Stressing the need for reforms in the telecom sector before Pakistan’s scheduled 5G rollout by April 2025, Aamir Ibrahim, CEO of Jazz and concurrently Chairman of the Telecom Operators Association of Pakistan (TOA), made a case for urgent action to remedy the challenges in the sector. According to him, without these reforms, Pakistan would not be well-positioned to transition smoothly into next-generation connectivity, driving the country’s digital transformation and economic growth.
Aamir Ibrahim attended the National Broadband Network Forum in Islamabad to highlight the potential of 5G in transforming industries such as e-commerce, health tech, and agritech. He specifically noted that emerging technologies immersive gaming, health wearables, and the Internet of Things require the speed and low latency of 5G, notwithstanding 4G’s capabilities in streaming and some e-commerce.
Also read: Pakistan Announces National Digital Commission to Boost Digital Transformation
He recognized how critical the telecom sector was to the digital economy of Pakistan by sighting platforms like JazzCash, which revolutionized fintech. However, hurdles still existed, such as affordability in the case of the devices necessary for 5G deployment and the limited number of devices with 5G capabilities in the country. Aamir stated that even though more than 50% of Pakistanis own smartphones, only 1% of these are compatible with 5G; cheap models start from PKR 60,000.
According to Aamir, the devaluation of the Pakistani Rupee by 110% against the US Dollar since 2021 has increased operational costs for telecom operators since almost all telecom fees are paid in USD. In urgent reforms, he called for adopting measures responsive to these economic circumstances for the success of 5G.
Pakistan is one of the most spectrum-starved countries in the world. It has 1.1 MHz of spectrum for every million people. He said the spectrum prices should be indexed to PKR instead of USD, which will bring them closer to local market realities and lighten the burden for telecom operators regarding their finances.
He proposed several key reforms, including raising the Average Revenue Per User (ARPU) through market adjustments and rationalizing data pricing. He also called for a 20-year licensing policy along with a five-year moratorium, interest-free payments, tax incentives, and reforms in device financing, thereby making smartphones more affordable. In this regard, Aamir urged for the classification of telecom as critical infrastructure to get industrial power tariffs.
Aamir also called for reforms in the spectrum auction process towards a more competitive design, which would help in attracting large bids. He ended with a hope that increased broadband penetration would bring about a 1.4% raise in the GDP of Pakistan and urged all stakeholders to work quicker so that 5G could be unleashed for a truly digital future.