan Can Earn Billions of USD by Just Selling Air
Pakistan passed the 100 million subscriber milestone in Oct 2010, with five operators fighting for the market share day in & day out, but still waiting for the introduction of 3G WCDMA technology (High Internet Speed Mobile Access with International Roaming), to take the telecoms market to the much needed next level.
The 3G Licenses auctioned last year in our neighboring country fetched multi billion dollars, in license fee in addition to a similar amount of foreign direct investments, creating a spree of jobs for not only the highly educated, but also for the less educated skilled hands, working on things like tower construction.
The question remains why we are shying away from this golden opportunity, to give the much needed life saving shot to our economy?
May be the reason lies in the situation, where the current operators are shying away from the investments that they would have to make, when the licenses are made available and are just keeping a few individuals at the right places “happy”, so that it is deferred, as long as they wish.
With the 3G services available in most of the countries of South Asia and even Africa, why we are being deprived of the technological and economical benefits and playing the catch up game?
The 3G License or Spectrum auction, which is just like selling “air” is the easiest way to slightly mitigate the ever increasing unemployment rate in the country. Our peoples representatives in the both the houses should take this up seriously, to expedite the ever delayed process.
By A. Muiz Khan
An update by the writer
Although, 100 Million subscribers may seem a big figure in absolute terms yet, in the backdrop of Pakistan, this amounts to only about 60% Mobile penetration; which is far from saturation, with some developed countries having around about the 100% mark. These figures are obtained after the implementation of the standard active subscriber definition in the industry, which has forced the operators to adopt data cleaning process, so the data comes mostly from the active subscribers, hence, a fairly accurate estimate.
Now, the point of adopting 3G is not necessarily to add new subscribers. But if 60 people out of 100 have mobile connections, then to make lets say initially, 15 people out of the active 60, to switch to using the new technology. This will generate new high profit margin revenue streams from data intensive applications, like video calling & HD Video streaming etc.
Now, we as a country can benefit from this situation, by putting the technology on the table for Sale. Surely the existing operators cannot shy away from spending on the candy bar, which will ensure a greater revenue stream for them. However, their aim is to delay it as much as possible, so that they do not have to take out cash at this moment of the financial crunch.
Once we put the technology or as stated in the article “AIR” on sale, we will get instant payments from the operators on acoount of license fee and as the race to launch the first 3G network kicks off to obtain the First-Mover advantage, huge FDI (Foreign Direct Investment) will take place in modernizing and building the network infrastructure, resulting in effective billions of dollars in earnings and creating thousands of jobs in the process.
In the recent auction of the 3G licenses in our neighboring country, only the licenses fee fetched close to USD 15 Billion, which is a huge amount in itself, excluding all the FDI and other positive impacts on the economy, like reduction in unemployment rate.
By A. Muiz Khan
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It is great to read your writings sir. you r always informative and positive in ur writings.
The government of Pakistan must get ur services for the sake of Pakistani common man.
The reason of our downfall is that we dont value the capable people like Sir, Nayyar sb. The voice of sir Nayyar must b hear by government of Pakistan.
It is great to read your writings sir. you r always informative and positive in ur writings.
The government of Pakistan must get ur services for the sake of Pakistani common man.
The reason of our downfall is that we dont value the capable people like Sir, Nayyar sb. The voice of sir Nayyar must b hear by government of Pakistan.
UPDATED BY A. MUIZ KHAN
Although, 100 Million subscribers may seem a big figure in absolute terms yet, in the backdrop of Pakistan, this amounts to only about 60% Mobile penetration; which is far from saturation, with some developed countries having around about the 100% mark. These figures are obtained after the implementation of the standard active subscriber definition in the industry, which has forced the operators to adopt data cleaning process, so the data comes mostly from the active subscribers, hence, a fairly accurate estimate.
Now, the point of adopting 3G is not necessarily to add new subscribers. But if 60 people out of 100 have mobile connections, then to make lets say initially, 15 people out of the active 60, to switch to using the new technology. This will generate new high profit margin revenue streams from data intensive applications, like video calling & HD Video streaming etc.
Now, WE as a country can benefit from this situation, by putting the technology on the table for Sale. Surely the existing operators cannot shy away from spending on the candy bar, which will ensure a greater revenue stream for them. However, their aim is to delay it as much as possible, so that they do not have to take out cash at this moment OF the financial crunch.
Once we put the technology or as stated in the article “AIR” on sale, we will get instant payments from the license fee, from the operators and as the race to lunch the first 3G network kicks off to obtain the First-Mover advantage, huge FDI (Foreign Direct Investment) will take place in modernizing and building the network infrastructure, resulting in effective billions of dollars in earnings and creating thousands of jobs in the process.
In the recent auction of the 3G licenses in our neighboring country, only the licenses fee fetched closed to USD. 15 Billion, which is a huge amount in itself, excluding all the FDI and other positive impacts on the economy, like reduction in unemployment rate.
gr88
great work sir, keep it up
may be planing action like scam like india, 2G spectrum.. 39 Billion USD corruption in india
like it or not by the telco, 3G will come to Pakistan soon, its the trend by the business culture to avoid the change / improvement till you can, remember charging incoming calls and even CLI….after competition…all is free…when one GSM enters, every once comes under GSM flag, who delayed like INSTAPHONE, they just vanished, we were hoping that China Mobile will come with 3G, but the way their people handled the GSM license and issues from PTA….they are not thinking on 3G this soon…..but as soon one operator, new or existing (new have more chances) comes..every has to goto 3G..but PTA and governemenet should encourage this trend..and not to sit idle…. anyway Syed Nayyar Uddin did a great thing by highlighting this gold mine….now its upto the PTA / Govt…to make the way for it.
3G is revolution in mobile technology.
Companies like Mobillink , Telenor are far ready to launch 3 G with infrastructure deoployed aready but the fear factor is “bad economy” where not the above 2 but any other company wont like to invest under such worst eoconomic conditions coz they wont get retrun on investment.
It will also give a raise to our Imports as well.
Just earning few millions or billions once wont solve any problem.
Thinking as an eoconomist, “wait for good time”. which all telecom operator are doing.
I agree 100 percent with Saleet that we should not rush into it just because our neighbouring country did. Their dynamics are different. I think auction at this time would not fetch as many billions of dollars, as it will at a later stage. So I think the wise decision is to wait, but the question is till when. If we are not expecting a better situation in the economy in the next year or two, then let’s do it. If the hopes are good, let’s wait another year!
[…] USD from the same auction in April 2010 i.e. two years ago. Details are available at link:- https://www.snayyar.com/3g-telecom-technology-pakistan-can-earn-billions-of-usd-by-just-selling-air.h…. It will not be out of place to state that as reported today i.e., Wednesday 1 Feb. 2012 the […]
the launching of 3g tech will be revolution in pakistan telecom industry and make more employees.If we are not expecting a better situation in the economy in the next year or two, then let’s do it. If the hopes are good, let’s wait another year! – See more at: https://www.snayyar.com/3g-telecom-technology-pakistan-can-earn-billions-of-usd-by-just-selling-air.mobile app website development
Companies like Mobillink , Telenor are far ready to launch 3 G with infrastructure deoployed aready but the fear factor is “bad economy” where not the above 2 but any other company wont like to invest under such worst ecommerce conditions coz they wont get retrun on investment.