Aamir Ibrahim, CEO of Jazz and Chairman of the Telecom Operators Association of Pakistan (TOA), has called for urgent reforms to address the telecom sector’s challenges ahead of Pakistan’s planned 5G rollout by April 2025. He emphasized that these reforms are crucial for ensuring a smooth transition to next-generation connectivity, which will drive Pakistan’s digital transformation and economic growth.
Speaking at the National Broadband Network Forum in Islamabad, Aamir highlighted the potential of 5G to transform industries like e-commerce, healthtech, and agritech. He noted that while 4G supports applications such as streaming and e-commerce, emerging technologies like immersive gaming, health wearables, and IoT require the speed and low latency of 5G to reach their full potential.
Aamir stressed the telecom sector’s pivotal role in Pakistan’s digital economy, citing platforms like JazzCash that have revolutionized fintech. However, he highlighted that significant challenges, such as the affordability of 5G-capable phones and the limited availability of 5G-enabled devices, continue to hinder growth and innovation in the telecom sector. “While over 50% of Pakistanis own smartphones, only 1% are 5G-enabled, with affordable models starting at approximately PKR 60,000. This is a significant barrier in a country where more than 50% of the population still uses 2G phones,” he said.
Aamir highlighted the 110% devaluation of the Pakistani Rupee against the US Dollar since 2021, which has led to rising operational costs for telecom operators, especially since telecom fees are paid in USD. He called for immediate reforms to address these economic challenges to make the 5G rollout feasible.
Additionally, Pakistan is one of the most spectrum-starved nations globally, with only 1.1 MHz of spectrum per million people. Aamir recommended aligning spectrum prices with local market realities by indexing them to PKR instead of USD to reduce the financial burden on telecom operators.
Aamir Ibrahim proposed several key reforms to ensure a successful 5G rollout, including raising the Average Revenue Per User (ARPU) through market adjustments and rationalizing data pricing.
He also called for a 20-year licensing policy with a five-year moratorium and interest-free payments, tax incentives for 5G equipment imports and device financing reforms to make smartphones more affordable. Aamir emphasized the need to classify telecom as critical infrastructure to access industrial power tariffs, helping to reduce financial pressure on the sector.
Additionally, Aamir urged improvements in the spectrum auction process, advocating for a more competitive design to attract substantial bids. He stressed that learning from past auctions, where limited competition hindered outcomes, is essential for success.
Aamir concluded by highlighting the potential for increased broadband penetration to boost Pakistan’s GDP by 1.4% and calling on stakeholders to act swiftly to unlock 5 G’s full potential for the country’s digital future.
Reference Link:- https://propakistani.pk/2024/12/16/jazz-ceo-urges-critical-reforms-for-a-seamless-5g-transition-in-pakistan/