Slow broadband internet penetration in Pakistan

[Naveed Yaseen]

ISLAMABAD: The broadband policy approved by the government in 2004 envisaged wider penetration of “always on” internet connectivity in the country with a minimum download speed of 128 kbps.

A study by the Ministry of IT stated, “broadband is an accelerator of economic development because it provides significant direct and indirect benefits to the economy, which ranges from increased productivity, better wages, more jobs, bundling of services to provide for time and efficiency gains, increase in computer and network-related equipment demand, e-business take-off and faster ramp of ICT related sophisticated services for citizens across the country.”

It was thought that with significant increase in teledensity, mobile coverage and infrastructure development and sharing, there would be speedier penetration of broadband. Unfortunately these expectations have not been met. There are about 500 million broadband subscribers in the world growing annually at the rate of 17 percent. In Pakistan, there are about 485,000 subscribers, which, in term of density, is only 0.26 percent. The vast infrastructure inherited by the PTCL has resulted in it gaining the largest number of subscribers.

The Sustainable Development Policy Institute’s (SDPI) Study Group on Information Technology and Telecommunication in its 56th meeting discussed the problems that hinder broadband growth in Pakistan. Relevant stakeholders participated in the meeting. Wahaj ul Siraj of NayaTel and Zamir Bhatti of Wi-tribe reviewed the existing policy and infrastructure sharing issues. The meeting was chaired by Dr. Ijaz Shafi Gilani, Chairman Gallup Pakistan.

Since a major portion of the infrastructure is owned by the PTCL and is reluctant to share it with other service providers, therefore, the latter have to built their own infrastructure, which is an immense waste of national resources. Neither the Ministry of IT and Telecom (MoIT) has provided any policy guidelines nor the Pakistan Telecom Authority (PTA) has been able to break PTCL’s monopoly, which is harming other operators.

Although the PTA has constituted broadband stakeholders group to facilitate solution to the problems that hinder rapid expansion of broadband subscribers’ base but unless ministry of IT play an effective role along with the PTA is made stronger and fully autonomous, broadband penetration in Pakistan is like to be slow. Despite the good move by the government to mandate Universal Service Fund (USF) to built infrastructures in unserved areas of Pakistan with huge allocation of funds’ and the USF’s endeavor to play its role, the security situation in these areas of Balochistan is adversely impacting its otherwise useful work. Despite these difficulties, USF plans to achieve 1 percent broadband penetration by 2010. staff report

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