5G Trials Have Begun in Pakistan
Pakistan’s Universal Service Fund (USF) ensures telecom investment goes where it’s most needed
While Pakistan’s telecommunications market is ostensibly deregulated and liberalised, the government retains a fair degree of influence if not control over proceedings. For example, it continues to hold a 62% share of the incumbent fixed-network operator Pakistan Telecommunication Company (PTC), and thus a share of one of the four major mobile network operators, Ufone (a subsidiary of PTC). This goes part of the way towards explaining why the country has lagged behind most other countries in the region in terms of investing in fixed-line infrastructure: There hasn’t been the competitive pressures to drive development or expansion beyond a limited number of urban areas.
On the flipside, however, is a concerted effort to direct telecoms investment towards the most needy and under-served parts of the country through the Universal Service Fund (USF). Set up by the Ministry of Information Technology (MoIT), the USF represents a public-private partnership in terms of its governance. The beauty of the USF lies in the fact that it ensures the telecom sector prioritises universal coverage rather than adopting a free-market model, which typically leads to a situation where multiple vendors fight over small but more densely populated areas, often replicating infrastructure.
The USF’s budget for the 2020-21 financial year includes funding for a range of mobile broadband projects that will extend coverage to more than 10 million people in Pakistan. The USF has also provided approval for over 4,000km of fibre cabling to be laid to connect more than 500 unserved councils in 18 different districts.
Table of Contents
Companies Mentioned
- Instaphone
- Mobilink
- National Telecommunications Corp (NTC)
- NayaTel
- Pakistan Telecommunication Co Ltd (PTCL)
- PakNet
- TeleCard
- Telenor Pakistan
- Ufone (PTML, PTCL’s subsidiary)
- Warid Telecom
- Wateen Telecom (subsidiary of Warid Telecom)
- Wi-Tribe
- WorldCall
- Zong
