Sunday, January 22, 2012

Cellular Operators Reject 3G in Pakistan


Pakistani telecom operators are not in favour of 3G because of a limited subscribers’ base, high cost of investment involved and an unfavourable investment climate in the country.

Introduction of 3G is costlier for the existing operators and the dwindling average revenue per user discourages them to invest in this new technology. Industry has its reservations for high licensee fee. “For the cellular industry of Pakistan, the time is not ripe to venture into the high-cost technology,” Chief Financial Officer (CFO) of a cellular company said, “The actual active subscribers are not more than 70 million against Pakistan Telecommunication Authority’s (PTA) claim of 100 million.” Another top official of a cellular company rejected the PTA’s claim of over 56 percent mobile penetration in a population of 177 million.

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