Draft:Telecommunications in Pakistan

Telecommunications in Pakistan provides an overview of the landscape for mobile telecommunications, telephone services, and the Internet market within the country.

Regulations[edit]

The Pakistan Telecommunication Authority (PTA), the country’s first independent telecommunications regulator, was established by the Telecommunications Ordinance of 1994, along with the formation of the state-owned monopoly, Pakistan Telecommunication Company Ltd (PTCL).

At that time, the lack of competition led to exorbitant local telephone call rates, with international calls being even more costly. For instance, during the 1990s, making a call to the United States could set a caller back $5 per minute, which was beyond the financial reach of most people. Moreover, customer service was inadequate, with issues often taking an average of 10 to 15 days to resolve. Consumers had no alternative but to rely on PTCL, as there were no other providers available.

This situation prompted the government to initiate measures aimed at enhancing service quality by liberalising the telecommunications market. While this was a necessary step, it required careful management to ensure that both the opening of the market and the preservation of PTCL were maintained effectively.

In July 2003, the government launched a Deregulation Policy for the Telecommunications Sector aimed at attracting foreign investment into Pakistan's telecom market. A key feature of this deregulation was the creation of two types of basic services licenses: Local Loop (LL) for fixed-line telecommunications within the 14 regions served by PTCL, and Long-Distance and International (LDI) for inter-regional connectivity. Regulatory authorities established two sets of criteria that operators must satisfy before commencing operations: one for obtaining a license and another for ensuring service quality is maintained. In 2006, Etisalat International Pakistan, a fully owned subsidiary of Emirates Telecommunications Corporation, acquired a 26% share in PTCL and took over management control of the company.

By 2008, Pakistan had emerged as the third-fastest growing telecommunications market globally. The country's telecom infrastructure was undergoing significant improvements, bolstered by both foreign and domestic investments in fixed-line and mobile networks. Additionally, fiber-optic systems were being developed across the nation to support this network expansion. The surge in mobile telephony was largely attributed to two pivotal initiatives implemented by Prof. Atta-ur-Rahman FRS during his tenure as Federal Minister of Science and Technology. The first initiative was the introduction of the "Calling Party Pays" (CPP) system, which eliminated charges for the party receiving mobile phone calls. The second was the launch of UFone, a government-owned mobile phone operator that offered competitive call rates, fostering robust market competition. As a result of these measures, mobile phone subscriptions skyrocketed from just 0.3 million in 2001 to an impressive 160 million by 2018.

Pakistan's telecommunications infrastructure comprises a range of technologies, including microwave radio relay, coaxial and fiber-optic cables, cellular networks, and satellite communications. The country is linked to the global network through nine submarine cable systems: SEA-ME-WE-3, SEA-ME-WE-4, SEA-ME-WE-5, I-ME-WE, AAE, TW-1, SRG, PEACE, and Africa-1, which connect Pakistan to regions in Asia, the Middle East, Africa, and Europe.

Additionally, Pakistan operates three Intelsat satellite earth stations—one located in the Atlantic Ocean and two in the Indian Ocean—as well as three active international gateway exchanges, with two situated in Karachi and one in Islamabad. Microwave radio relay systems also facilitate communication with neighbouring countries.

Regulations[edit]

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