Pakistan's ambitious plans to roll out 5G services within the next 10 months are facing skepticism from the telecoms industry, which says foreign exchange restrictions and economic problems pose formidable obstacles to such a rapid rollout.
The industry says foreign exchange restrictions have already forced the closure of many factories across various industries, including recently established smartphone assembly plants. In this economic environment, allocating billions of dollars for 5G equipment and expensive phones - beyond the reach of most Pakistanis - poses a significant challenge, industry insiders say.
One significant concern raised by the industry is the requirement to pay spectrum fees in dollars rather than Pakistani rupees, which adds further hurdles to 5G rollout in Pakistan.
Operators are therefore finding it challenging to make a compelling business case for 5G, even if the spectrum allocation has been secured at no cost, industry officials say.
Commenting on the issue, Jazz CEO Aamir Ibrahim noted that Jazz has conducted a successful 5G test and trial in Pakistan in 2020 and is constantly exploring new technologies while closely monitoring global 5G deployment. However, he emphasized that innovation must align with relevant use cases and take into account affordability for consumers at scale.
Ibrahim believes that at present, the true potential of 5G technology is more suitable for advanced enterprise use cases such as remote surgeries, industrial production control, autonomous logistics and other high-end systems, beyond their application in retail broadband access.
He emphasized, “With almost half of our population still offline, including 20% of Pakistanis living without any telecom coverage, the main challenge for us right now is to quickly roll out fast and robust 4G internet across the country.
A proponent of a "smartphone in every hand" and "broadband in every home," Ibrahim said Jazz is expanding mobile broadband to the farthest corners of the country with investments exceeding $10.4 billion, including about $1 billion in recent years, primarily under its "4G for All" initiative.
For most customers, the primary concern is accessible, reliable, affordable and high-speed internet, not the difference between 4G and 5G. With the average 5G-enabled phone costing more than $250, it's becoming a luxury that most of the population can't afford, he said.
Ibrahim stressed: “Our priority as a country should be to prioritize providing affordable and robust internet access to all citizens instead of deploying technologies that cater to a limited elite group.
Participating in a spectrum auction, acquiring spectrum and then facing challenges due to foreign exchange constraints in procuring the necessary equipment and facilities to roll out the network can be counterproductive. This situation became evident after the last spectrum auction at the end of 2021. Within a few months, the withholding tax on basic telecom and internet services increased from 10% to 15% and later in the year the import of phones and equipment faced restrictions that had a serious impact on telecom operators. the ability to expand connectivity and maintain reliable services
Similarly, PTCL Group President and CEO Hatem Bamatraf expressed limited enthusiasm about entering the 5G auction process when interviewed at a press conference at PTCL headquarters a few months ago.
The outgong CEO of Telenor Pakistan, Irfan Wahab Khan, also hinted in a media interview that Pakistan may not be ready for 5G services in the next few years and should instead focus on boosting 4G services nationwide.
The industry agrees that addressing the problems of the telecommunications sector and the prevailing "digital emergency" should be a priority. This requires addressing the increase in business costs that can be largely attributed to the policy of pegging telecom spectrum prices to the US dollar. Once these pressing issues are resolved, the industry suggests that Pakistan can explore next-generation technologies.
In a world rapidly evolving in technology, Pakistan is targeting the next big leap: 5G connectivity. As the nation grapples with forex restrictions, the push for 5G technology is more than just infrastructure development; it is a strategic move to move Pakistan into the digital age. In this SEO-optimized article, we explore Pakistan's 5G ambitions, the challenges it faces due to forex restrictions, and the potential benefits that await.
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Why 5G is important for Pakistan
Forex Curbs: An Obstacle to Progress
Government initiatives and partnerships
Potential economic growth
Challenges on the way to 5G
Conclusion: Pakistan's Path to a Digital Future
Why 5G is important for Pakistan
5G technology is more than just faster internet; it is a catalyst for economic growth and innovation. From powering smart cities to improving healthcare and education, Pakistan is realizing the transformative potential of 5G. With its promise of ultra-low latency and unprecedented speeds, 5G can revolutionize the industry and make Pakistan more competitive on the global stage.
Forex Curbs: An Obstacle to Progress
Pakistan's 5G ambition hits a significant hurdle in the form of forex curbs. These restrictions on foreign exchange transactions may prevent the importation of critical equipment and 5G technology. As a result, Pakistan has to find innovative solutions to solve these problems.
Government initiatives and partnerships
To overcome forex restrictions, the Pakistani government is actively seeking partnerships with international organizations and technology companies. By fostering collaboration with global players, Pakistan is seeking to gain access to the necessary resources and expertise needed to roll out 5G infrastructure.
Potential economic growth
The deployment of 5G technology can have a profound impact on Pakistan's economy. It can create jobs, attract foreign investment and stimulate business. Industries such as e-commerce, telemedicine and the Internet of Things can thrive in a 5G-based environment and contribute to GDP growth.
Challenges on the way to 5G
While the 5G vision is promising, it comes with a number of challenges. These include issues of cyber security, spectrum allocation and ensuring affordable access for all citizens. Addressing these challenges will be key to the successful rollout of 5G in Pakistan.
Conclusion: Pakistan's Path to a Digital Future
Despite the forex restrictions, Pakistan's commitment to adopting 5G technology remains strong. The nation recognizes that 5G is not just a luxury, but a necessity to remain competitive in the digital age. With government support and international partnerships, Pakistan is poised to overcome obstacles and unlock the transformative power of 5G, leading the nation to a brighter and more connected future.
Pakistan's 5G push is a story of ambition and resilience. While forex limits present challenges, the nation's commitment to progress and innovation ensures it remains on track for the global 5G revolution. As Pakistan's 5G journey unfolds, it opens the door to countless opportunities and economic growth, promising a prosperous digital future for the nation.
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