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Jazz CEO calls for urgent reforms to support Pakistan’s 5G transition

byCT Report
17/12/2024
in Business, Latest News, Slider News
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ISLAMABAD: Jazz CEO calls for urgent reforms to support Pakistan’s 5G transition. CEO of Jazz and Chairman of the Telecom Operators Association of Pakistan (TOA) Aamir Ibrahim on Monday called for critical reforms to address the challenges facing Pakistan’s telecom sector ahead of the country’s planned 5G rollout in April 2025.

Speaking at the National Broadband Network Forum he highlighted the potential of 5G to enable advancements in industries like e-commerce, healthtech, and agritech and to contribute significantly to Pakistan’s digital economy.

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Aamir emphasized that while 5G has the capacity to support emerging technologies such as health wearables, immersive gaming, and IoT, its successful deployment depends on addressing key barriers in the telecom sector.

He pointed to the affordability of 5G-capable devices as a major obstacle, noting that although more than half of Pakistanis own smartphones, only 1% are 5G-enabled, with entry-level devices priced at approximately PKR 60,000. Additionally, over 50% of the population still uses 2G devices, limiting broader adoption of next-generation technology.

The devaluation of the Pakistani Rupee by 110% since 2021 has further compounded these challenges, significantly increasing operational costs for telecom operators, as many sector fees are indexed to the US Dollar. Aamir also highlighted Pakistan’s status as one of the most spectrum-starved nations globally, with just 1.1 MHz of spectrum per million people. He urged the government to align spectrum pricing with local economic conditions and to index payments to the Rupee, easing financial pressure on the sector.

In addition to economic adjustments, Aamir outlined the need for long-term licensing policies to support sustainable investment. He proposed a 20-year licensing framework with a five-year moratorium and interest-free payment options, alongside reforms to make 5G equipment and smartphones more accessible. Recognizing telecom as critical infrastructure was another key recommendation, as it would allow operators to benefit from industrial power tariffs and reduce energy costs.

The CEO also called for improvements in the spectrum auction process, advocating for competitive designs to encourage higher participation and better outcomes. Drawing on lessons from previous auctions, he stressed the importance of creating conditions that support both operators and the broader goals of digital transformation.

Concluding his remarks, Aamir underscored the economic potential of enhanced broadband connectivity, noting that increased penetration could raise Pakistan’s GDP by 1.4%. He called for immediate and collaborative action from all stakeholders to ensure the success of the 5G rollout, which he described as a pivotal step toward advancing Pakistan’s digital future and unlocking opportunities for growth and innovation.

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