PA K I STA N I N ST I TUT E O F D EVE LO PM E N T ECO N O M I CS

INTERNET FOR ALL

AUGUST - VOLUME II - ISSUE VIII

P&R
2021
PIDE

PIDE’s GUIDE TO POLICY & RESEARCH

INTERNET O
F R ALL 1
 PIDE P&R
PIDE’s GUIDE TO POLICY & RESEARCH

VOLUME II - ISSUE VIII

Pakistan Institute of Development Economics (PIDE)

 ”
August
2021

PIDE Policy & Research is a guide to

policy making and research. Each
issue focuses on a particular theme, but
also provides a general insight into the
Pakistani economy, identifies key
areas of concern for policymakers, and
suggests policy action. The publication
offers a quick orbit of the country’s
economy and is a hands-on and precise
go-to document for the policymaker,
businessperson, academic, researcher,
or student who seeks to remain updated
and informed. This issue is themed
around PIDE’s recent research efforts Managing Editor
regarding the diagnostic of growth. We
Pervez Tahir
welcome contributions from within PIDE
as well as from any external contributors. Associate Editor

Disclaimer: Fizzah Khalid Butt

The views expressed by the contributors

do not reflect the official perspectives of
PIDE.
Founders

For contributions and feedback, please Nadeem ul Haque

reach us at [email protected]
Durr-e-Nayab

Design

Muhammad Ahsan Zeb

Fiza Zia ul Hanan

Table of Contents
Message - Chairman PTA 01

Internet for all - Nadeem ul Haque 02

Enabling the Digital Future - Irfan Wahab Khan 03

Interview with Irfan Wahab Khan 05

Startup and digitalisation outlook in post-pandemic Pakistan - Khurram Ashfaque 06

Broadband for all –Perception and Reality - Malahat Rab 09

Internet for All - Idrees Khawaja 11

Interview with Mohammad Ali Ibrahim

13

14
Can We have Internet For All? - Hafsa Hina
16
Will 5G be a Game Changer for Pakistan - Are We Ready? - Unbreen Qayyum and Saba Anwar
18
How digital we are? - Hafsa Hina
22
Collaborative Regulations for Digital Pakistan - Shahbaz Nasir
26
Internet Evolution in Pakistan - PTCL/Ufone
27
JIO’s Internet Revolution in India - Mohammad Shaaf Najib
29
DIRBS - Promoting Local Handset Manufacturing Industry - Nauman Khalid
33
The Future of Microfinance: Digital - Maryam Kamal
38
FinTech in Pakistan - Ahmad Fraz and Ahsan ul Haq
40
Why should we not rush for 5G? - Ayaz Ahmed, Henna Ahsan
44
Internet For All – Reality or Pipe Dream? - Obaid Khan
45
Internet and Economic Growth - Shahid Mahmood
47
Internet and the Right to Information - Raja Rafiullah
49
Internet of things: The new economy in making - Hassan Rasool and Nadeem A. Khan
52
Internet in Pakistan - Hania Afzal
53
The Digital Divide - Saddam Hussein 55
Internet for All: A Research Perspective - Anjeela Khurram, Farhat Mehmood 56
Data privacy in social media - Nadir Abbas 57
Internet! A Development Enabler - Sana Habib 58
Social Media and Covid-19 in Pakistan - Fatima Hasnain 59
Internet Access - PIDE REFORM AGENDA 63

Webinar Briefs: Internet for All 66

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 Editorial
Nation is going to celebrate its 75th year of independence
and has a lot to ponder on, the achievements, the plans, the
regrets and the way forwards. The last seven decades have
shown all kind of situations to the country and amidst the
chaos, it is striving but standing tall, proving the resilience
of this country which gives everyone a hope for a better
future. Hoping to have next seven decades and all the times
to come a prosperous Pakistan. Happy Independence Day
and Month!!!

In the last 75 years the country has taken the road to

development and making every effort to reach the
destination, the example is current reforms in every field.
The country has learnt to pave its way and will keep
moving forward. The needs of the time to achieve the level
of development desired are always changing and so the
perception of the people. Over the time the world took a
digital turn and to match the pace of the world we needed
to adopt technology and with the pandemic Covid-19,
another entity has taken the form of necessity and that‘s the
INTERNET. Internet has provided the support to the world
when everything was shut and everyone was in isolation, it
became the link to learn and to connect. PIDE understands
this and it is advocating that Internet is now a human right.
The issue of this month is dedicated to the Internet, how it
is required by everyone, we advocate and desire Internet for
All!!

In the issue the readers will get the flavor of the ideas of
the people regarding the need, availability and readiness
of the internet in Pakistan. P&R has collaborated with PTA,
Telenor, Ufone, PTCL and Mobilink Microfinance Bank
Limited to take their views and their efforts to make internet,
digital platforms and products available for the people of
Pakistan. We‘re extremely thankful for their collaborations
and the enthusiasm that they showed to work with us to
tell their side of the story, particularly Telenor. We‘re excited
to present this issue to you, and are hopeful that it will be
an amazing reading experience for our readers. Quaid e
Azam Muhammad Ali Jinnah said “we want to make this
great State of Pakistan happy and prosperous we should
wholly and solely concentrate on the well-being of the
people, and especially of the masses and the poor. If you
will work in co-operation, forgetting the past, burying the
hatchet, you are bound to succeed.” We believe in the
equity and stand firm with the idea of availability of all the
needed resources to everyone beyond caste, creed and
social status. Tell us how best to beat the forces taking
us to yet another inequity, the so-called DIGITAL DIVIDE.

Happy Reading on internet in the merged districts of KP,

GB, AJK, Balochistan and places like Rajanpur in South
Punjab. For feedback, write us on [email protected].

01 www.pide.org.pk
Message
Chairman PTA
We are living in a time of extraordinary technological
advancements which has brought us at the cross-roads
of innovation in computing and communications.
New technologies such as 5G, the Internet of Things
(IoTs), and Artificial Intelligence (AI) are reshaping the
social and economic fabric of our society and changing
our lives. In this wave of technological progress, the
Pakistan Telecommunication Authority (PTA) is at
the forefront of the digital revolution by supporting
innovation through a transparent, collaborative
and adaptive regulatory approach. Our regulatory
approach is to support and stimulate innovation that
benefits the citizens and the economy. We aim to
improve quality and standards; promote competition
and ensure that the market works effectively for
consumers and enhance the overall investment
environment. Protecting consumers, both people and
businesses, is at the core of PTA’s mandate and vision.
The accessibility of mobile services and maintaining
standards in service delivery is a priority for PTA so
that consumers receive the best possible broadband
and phone services at affordable rates.

In year 2020, over 19 Million mobile broadband users

were added in our network, which is the highest in
Pakistan’s history in a year, clearly reflecting that our
efforts towards Digital Pakistan are bearing fruit.
Today, Pakistan has achieved the milestone of over
102 million broadband subscribers. This astounding
achievement is a testimony to the Government’s
efforts in ensuring the provision of high quality ICT
services to the people of Pakistan. This journey of
digital transformation will continue for the realization
of the “Digital Pakistan Vision” of the Government of
Pakistan so as to unleash the immense potential of
Pakistan driven by innovative technologies. Major General (R) Amir Azeem Bajwa
To provide high speed internet access for all the people I acknowledge the trust and confidence that the
of Pakistan, PTA is working on a range of regulatory leadership and the people of Pakistan have reposed on
and industry initiatives: ensuring the availability the telecom regulator and the sector. PTA will remain
of spectrum and extended rollout obligations to steadfast in its resolve to implement the government
cover unserved population; facilitating fiberization vision and policies in best possible way. The telecom
and resolving Right of Way; supporting adoption consumers, sector and ancillary industries will be our
of emerging technologies; maintaining Quality of priority while we make available the latest and most
Service by enhancing benchmarks; engaging with modern digital services and infrastructure to wider
stakeholders for safe Internet; enabling environment population of Pakistan. I also acknowledge the efforts
for local manufacturing of mobile devices through and contribution of PIDE to issue a supplement on
world’s first open-source Device Identification, this very important sector and its related issues.
Registration and Blocking System and launching a
comprehensive Mobile Manufacturing Policy and
Regulations. These measure will support future digital
services and benefit the wider economy.

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 INTERNET
FOR ALL

NADEEM UL HAQUE
VC, PIDE

The internet has become part of everyone’s life all depends on the availability of fast internet to all. Every
over the world, including Pakistan. While most of possibility in the future is going to depend on the net.
Pakistan has weak connectivity, our priority in our Pakistan has not taken advantage of the opportunities
public investment remains building roads and brick of globalization and the computer age. We should
and mortar. All this while people have limited access now make ourselves ready for the connected age.
to devices to use the internet well. And we must do it on an emergency footing.

During the pandemic, PIDE as well as other academic How can we get internet for all? Do we have the
institutions have experienced extreme difficulty in resources? Should the government fund it?
teaching on the net due to the poor connectivity in
most areas of Pakistan. PIDE has learnt that we can easily and quickly get
internet for all if the government gets certain aspects
PIDE engaged in a four-month exercise on this of the regulation right. And no, there is no need for the
subject, talking to CEOs of telcos, users, Silicon Valley government to spend large amounts of money. What
Pakistani renowned experts as well as ecommerce then is needed?
developers to understand how Pakistan can get to
internet connectivity for all. To start with, the government should allocate more
spectrums for internet usage. The spectrum exists
PIDE has now concluded that access to the internet and must be used, or it disappears. The government
should be treated as a right. Our economic future likes to allocate a small part, keeping back large parts

03 www.pide.org.pk
– for what? The last mile will be 5G and we should start preparing
for it. The regulatory and permission framework
Spectrum bandwidths are auctioned to maximize should be fast tracked – now. Companies should start
revenue. Since the price is unknown and there is a investing in it – now.
suspicion of underselling, officials fix a reserve price
that is too high. Often auctions are cancelled. If Internet is provided through a network of fiber optic
investors spend a lot of money on buying spectrum, cable with towers at nodes to send out the signal.
they have little to spend on development. This slows The towers and pipeline could be owned by different
down internet development and also makes the companies and the providers can rent their use. The
service very expensive. government regulatory framework must allow for it.
Our focus must shift to digital content provision and
Revenues can also be collected over time rather than away from mere telephony.
all at once in an auction through giving the spectrum
for a share of revenues over time. That would allow for Finally, there is no use providing connectivity
faster internet development. Our students, commerce when devices are taxed heavily. For education,
and people will be happier. telemedicine, content development and many other
creative entrepreneurial activities, a good computer
Fiber optic network is the major carrier of digital and a tablet and a mobile phone is a necessity. Let
content. Barriers to the laying down of this fiber us not stop our people’a development merely for the
optic cable should be removed. Once again, revenue collection of revenue or for facilitating the assembly of
raising through taxing the laying down of cable must yesterday’s technology.
be stopped. All networks of cabling or piping such as
for electricity and other infrastructure should include PIDE suggests the internet is now a human right and
facilities for adding fiber optic. must be a top priority of the government.

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ENABLING THE DIGITAL FUTURE
IRFAN WAHAB KHAN
Today a vast majority of Pakistanis accesses the Technology-enabled innovation is the major spur to
internet through their mobile phones. This device has productive growth. Rapid advances in technology are
become their gateway to the entire world, connecting enabling new business opportunities and disrupting
families, businesses, students and so many more current business models. For Pakistan to continue on
to one another. I believe true digitalisation is where this digital growth path, it is crucial to invest in people
everyone benefits from technology and solutions, and prepare them for the skillset our future demands.
and not just a select few. We have been focusing our According to an estimate, 70 per cent of new value
digitalisation efforts on the same principle and made created in the economy over the next decade will rely
a lot of progress in the past few years in terms of on digital platforms and business models e.g. digital
policies, processes and business practices payments and e-commerce alone are forecast to add
$45 billion over the next five years to the country’s
This year and the last came with its own set of GDP. This is bound to elevate the level of exports and
challenges for economies and businesses around the create new jobs for the youth of the country. However,
world. The onset of this pandemic severely affected the youth needs to be prepared to embrace the new
national and global economies and enterprises on a and upcoming opportunities by being equipped with
diverse scale. Pakistan being an emerging economy skillset of the future. With digital means of education
and having a large blue-collar workforce that depends taking off in popularity, this trend should continue for
on day-to-day wages, may come to face an economic our youth to keep exploring new avenues to expand
contraction. However, this year has also been a catalyst and enrich their areas of expertise.
for digital adoption in the country along with many
developments in the way of work in enterprises that COVID allowed us to fast pace the digital adoption
has given a jumpstart in the right direction. in a few months for plans that were made for the
next five years. To keep driving such growth in the
Pakistan is rightly known as the land of opportunity country, new technological solutions will have to be
as it has tremendous and unmatched potential. brought in to support and develop smart solutions
We witnessed a surge in data usage and digital such as integration of Internet of Things (IoT) to real-
payments during the pandemic and there has time monitoring, computing, and establishment of
been an increase in fin-techs, startups and banking smart factories. The digital world continues to evolve
institutions marching towards digitalisation; hence, and grow. The digital future is built on collaborative
signalling a boost for economy and society. The recent efforts to nurture strong and strategic partnerships
months following the coronavirus outbreak came as to co-create and develop innovative solutions. When
a reminder to transform businesses, innovate new the organisations and institutions offer solutions
operating models, bridge the digital divide, and build collectively, they benefit the masses exponentially by
a digitally and financially inclusive society. bridging the digital divide and offering solutions to
current problems.
Telecom is integral for Pakistan’s progression towards
a digital society path. The industry is playing its role of A fundamental pillar of our responsible business
bridging connectivity gaps, promoting inclusion and approach is the inclusion of the digitally excluded
transforming several sectors. A true representation and our commitment to ensuring digital access for
of a digital society is digital citizenship, which the all. The pandemic has heightened the importance
GSMA defines as, interaction between government, of reducing inequalities when it comes to mobile
businesses and citizens specifically in the provision services and connectivity. The ability of people to
and use of public services over digital channels. access essential services, stay safe online, and acquire
This is where mobile technology has been and will the skills necessary to succeed in the new normal are
continue to be a vital contributor. Transforming more imperative than ever before. We have a wide
the way individuals, businesses and governments range of initiatives aimed at reducing the connectivity
interact. Another aspect is sectoral digitisation. In gap, building digital skills, and promoting diversity
Pakistan, mobile connectivity is redefining the digital and inclusion. We have invested our efforts in creating
transformation of industries and facilitating the more impact, enterprising innovation led possibilities
development of new solutions. We have witnessed and empowering Pakistanis. I believe our key services
revolutionary solutions in agriculture and banking – mobile connectivity and internet – are the great
through fintech solutions such as Easypaisa. Mobile equalisers of our day. Widespread and affordable
connectivity has also been leveraged to give children access to digital services and skills is a game-changer
their right to identity through Digital Birth Registration. for millions.
The potential is insurmountable.

05 www.pide.org.pk
Interview

IRFAN WAHAB
CEO TELENOR PAKISTAN

Q.1 How has the internet become such a necessity in today‘s world and what is its
significance in the micro and macro environment?

In today’s world, we are experiencing immense growth timely updates and information. Law enforcement
and expansion of digital ecosystem; yet it’ll never be agencies, government bodies and companies are
this slow again! The digital revolution is impacting now integrating internet of things (IoT) into their daily
economies, societies, and governance. Today, routines, for example fleet management purposes,
technology is presenting the biggest opportunity to enabling citizen data centers and many more.
contribute towards how we live, interact and work. Internet is also being integrated into many other
The internet has brought the world closer, with governance structures in Pakistan such as enabling
information about everything just a few taps away. digital payments for fee collection, traffic challans
This ease of access to information and connectivity and digitalising the citizen portal for quick processes.
was never available before, and the opportunities that
emerge from such resources are immense. If we do a quick recap of life as it was a decade and half
ago, we were still using dial up internet, digital cameras
Digitalisation is touching all walks of life. On a larger had recently started taking over film cameras and
scale, it is enabling e-governance structures that help the primary source of shopping used to be through
in building trust between governments and citizens physical retail outlets. Today, the internet is providing
by ensuring transparency. It also, creates efficiency massive opportunities to budding entrepreneurs
in processes and makes them cost effective. Social to reach out to their target audience faster without
media has become a bridge between people and incurring high costs. It is also providing opportunities
the public sector, for example appeals for information to freelancers to reach out to the global market
and reporting of incidents to the police or, in and earn a living from home. Education and health
context of the pandemic, NCOC being able to share sectors have also transitioned to online mediums

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and the pandemic only accelerated digital adoption Over the past years, technology has been integrated
of these by masses. Agriculture being the backbone into the lifestyles of people and today, we cannot
of Pakistan’s economy has huge potential through imagine our lives without connecting with our friends
digital interventions. Telenor Pakistan’s Khushaal and family based abroad or ordering food online or
Zamindaar is such an initiative that enables the rural booking a ride through ride hailing apps. With the
community with key information regarding their fast pace of technological solutions being introduced,
crops and livestock along with providing insurance smart cities and smart homes are also becoming
options and medical consultations. a reality with IoT. Our future is digital, it has already
started transforming the world as we knew it and this
is just the beginning.

Q.2 How does access to internet in Pakistan compare to regional neighbors and what
can be done to improve access to internet in the country?

Pakistan has immense potential and demand for With a need for digital connectivity, the pace of
digital adoption. Currently, Pakistan ranks 90th on the provision of services in underserved areas can be
inclusive internet index with India, Bangladesh and further accelerated by USF and simultaneously, the
Nepal ranking at 49, 82 and 83 respectively. There are USF fund can also be used to temporarily subsidize
multiple factors that contribute to internet adoption the provision of smartphones till the local production
in the country including smartphone penetration, catches up with the demand. Also, in view of the
literacy and availability of services. increasing demand for data in the country, it is
important to make telecom infrastructure available
Telecom sector in Pakistan covers over 85% of at fair prices which also includes spectrum and
Pakistan’s population however, of the 184 million development of a spectrum roadmap for future
cellular subscribers, only 100 million are data demand. The Right of Way (RoW) policy was
subscribers. This represents the digital gap where approved earlier this year to improve internet access
people even with access to internet services are not as it allows for widespread fiberisation for high-speed
benefitting from the opportunities. Pakistan ranks connectivity. As a next step, its implementation is
91st on smartphone cost and 34th on mobile phone crucial for greater penetration of telecom and digital
tariffs which justifies the digital gap in the country. services across the country.

Q.3 What can be done to improve financial inclusion in the country and what is the
economic impact of mobile wallets like Easypaisa in Pakistan?

Financial inclusion goes beyond commercial banks cashless payment platforms to thrive, and Easypaisa
and microfinance institutions. The solution for has been at the forefront of making this a reality.
financial inclusion is Fintech which is based on digital With a portfolio of payments, remittances, lending,
channels to reduce infrastructure and geographical insurance, disbursements coupled with over 1200
barriers. A decade ago, only 10% of the population partnerships across sectors, we’re transforming
in Pakistan had access to any form of financial Pakistan into a cashless and inclusive society. With
inclusion. Easypaisa was introduced in Pakistan in a massive annual throughput of PKR 1.8 trillion and
2009 and following its footsteps came other mobile over 8 million active users, 3.6 million active app
wallets and traditional banks integrating digital users, the highest number for any financial app
payment solutions. Today, 22.9% of the population in in the country, Easypaisa is creating a transparent
the country has access to financial services. economy that Pakistanis participate in to earn a
livelihood, empower lives and remove barriers.
To accelerate the uptake of financial services, it
is essential for unconventional and technology The ambition of financial inclusion cannot be
driven institutions to continue innovating. Alibaba’s achieved by solely brick-and-mortar banking
Alipay is an example of a non-traditional player that infrastructure. Low-cost delivery channels such
capitalized the digital evolution in China. The key to as retail shopkeepers serving as financial agents
success is to never stop innovating and adapting to has proven to cost-effectively provide meaningful
consumers growing needs and that is what Alipay benefits to masses. The underserved face unique
did. Not only did Alipay provide payment solutions for obstacles and have unique financial needs. There
the booming e-commerce in China, after its launch should be ease in the regulatory framework to
in 2004, it also transformed consumer’s payment encourage innovative solutions while ensuring
habits. access to affordable smartphones resulting in
With a highly unbanked population, strong mobile increased penetration of financial inclusion; which
penetration, along with a high cash-to-GDP ratio, has also been identified as an enabler for 8 of the 17
Pakistan represents an ideal environment for UN SDGs .

07 www.pide.org.pk
Q.4 How can the telecom sector contribute towards internet for all?

The telecom sector is the backbone of a digital e-health, entertainment, business solutions and
economy and lays the foundations required for many more. Besides the efforts from the industry to
the digital ecosystem to thrive. Connectivity is no ensure connectivity services, we work closely with
longer a luxury – it has become a fundamental right! USF, a private-public partnership, to reach remote
Connectivity tariffs are the lowest in Pakistan in the areas.
region and it is also amongst countries with lowest
tariffs in the world . Pakistan has close to 100 million About two decades ago, the cost of acquiring a basic
mobile internet users and only 2.8 million broadband voice sim and paying call charges was a lot more
and fixed internet users. This explains the impact than it is today. While enabling the society with all
that telecom sector has in relaying the benefits of the mentioned benefits, mobile and data services
digital opportunities to masses in the country. are connecting masses in Pakistan. To continue
reaching the underserved for digital connectivity,
Telecom sector is not only providing ease of access it is important to have telecom infrastructure
by heavy infrastructural investment in the country, including spectrum, affordable smartphones,
but it is also providing platforms for growth and and implementation of Right of Way policy
value added services through applications and for fiberisation.
partnerships in the form of e-education, M-Agri,

Q.5 What support does telecom sector need from the government in realizing the
dream of the internet for all?

In this increasingly connected world, we do not to a single operator in Australia. There is a significant
want anyone to be left behind from accessing gap in anticipating present and future connectivity
opportunities that the new era connectivity brings. needs. Spectrum should be made available at fair
The Government is an important stakeholder in prices and there should be a spectrum roadmap
enabling the digital ecosystem in the country. to identify and proactively take measures to fulfill
Telecom is a sector enabling other sectors and it is the future connectivity needs. To improve affordability,
backbone of the Digital Pakistan ambition. Currently, penetration and access, telecom services should
Pakistan is one of the lowest spectrum assigned be subjected to rational and harmonised taxation
countries in the region with only Nepal behind us. regimes. Also, the approved Right of Way policy and
According to a World Bank study, the total allocation industry status should be implemented which is
of spectrum in Pakistan equals spectrum allocation instrumental in increasing access internet.

Q.5 What support does telecom sector need from the government in realizing the
dream of the internet for all?

As highlighted by GSMA’s Gender Gap Report 2021, skills. Under this initiative, Telenor Pakistan trained
in Pakistan, there is a gender gap of 34% in mobile over a thousand women in digital skills including
phone ownership and this gap increases to 43% solving the right problems and upskilling females
in usage of mobile internet. To bridge the digital in utilizing digital tools to help scale their business.
gender divide, it is important to provide access to Besides this, I am also an active member of Male
digital services, have readily available and affordable Champions of Change initiative on behalf of Telenor
handsets and create awareness of how to make the Pakistan. This initiative includes active members
most of opportunities provided through the internet. who work within and across their organisations to
focus and lead on gender equality, diversity, and
To bridge the digital gender divide, it is important to women’s empowerment in the society as a whole.
have significant female representation in economic This has had a significant impact on how we see
contribution and this can be accelerated by online diversity & inclusion in our business sectors. Telenor
business models. In partnership with World Bank’s Pakistan also has a dedicated initiative, Naya Aghaaz,
Girls Learn Women Earn (GLWE) initiative, Telenor to help transition women into the work-life after a
Create, the design academy at Telenor Pakistan, career break.
developed a comprehensive curriculum to train and
enable aspiring women entrepreneurs on digital

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STARTUP AND DIGITALISATION
OUTLOOK IN POST-PANDEMIC
PAKISTAN
TELENOR PAKISTAN

Last year’s global outbreak of the coronavirus changed only industries witnessing growth thanks to increased
the way businesses around the world operate. It was demand from the locked-down populations around
challenging for startups and small businesses that rely the country. They can fill a gap that traditional services
on human interaction for operational sustainability. can no longer cover with Pakistan’s population
But, with no choice, the world adopted the digital way confined to their homes.
of working and living.
One such startup is Sehat Kahani – currently part
The new way of working enormously affected startups of Telenor Velocity that provides telemedicine
and small businesses worldwide, and many had to halt services through e-clinics and a mobile application.
their operations, implement pay cuts, or even let staff The company is a supporter of the government’s
go. The World Health Organisation reported that 196 Digital Pakistan initiative and offers professional
out of 251 countries were severely affected by Covid-19, consultations through video calls for added peace
making up 80% of the world’s population. While 10% of mind. Through Telenor’s direct operator billing
of the world’s intermediate goods trade originates business model, scheduled for September this year,
from China, it reported a 17.2% decline in exports Sehat Kahani can tap into more customers and offer
with a grim outlook on the future with the pandemic them customised services.
outbreak. These declines and delays in exports from
China resulted in production and manufacturing With COVID-19, almost 1.2 billion children were out of
disasters in countries worldwide that depend on the classroom, with schools shut across the world. As a
Chinese trade. Considering the uncertainties faced result, education changed dramatically, giving rise to
by factories globally because of the shortage of parts e-learning. EdTech startups offered the increasingly
and raw materials, the need for digitalisation in the popular options for study at home students and out-
modern way of doing business became even more of-school children around the country. The increasing
apparent. need for remote and digital learning requires at-
home alternatives to make up for the lack of school
In Pakistan’s circumstances, the race to digitalise attendance. The Higher Education Commission
the economy is laden with obstacles that threaten ordered educational institutions to deliver online
the existence of modern small businesses. There is lessons, highlighting profound inequalities that affect
a strong need for increased government support students all over the country, especially those from
in keeping startups afloat during the recurring lower-income families.
pandemic this year. It’s important to remember that
the pandemic will subside, but today’s digitalisation Startups in this sector should take this as an
will lay the groundwork for tomorrow’s progress. opportunity to create better distance learning
solutions and make education accessible to everyone
A recent report by Invest 2 Innovate revealed that in Pakistan, irrespective of background or social
Pakistan’s startup ecosystem was experiencing standing. Edkasa is an alumnus of Telenor Velocity
rapid growth before the global pandemic. It had that offers an exam preparation app that helps high
raised more than USD 32 million in 2019 compared school students prepare for their standardised exams.
to USD 24.5 million in the year before. In addition, It is offering a digital alternative to private tuitions.
the report detailed the effects of the pandemic on It also provides a vast library of YouTube classes for
local businesses as they either pause operations or free. The relevance of the service offered by the app
shut down entirely because of the uncertainty in the triggered its success and allowed the startup to raise
country’s macroeconomic climate. a funding of USD 320,000.

The need for social distancing and isolation allowed E-commerce startups also saw immense growth in
startups that operate in the fintech, EdTech, some areas while suffering in other categories. For
e-commerce and health tech sectors. These are the example, consumers worldwide downloaded grocery

09 www.pide.org.pk
delivery apps in large numbers, starting a new trend in e-governance, digital skills and literacy, and finally,
e-commerce that had not existed before. In addition, innovation and entrepreneurship. With clear key
E-commerce was stretching out to include essential performance indicators for each area, Pakistani
items, such as groceries and medicine too. So, to cater startups can take digitalisation to the next level.
to the changing consumer needs, many e-commerce
businesses began dealing with necessary things to There is an enormous amount of potential in the digital
stay ahead of the curve. services sector of Pakistan, especially considering the
vast and young talent pool that can lead the country’s
To sustain the ongoing shift towards digitalisation digital transformation from the forefront. With a
and to expand IT in Pakistan, there needs to be a strong digital focus in leadership, startups, businesses
focus on five different areas to make Digital Pakistan and government departments can welcome citizens
a prosperous reality for tomorrow’s startups - to a Digital Pakistan that leaves no one behind.
improved access to connectivity, digital infrastructure,

About Author
Khurrum Ashfaque
With 29 years of international and local technical experience as
the Chief Operating Officer, Khurrum Ashfaque heads the Digital
& Technology divisions at Telenor Pakistan. He is currently also
the Chief Technology Officer (CTO) of Telenor’s Emerging Asia
markets and has been associated with Telenor Pakistan for over
15 years. He has academic and professional qualifications from
NED University Karachi, Carleton University, INSEAD, and Harvard
Business School.

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BROADBAND FOR ALL –
PERCEPTION AND REALITY
VC, PIDE

Broadband has become an absolute essential for penetration contributes to an increase of 2-2.3% to
people to participate in socio-economic activities. GDP per capita.
A decade ago there was a debate on digital divide
between the ones who have internet and the ones who Pakistan started its journey into internet availability
don’t. Today with over 60% of the global population in 1990s and today stand as high speed broadband
using the internet, the focus is now towards the enabled country. We successfully passed through
quality and speed. The economic shift caused by the early phases of digital era when global digital
the broadband across the globe is a testament of revolution was setting in. A shift from basic internet
broadband revolution. The ITU research revealed to high speed robust broadband in Pakistan in the
that in least developed and landlocked countries, last couple of years emphasized its significance in
an increase of 10% in mobile broadband penetration creating a knowledge-based economy by generating
yields an increase of 2.5-2.8% in GDP per capita, job opportunities and raising productivity.
whereas an increase of 10% in fixed line broadband

Broadband Subscribers and Penetration

The last ten years were phenomenal in terms of FY 2021 data usage reached at 6,855 PB. This shows a
increased broadband penetration and subscriber sharp rise in the data usage per subscriber which was
base which showed almost 68% average annual around 1 GB per subscriber in 2017 and today stands
growth rate over last ten years. Today we have a at over 5 GB per subscriber. The operators have been
total broadband subscriber base of over 102 million investing in expansion of networks not only in urban
with broadband penetration crossing 46%. The area but the far flung under privileged areas have
surge in subscriber base was witnessed right after also been provided with the facility through Universal
the introduction of 3G services in 2014 when the Service Fund. Today we have over 43,637 cell sites
subscribers grew by almost 350% in one year. The that are broadband enabled, five years ago there
data usage also grew tremendously. The average were less than 28,000 cell sites. Mobile broadband is
annual growth in last 5 years was 95.5% and during available at lowest possible prices across the country.

11 www.pide.org.pk
 Data Usage, Growth and Data Usage/User/Month

According to the ‘ICT Price Trends 2019’ report of ITU other key socioeconomic sectors. To this end, PTA is
1.5 GB mobile data is being offered in Pakistan @US$ sparing no efforts to ensure the availability of quality
0.99 which is far lower than regional peers. Moreover, ICT infrastructure and broadband services across the
mobile data prices in Pakistan achieved the UN country at affordable rates. Ensuring that Pakistani
Broadband commission target, which recommends users enjoy the best broadband experience at fastest
that prices should be less than 2% of the GNI per speeds the regulator is all set to carryout spectrum
capita. In case of Pakistan, mobile data prices are only auction for LTE & VoLTE this year and 5 G services by
0.70% of GNI per capita. Although Mobile broadband 2023. Issuance of Right of Way Policy is another major
is growing immensely over a period of time, there is a step towards enhanced broadband proliferation in
lag in fixed broadband penetration in Pakistan which the country which will be instrumental in increasing
is around 1.5% and needs consideration. In Pakistan the fixed broadband penetration and improved
broadband usage is increasing tremendously, people backhaul network for mobile broadband services.
from all segments of the society are now making PTA is actively pursuing the government of Pakistan
use of the internet for social, economic and all other and tax authorities to reduce the tax burden on
needs. Presence of Pakistani users on the social media telecom services in order to improve affordability and
platform is significant, whereby all channels are being expansion /up-gradation in networks. Similarly the
used. Facebook, twitter, Instagram and Youtube are regulator is also working on active network sharing
the most popular social platforms and only Facebook and national roaming so that broadband proliferation
has over 50 million users in Pakistan. can be improved.

Government of Pakistan through the Digital Policy of With enhanced broadband services, PTA will continue
Pakistan envisions “to improve its citizens’ quality of its efforts towards a digitally progressive Pakistan and
life and economic well-being by ensuring availability make this country a preferred digital market in the
of accessible, affordable, reliable, universal, and high- world.
quality ICT services.” This vision can be achieved by
creating a digital ecosystem that promotes the use
of technology in education, health, agriculture, and

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INTERNET FOR ALL
IDREES KHAWAJA
SENIOR RESEARCH FELLOW

What benefits will accrue to the online education allows, will give increasing. With high-speed
country, if the government provides working children time to educate internet available to more people at
access to high-speed internet to themselves. Properly implemented home in smaller towns and remote
our entire population? Here are programmes would even educate areas, this activity and hence IT
some illustrations. adults — the dream of 100 per cent exports will increase significantly.
literacy could come true. For more than seven decades, we
A person suspected of having have spent enough taxpayer money
contracted Covid-19 residing We are trying to establish on brick-and-mortar projects with
in a remote village travels 600 universities in every nook and corner low returns — on school buildings
kilometres to a city to get tested. of the country. Even if we gather that house cows not students, on
The lab tells him to come the next the financial resources to put up hospitals that do not have doctors
day to collect the report. The person the infrastructure, we cannot have and on roads that do not see traffic.
has two options, both of them enough good teachers. This scarcity Provision of high-speed internet to
costly — to stay overnight in a hotel can be made up by teaching online all would be an investment with
or go back home and come again from good universities in the main very high returns. The disruptions
the next day to collect the report. If cities. Again, high-speed internet is of AI having just begun, we
he had internet access in his village, required. can’t predict all the benefits at
the lab would share the report over this stage.
WhatsApp — imagine the time and The largest share of the final price
money saved at the national level that the consumer of agricultural The PIDE Reform Agenda
and the alternative uses of such commodities like wheat pays, recommends ‘internet for all’ in the
saving. Putting time and money goes to the infamous middleman. near future. To fulfil this aim, if the
saved to other uses means more Can we eliminate the role of the government has to sell spectrum
income for the individual and a middleman? Yes! With access to (ie frequency) to mobile phone
higher GDP for the country. internet and using a well-designed operators at a nominal price, this
app, farmers can directly strike a should be done. If this requires
In fact, a significant proportion of deal with wholesalers and retailers having 5G, that should become
the population faces health issues based in towns, circumventing the priority number one. If access
but does not have access to good exploitations of the middleman. requires bringing in more mobile
healthcare services. Telemedicine Higher profit margins will motivate phone operators, this should be
can ensure good medical advice farmers to produce even more ensured. The focus of all such efforts
for residents of remote rural areas — thus contributing to poverty should be ‘internet for all’ and not
and smaller towns — some medical alleviation. revenue generation through selling
issues will be resolved online while spectrum at exorbitant prices.
others would need a visit to the One of the few activities that
doctor. Sound professional advice have flourished during Covid is Those who can afford to pay for
would motivate people to visit a e-commerce. However, its benefits the internet should be required
doctor — many fatalities and health have accrued to only a small fraction to pay; those who cannot can be
hazards will be avoided. The time of the population — those who have offered targeted subsidy. In the
and money saved would benefit access to the internet. Like farmers, initial period, access to provision
everyone. other rural women and men, who will call for expenditure — but this
manufacture handicrafts, do not would yield returns, in the near and
Thanks to Covid-19, we have get a fair return on their skill and distant future, in forms known and
discovered that imparting effort due to lack of access to unknown as yet.
education online is possible. Some markets. Access to the internet will  
sources say that around 20 million allow such skilled people to directly
children are out of school. The approach wholesalers and retailers
reasons include distantly located of handicrafts based in cities.
schools, poverty and child labour
to name a few. The provision of Pakistanis are already making a
internet facilities to such children, mark in freelancing and therefore
and the time flexibility that IT-related exports are rapidly

13 www.pide.org.pk
Interview

MOHAMMAD ALI IBRAHIM

HEAD OF MARKETING & COMMUNICATIONS, MMBL

What is the role of telecommunication in providing internet facilities and where do we

stand currently?

Given my background in the telecom industry and circumstances cannot be undermined as it is only
owing to my current role in the financial sector, I believe going to further increase in the times to come.
connectivity is the key right now as the demand for Internet usage across Pakistan surged by 15% as soon
technology is growing more with each passing day. as the first lockdown was imposed. Moreover, as per
The ongoing pandemic brought life to a standstill the latest statistics from PTA, Pakistan has over 185
and the only way to continue going on was adapting million cellular subscribers, out of which 100 million
to digital technologies. We saw many companies use 3G/4G. This shows the huge potential that the
going through a complete digital transformation telecom sector has to offer and the vastly growing
for sustaining themselves. The ever-increasing role expansion of the sector speaks volumes about the
of telecommunication and connectivity under such benefits it is providing to the masses.

How is the microfinance sector empowering people? How is Mobilink Microfinance

Let me give you a brief background about the financial own, independent and free. The incredible role being
landscape in Pakistan. The country is home to over played by the central bank and the microfinance
220 million people and out of them, only 29% are sector under its guidance in uplifting the marginalized
banked. This means that a vast majority comprising segments of the economy should not be negated or
of over 70% is still waiting to be served by financial buried.
institutions and banks. A country cannot progress or
succeed unless its masses are truly empowered by Our services are different because we are trying to
placing everyone into the fold of financial inclusion. lessen the hardcore paperwork and facilitating people
with easy loan applications that they can effortlessly
Communities that were previously completely at the understand and submit. MMBL is the largest digital
mercy of loan sharks who would charge exorbitantly bank of Pakistan with over 34 million registered users,
high interest rates and enslave generations after and we have set ourselves the goal of empowering
generations through financial bondage, now have maximum people going forward, including the
the chance to use microfinance to stand on their ones in far-flung areas, to promote financial

INTERNET FOR ALL 14

empowerment for all. offering convenient banking on the go and will make
the onboarding and loan-seeking process even more
We have very recently launched our new digital efficient for our users.
banking app, Dost-powered by MMBL, which is

What is your focus as a microfinance bank?

We are predominantly focusing on the rural areas individuals. SMEs and MSMEs are critical players
of Pakistan as they constitute a major portion of that enable the entrepreneurial infrastructure and
Pakistan’s population and out of our 100 branches help strengthen the national economy with their
nationwide, 85 are placed in such areas. Moreover, contribution to the Gross Domestic Product (GDP).
MMBL has a prime focus on financially empowering In Pakistan, around 99% of economic establishments
Small and Medium Enterprises (SMEs), women- are SMEs that jointly contribute 40% to GDP and 26%
led businesses, and providing housing finance to to the exports from the manufacturing sector.

Are the microfinance bank and a telecommunication company a good combination?

Absolutely. Telecommunications, the internet, and built a trust factor and credibility amongst the masses
digital banking go hand in hand. Jazz, the largest over time. The combination is particularly useful as we
telecom operator in Pakistan, and MMBL, the largest have the largest number of m-wallets and a digital
digital bank are sister concerns of each other and wallet cannot be used without a cell phone or cellular
our parent company, VEON, is based in Netherlands, connection.
Amsterdam. Moreover, the name ‘Mobilink’ has itself

How, in your opinion, is MMBL different from the commercial banks on the digital
banking front?

Microfinance is relatively a young, yet booming sector and sustain community engagement/ relationships.
in Pakistan, with its fair share of hurdles. It is individual-
focused and provides money to needy individuals We also offer nano-lending via our mobile wallet
or small businesses that lack access to conventional services, which can be as low as PKR 1000 and is
resources. Microfinance also has lower costs of capital easily availed through just a few taps on your phone.
relative to risk, limited collateral, convenient terms There is, of course, an AI-based algorithm developed
and conditions, and greater leverage than traditional by our data scientists which keeps track of the user’s
banks. Commercial banks have a major share of expenditure and usage patterns to identify whether
depositors in rural areas and facilitate lending in the you qualify for the loan or not. It considers aspects
urban whereas microfinance banks aid lending in like your major expenditure areas, and whether you
the rural communities due to ease of the process are timely fulfilling your financial obligations such as
while having more depositors in metropolitan cities. utility bill payments, etc.
Furthermore, microfinance banks are people-focused

What is your way forward from here on? Any particular plans in mind. Suppose we
expand the internet access in the country and increasing is connectivity everywhere.

The future is digital. The coming years will witness ever-evolving needs. We recently launched the Bint-e-
substantial growth in fintech and this trend will be Hawa deposit and loan account, which is specifically
taken up swiftly by microfinance banks, as evident aimed at empowering women from all fields and
from the sector’s performance through the recent backgrounds as it is a key strategic priority for MMBL.
global pandemic. A growing number of the population Also, Commercial Vehicle loan is one of our top-
is using cell phones and a vast majority of them have performing products. Other loans include Karobar
3G/4G connections (approximately 45.6%) in Pakistan loan, School loan, and Khushhal Kissan Loan, which
and this significantly indicates the inclination of are significantly improving the lives of our borrowers
people towards a more digitized world. To keep up and creating success stories, that positively impact
with this progress, it will be vital for MFIs and banks to communities around. We aim at further fostering
expand their operations through the implementation financial inclusion for all by introducing more digital
of more technology-oriented customer services and products and services, with increased ease of access.
improved digital financial ecosystems. We are putting great focus on digitalizing the overall
banking experience of our customers that would
At MMBL, customers are at the heart of everything ultimately help reduce our operational costs as well
that we do and we are constantly striving towards as increase our outreach, all across the country.
transforming our products and services as per their

15 www.pide.org.pk
CAN WE HAVE INTERNET FOR ALL?
HAFSA HINA
ASSISTANT PROFESSOR, PIDE

COVID-19’s spread poses a threat to humankind, as members who are also engaged in online classes or
the pandemic has forced many worldwide activities, are working from home.
especially educational activities, to shut down or
change drastically. Education institutions have had According to UNESCO, only around half of the world’s
to adapt to e-learning to use existing educational households (55 percent) have access to the internet. In
platforms to slow the spread of the virus. Digital the developed world, 87 percent of people are online,
learning is challenging at many levels, with limited compared to 47 percent in developing countries
or no-access to the internet has been one of the and only 19 percent in least developed countries. In
biggest challenges. If a student doesn’t have a device Pakistan, only 7 percent of individuals have computer
to connect with in the first place, finding a stable devices available, and only 67 percent of those have
internet may be the least of their concerns. And often, computers at home.
they have no option but to share with other family

Figure 1: Internet Usage Across the World (1990-2017)

Countries that wish to stay competitive in the global essential for technology-controlled businesses like the
economy are speeding up their adoption of 5G autonomous car industry and remote surgeries.
technology. South Korea, China, and the United States
are leading the world in developing and deploying Our market isn’t ready for such businesses because
5G technology. Sweden, Turkey, and Estonia, for Pakistan is still battling to penetrate 4G, which again
example, have taken major steps to make 5G networks suffers from a lack of smart devices and smartphones.
commercially available to their residents. Because of Nearly half of the subscribers use 2G technology with
a lack of enabling environment (current regulatory a less expensive mobile phone (clearly we are content
structure, finance) and the unaffordability of smart with ‘90s technology while the rest of the world enjoys
devices, the Pakistani market is lagging in adopting 5G the 21st century, see Figure 2). But why is this so?
technology. Major advantages of 5G are greater speed Well, affordability of the devices is one of the biggest
of data transmissions, lower latency. These make it impediments. Pakistan cannot capitalize fully on 4G

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and users don’t have 4G devices. Clearly then, it is We need to develop an entire ecosystem to leapfrog
suboptimal to divert to 5G – we need to first assess our because service providers alone cannot ensure the
abilities, infrastructure, and technology to adapt to 5G. availability of 5G.

Figure 2: Evolution of Mobile Communication with Main Features, from 1G to 5G.

Source: Guevara, L.; Auat Cheein, F. The Role of 5G Technologies: Challenges in Smart
Cities and Intelligent Transportation Systems. Sustainability 2020, 12, 6469.

The PIDE Reform Agenda for Accelerated and optic fiber cables. We can lay service corridors for
Sustained Growth clarifies that Pakistan’s future optic fibers along the side of highways. Companies
development will depend on the provision of interested in laying optic fiber can avail those services
internet to all. PIDE also recently organized a series and pay a fee to the government for utilization.
of “Internet for all” webinars and invited CEOs of
telecommunication companies to discuss and Funding should not be an issue as we have a Universal
debate: (1) the major challenges faced by telecom Service Fund (USF) and Ignite-National Technology
companies (2) the financial resources required to Fund (Ignite). These two key funds, that are generated
make high-speed internet accessible to all? and (3) by telecom firms and controlled by the government.
can the State incur this expenditure? We must use these funds wisely to ensure that
everyone has access to cheap internet and gadgets.
Telecommunication companies face a key issue in the These finances are sufficient, so the government
government auction of spectrum release. Pakistan does not need to incur extra expenditure.
has released the smallest amount of spectrum in the
world, and we do not release new spectrum every We have learned from the pandemic that life without
year. The government hoarding of the spectrum is a the internet is very difficult. The internet has become
short-term money-making activity to fund its budget a divider rather than an equalizer by providing
deficit. It creates an artificial scarcity of spectrum, services to selected segments only. The earlier gains
forcing service providers to pay high costs for new being made towards achieving SDG goal of primary
spectrum release. Many countries have experienced school education may be wiped out. This is a cause for
high spectrum prices in the early stages of telecom alarm for all of us. Children from poor families lacking
development. However, they quickly identified and devices and/or internet connectivity are more likely
addressed these mistakes. We must understand that to be denied education. This will further increase
companies overspending on a spectrum means they the existing educational disparities. The hardships
have fewer resources left for business activities. They of life will continue for a lifetime because careers,
will be unable to improve quality or coverage, putting wealth, and health are closely linked to educational
their long-term growth at risk. Pakistan must learn attainment.
from other countries’ experiences and overcome
spectrum concerns to provide faster services in the The telecommunication sector must be recognized
long run. as a sector that requires a sustainable framework to
develop. With shifting market dynamics, this sector
Both optical fiber and internet penetration are low stimulates and helps other sectors, such as education,
in Pakistan, with only 10 percent of mobile towers commerce, health thrive in the economy. We must
having optical fiber connections. Optical fiber firms redefine our goals with evolution of technology. We
face similar challenges in the absence of a unified must ensure internet for all is a sustainable way to
strategy or framework. Civic authorities see this as a achieve economic growth.
money-making opportunity to collect a fee for laying

17 www.pide.org.pk
WILL 5G BE A GAME CHANGER
FOR PAKISTAN - ARE WE READY?
UNBREEN QAYYUM AND SABA ANWAR

What 5G is?

5G, the fifth-generation cellular network is the latest sectors of the economy. Especially in the ones that are
development in the field of IT that provides a whole rapidly adopting smart digitized processes and have
range of new experiences. This novel global wireless different network requirements. The enhanced mobile
standard is meant to deliver multi-Gbps peak data broadband and low latency communication will bring
enabling a network that can connect multiple devices about limitless opportunities and possibilities for
including machines. For consumers, 5G will ensure vital sectors that require instant decisions like traffic
better user capability through low latency, high control, health, manufacturing, agriculture, energy,
speed, and more reliable connectivity. 5G is expected transportation, education, and tourism, among
to increase speed by 20 times, lower latency by 10 others. International Telecommunication Union (ITU)
times, and increase the density of devices connected has already identified three broad categories of use
per square kilometer by 10 times in comparison with cases (Figure 2)
4G (Figure 1).
• Enhanced Mobile Broadband (eMBB)
5G will not only be a game-changer in the • Ultra-reliable and Low-latency Communications
telecommunication sector but it will enhance the (uRLLC)
productivity of the whole economy as well. It will • Massive Machine Type Communications (mMTC).
bring new experiences for the network ecosystem
with massive upscaling in connectivity, bandwidth,
and data transfer. The impact of this upscaling will
ultimately lead to momentous effects on all the other

Figure 1
Source: International Telecommunication Union (ITU).

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 Figure 2
Source: International Telecommunication Union (ITU).

Box 1
Wake-up call
•
• 89% of the population in Pakistan cannot afford internet, IMF

• Pakistan has been ranked 90th out of 120 countries on the Inclusive Internet Index 2021 by the
Economist Intelligent Unit (EIU).

• Pakistan falls into the last quartile of the Global Internet Index countries overall & it ranks 24th out
of 26 Asian countries.

• World Bank data (International Telecommunication Union and World Telecommunication/ICT

Indicators Database) shows that 17% of Individuals in Pakistan used the Internet in 2019.

• The number of internet users in Pakistan increased by 11 million (+21%) between 2020 and 2021.

• Internet penetration in Pakistan stood at 27.5% as of January 2021.

• The internet is supplied by 6 submarine optical fibers and four operators in Pakistan. The internet
coverage through mobiles is 85% + population but there are approximately 35% of people that
have no access to any signal no 2G, 3G, 4G, 5G. The voice for better internet at an affordable price
is surging.

State of Pakistan Economy

• The download speed during the 5G trial in expected to benefit from future innovations in
Pakistan was reported to be 1.685 gigabits per distance learning, public safety, manufacturing,
second. transportation, and health, etc.

• 5G will help the digitalization of Pakistan • The introduction of e-governance will enhance
by connecting people with robust purpose- the enabling role of the government and bring
built technology opening up opportunities about transparency and efficiency in processes.
for industries as well as individuals. They are

19 www.pide.org.pk
5G will increase the demand for fiber as each build- tem with 5G we require an up-gradation to the lat-
ing needs a fiber connection and a small antenna/ est technology from both customers and operators.
base station for a cellular company. It will increase de- Even if the Spectrum is available in our country, 5G
mand for mobiles that are compatible with 5G tech- will be more expensive as the companies will need
nology and we also need new devices to operational- to upgrade their apparatus. This will put pressure on
ize 5G in our country. In the case of Pakistan, we are existing companies. The four operators provide 4G
yet to capitalize on our investment in 4G. We should but 50% of our Sims sold today are 2G and 50% of our
opt for a technology that is relevant to the country. handsets are sold in the market can hardly support
Korea went for 5G when they had an 80% penetra- 2G. The benefit of utility comes in when the number
tion of 4G handsets. In our country, around 60% of of users is high. Providing 5 G to a small privileged
the users do not have the 4G devices; the 4G was in- community will be suboptimal while investment in
troduced 10 years back. We need another 3-4 years to 4G will improve service quality many times.
get used to 4G. To develop a fully compatible ecosys-
Figure 3
Source: International Telecommunication Union (ITU).

Source: PTA website.

With the existing infrastructure, a lot is going on working exceptionally well but still, we face issues
like vehicle tracking, driver behavior, app economy, in online payments. People are not comfortable
and weather and pricing information to farmers, etc. with online or digital payment even now and there
that has increased their productivity. Instead of 5G, is a natural evolution and adoption of the latest
we need to more focus on e-commerce that is more technology so let the market decide. One strategy
valuable for the economy of Pakistan. Easy paisa is could be to move gradually up the ladder.

Box 2
Wake-up call

Challenges

• 30% higher tax on broadband compared to luxury products

• 50% of customers still using 2 G
• 90% of handsets made in Pakistan are feature phones.
• High Taxes on smartphones.

On the one side we are promoting 5G technology orders by the Punjab government to block SIMs
but on the other side producing phones for 2G if anyone refused vaccination are very alarming.
technology and this creates huge problems in the Which business plan will be viable in this situation?
adoption of latest technologies. We close internet We should think about why investment is coming
devices/cell phone signals in any political event for in India but not in Pakistan by major investors like
security reasons and it affects business. The latest Google and Facebook.

INTERNET FOR ALL 20

 Box 3
Wake-up call

Advocacy and support for a digital Pakistan:

Improve internet access: Review taxation on broadband and devices
Eliminate Cash: Preference to digital payments through tax incentives
Value Chain Enhancement: Internalize digitalization agenda within the private sector
Stop Cell phone Blockages: for security reasons.

Global Positioning

• Pakistan has been ranked 90th out of 120 • In the telecommunication infrastructure index of
countries on the inclusive internet index 2021 by UNDESA, Pakistan is behind India, Bangladesh,
the Economist Intelligent Unit and it stands well Nepal, and Myanmar.
behind India, Bangladesh, Nepal, and Sri Lanka.
• In the world economic forum index of 141
• In-network readiness index, UNCTAD’s countries, Pakistan is at 110th, again behind
e-commerce index, Pakistan comes after Nepal, Bangladesh on Sri Lanka, and India. In the
Bangladesh, India, Sri Lanka, Iran, Thailand, and ICT development index from September 2019,
Malaysia. Pakistan is behind Bangladesh, Nepal, Myanmar,
and India.
• In the UN department of economic and social
sciences, e-government development index,
Pakistan ranked below Myanmar, Nepal,
Bangladesh, and India.

Way Forward

Digital communication has a major role to play can be the best policy option also. The policymakers
in economic development and growth both in can then ensure the efficiency of the “best suitable
developed and developing countries. The poor technology or technologies” via timely investment
connectivity and accessibility hampers the incentives and a favorable regulatory framework.
productivity of the businesses and creates further This would reduce financial pressure both on the
divides in the economy. There is a common consensus government and the cellular companies.
in the developed countries that we need greater
coverage and consistent accessibility rather than The 5G is in an embryonic stage of development
high-speed data transfers. The universal coverage in most of the countries, yet the discussion is
should be taken up either as a basic right addressing intensifying over the cost-effective rollout of the
the divides in the society or industrial policy of the technology in Pakistan which is the new global
developing countries. wireless standard. This is very challenging for the
governments of developing countries. The factors
According to a World Bank study, the cost of reaching that have contributed to the cost-effective rollout
universal access by 4G in developed countries of the 5G technology amounts to standardization of
requires 1.6 trillion USD which amounts to 0.6 % of the LTE, enhanced spectrum efficiency, and allocation of
GDP. In Pakistan, like other developing countries, the additional spectrum. Pakistan though believing in
budget is severely constrained by major challenges of digitization as a pillar of growth has yet to materialize
debt servicing, poverty eradication, universal health, on 4G LTE and existing spectrum auction. The 5G
and education. Amidst all the challenges, Pakistan seems to be a distant reality.
has allocated 0.83 % of its PSDP to science and
information technology for the FY2022. This has no A highly competitive and open market without undue
comparison with the amount required for universal regulatory duties for smartphones and devices is
access of 4G. required that would enhance the penetration of 5G.
The “Suzuki mobile” plan needs to be revisited. The
Based on the existing GDP per capita and population restrictions on internationally standardized mobiles
density, we need to determine the most suitable and devices to protect local production leads to
technology for Pakistan’s digital landscape rather inherent inefficiencies as per experiences in the
than leapfrogging to 5G. The mix of two technologies automobile sector.

21 www.pide.org.pk
HOW DIGITAL WE ARE?
HAFSA HINA
ASSISTANT PROFESSOR, PIDE

COVID-19 and Digitization

COVID-19 has changed a lot and digitalized us. In they have a computer, smart phone and internet? Let
this lockdown, peoples are doing everything from us estimate from the data of Household Integrated
education to office work online at home. But do we Income and Expenditure Survey (HIES) 2018-19 on ICT
know how many of us have access to the internet? And indicators.
can we gauge the person’s backwardness by whether

Province Household Count

Khyber Pakhtunkhwa (KPK) 3,800

Punjab 8,484

Sindh 4,551

Balochistan (BA) 1,978

TOTAL 18,813

According to this dataset (see Table 1), only 7% of the computers. Interestingly, those who do not have a
individuals[1] have the availability of computers and device say that the major reason is that they do not
only 67% of them have computers at home. But don’t know how to use it, and 25% say they use a smart
worry too much about the 7% because people in phone instead. According to this data, only 14% of
developing countries are sharing luxury commodities individuals have a smartphone.
with each other. Therefore, 17% of household[2] have

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 Table 1: ICT Indicators from HIES 2018-19
Source: Calculations are based on HIES 2018-19
Province
ICT Indicators
KPK Punjab Sindh BA Pakistan
Availability of Computer (Desktop, Laptop,
7% 9% 7% 3% 7%
Tablet) at individual level
Availability of Computer at household level 17% 18% 14% 7% 16%
Availability of Computer at home 70% 69% 62% 65% 67%
Don’t know how to use 71% 52% 45% 54% 54%
cultural reasons 13% 29% 26% 25% 24%
Not using Affordability 8% 15% 19% 14% 14%
computer due Privacy Concerns 1% 1% 0% 0% 1%
to Use substitutes like smart
5% 6% 9% 4% 25%
phone
Other 2% 2% 2% 0% 5%
Availability of Smart Phone 14% 15% 13% 8% 14%
Use of internet in last 12 months 15% 17% 17% 7% 16%
Home 80% 84% 76% 85% 81%
Location of Work 4% 3% 3% 4% 3%
use of internet Place of Education 2% 1% 1% 2% 1%
Other 13% 2% 4% 1% 3%
Email, chatting, Facebook,
Voice and Video calls on -
Skype, whats App, 87% 86% 86% 89% 87%
Downloading /watching
movies, dramas etc..
Education and research 4% 5% 4% 5% 4%
Purpose of Information seeking
1% 1% 2% 1% 2%
using Internet (news,health, Govt., etc.)
Business Purpose 0% 1% 0% 0% 1%
Downloading software,
0% 0% 0% 0% 0%
programs
Online shopping/banking 2% 1% 1% 1% 1%
Doing All of Above
6% 6% 6% 3% 6%
Activities
Do not need 54% 51% 45% 51% 50%
Do not know its use 20% 36% 31% 16% 29%
Cost of Internet is too high 2% 2% 7% 3% 3%
Not using Don’t know what Internet
10% 5% 8% 22% 9%
internet due to is
Not allowed to use the
8% 5% 5% 4% 5%
Internet
other 6% 1% 4% 5% 3%

23 www.pide.org.pk
Internet Facility Availability
Digital Inequality
If we look at the availability of internet facility, we find
that only 16% of individuals have used internet in last 12 As information, services and resources move online,
months and about 80% use it at home. 87% individuals digital inequality comes as a form of social inequality
are using internet for entertainment and only 4% for and will be the greatest challenge. Now we move
research and education. Again what is interesting to measure the use of internet depending upon
is the reason why they don’t use internet. The major the socioeconomic conditions of the individual. An
reason cited is not cost, but the belief that they don’t index[3] which measures the socioeconomic condition
need it and don’t know how to use it. of an individual which includes availability of durable
goods, per capita expenditure (as a measure of per
If we look at this information for the provinces, capita income) and average education of individual
Balochistan is the most backward in terms of aged 18 or over of each household. Then define
digitalization having low availability of computers, disadvantage individual are those belonging to the
smart phone and internet. And perhaps unsurprisingly, 30% of the lowest value of the index and advantage
Punjab leads in digitalization. individuals saturating in 30% highest index. In Table 2,
we see only 1% of disadvantaged individuals and 28%

Table 2: Internet Usage based on Socioeconomic Conditions

Source: Calculations are based on HIES 2018-19

Use Internet Do not use Internet

Disadvantage 1% 99%

Advantage 28% 72%

Based on this information we can easily find the segregation among the disadvantage and advantage
socioeconomic digital segregation by using D-index[4]. group is 0.498 or approximately 0.50, which indicates
According to the D-index, the socioeconomic digital the hyper segregation.

Government Steps

In the view of this segregation, an effective step of the determine how much the student has absorbed or
government is to launch a first educational channel learned.
on TV called teleschool. It is delivering content for
grades 1 to 12 from 8 am to 5 pm every day. How many In our case, the student fails unless he memorizes the
people can benefit from it? It depends on whether lesson. Many people do not know about this channel
their children are going to government school and because their children are going to private school. So
have a TV. According to PSLM 18-19, 51% of households public school education is not a concern for them at
have TV. A teleschool is a stop-gap policy measure all. As per PSLM 18-19 (see Table 3), 56% of students are
and only effective in the short-run. Why? Because its going to government schools and only 49% of these
only objective is to provide education according to the students have a TV at home. Therefore, this program
curriculum of government education. Assessment is not effective in reaching the majority of students,
of the student is not the goal, so there is no way to the remaining 71%.

INTERNET FOR ALL 24

 Table 3: Students in Private and Public Institutes
Source: Calculations are based on PSLM 2018-19

Type of school/institution currently attending

Grade
Government Private Other Total
Class KG-intermediate 22572 12835 2476 37883
Diploma 194 80 15 289
Bachelor level 856 264 131 1251
Master level 192 49 58 299
Professional Degrees 185 137 6 328
Total 23999 13365 2686 40050

Final Thoughts

The majority of our private schools and universities

are taking online classes, but internet access for the low trust equilibrium zone where users tend to be
students and faculty alike remains a key challenge. less engaged and less patient with frictions online. To
In terms of digitalization and access to information make Pakistan digital brings more challenges which
communication technology, Pakistan lags far behind need to be addressed both in policy making and
other countries. In the Digital Evolution Index 2017, implementation.
Pakistan was ranked 56th out of 60 countries. It is in

1. ICT indicators are for individual 10 years and above. 115632 are total individuals and
among them 23668 belongs to KPK, 50493 belongs to Punjab, 28394 from Sindh
and 13077 from Baluchistan.

2. 24809 households are in the sample.

3. Principal Component Analysis is used for index calculation

!"#$%"$# '($%! -*" !"#$%"$# '($%!

𝐷𝐷 = 0.5 ∑"!. ' − '
)*#+, !"#$%"$# '($% )*#+, -*" !"#$%"$# '($%
4. Duncan and Duncan (1955) introduced the D-index for segregation measurement.
It ranges between [0:1], where 0 represent a complete even distribution and 1 rep-
resent an absolute uneven distribution. If this index exceeds 0.5, it is consider as
hyper segregation. It is calculated by , where i represent the disadvantage and
advantage group.

25 www.pide.org.pk
COLLABORATIVE REGULATIONS
FOR DIGITAL PAKISTAN
SHAHBAZ NASIR, PTA

IT and Telecom sector is the backbone for digital PTA also bagged the distinction of implementing
economy. Fostering this economy requires extended the world’s first open-source, full-fledged Device
collaboration across the sector: a fundamental shift in Identification, Registration and Blocking System
the way regulation is executed and the stakeholders (DIRBS) in collaboration with Federal Board of
that it brings together - from cross-sector regulators Revenue (FBR), and the same has internationally
to market players. Pakistan Telecommunication been recognized by ITU as a flagship project. DIRBS
Authority (PTA), being a progressive regulator has had a positive impact on the economy in terms
of telecom sector, is endeavouring to facilitate of an exponential increase of 125% in the commercial
digital transformation in Pakistan through such import of mobile devices since 2018. Furthermore,
collaboration, consultation and conciliation. PTA successful implementation of DIRBS has also
continuously evolve its regulatory practices and facilitated exploration of the opportunity for local
frameworks through holistic approaches and manufacturing of mobile handsets. The provision of a
consultative processes involving all the relevant level playing field has resulted in the authorization of
stakeholders. The International Telecommunication more than 26 local assembly plants and production
Union (ITU) has also appreciated PTA’s regulatory of over 42.7 million local mobile handsets till June
practices by ranking PTA as 4th Generation Regulator 2021. Through collaborative regulations, PTA is
(G4), thus placing Pakistan among the top five also facilitating the regulatory framework for local
regulators in the Asia-Pacific region and the only G4 manufacturing in coordination with the Ministry of
regulator in South Asia. Industries and Production.

ITU’s recognition of PTA as G4 Regulator is a Opting a modern regulatory sand-box approach,

testimony to the rapid evolution of ICT regulations PTA has already provided 5G tests/trials framework
in Pakistan and a move towards collaborative and authorization for 5G tests in Pakistan,
regulations. PTA is working with different sectoral allowing operators to conduct limited trials on
regulators and ministries because new innovations non-commercial basis so that the operators can
have a larger spread across different sectors like experiment with new technologies in environments
banking, education, commerce, health, agriculture that foster innovation. Going forward, commercial
etc. In this regard, PTA had an active collaboration launch of 5G Technologies in the country demands
with the financial regulator “the State Bank of even higher level of cross-sectoral engagements to
Pakistan (SBP)” to promote proliferation of Digital develop the required eco-system and use cases for
Financial Services (DFS) across the country. Towards the deployment of such cutting edge technologies
this end, both the regulators have signed MoU and in the country.
issued joint regulatory framework for the technical
implementation and interoperability of mobile PTA believes in integrated regulations aligned with
banking services. The financial and telecom regulators economic and social policy goals that culminate
have also actively worked on the implementation into globally recognized growth trends. Receptive
of National Financial Inclusion Strategy as well as to changing global trends, PTA now focuses on a
fostering of digital payments in the country. The collaborative approach governed by principle-based
widespread availability of biometrically verified SIMs inclusive regulation and decision-making. In future,
has greatly helped in the fast uptake of DFS in far PTA will continue to strive for ITU’s G5 regulator
flung areas of the country. PTA also developed CNIC- status by focusing on collaborative and cross-sector
mobile pairing verification mechanism through the regulations that leverage digital transformation for
collaboration of Pakistan Mobile Portability Database the benefit of the people of Pakistan with a guiding
(PMD), mobile operators & banks to enable remote/ vision of “Digital Pakistan”.
digital on boarding of customers, helping banks to
fulfill their KYC requirements.

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INTERNET EVOLUTION
IN PAKISTAN
PTCL/UFONE
“Internet has become a lifeline in the new normal„
It was necessary even before the pandemic, but now In its efforts to redefine the paradigms of
it has surely become a necessary part of our lives communication, PTCL has continually empowered
that is catering to our daily routines such as online businesses, education systems, and customers
education, e-Health, work from home, entertainment, with seamless connectivity. Quite recently, PTCL
e-shopping and a lot more. Particularly in a country launched its Fiber-to-the-home (FTTH) service called
like Pakistan that is striving to achieve digital Flash Fiber, which is the fastest internet in town yet
transformation, the significance of having seamless and delivers data to the customers with a blazing
internet service cannot be overlooked. In fact, we find speed of up to 100Mbps. Unlike other internet and
the positive impact of the internet in every aspect television service providers, this company’s cutting-
of life, for example, availing e-Bill facility instead of edge technology of Flash Fiber allows users to have
opting for paper bills. This will boost digitization and access to unlimited downloads with a reliable and
make our environment friendly, along with providing affordable service.
convenience to pay bills from the safety of our homes
with just a few clicks. Broadband fiber-optics use optical fibers to carry
information at the speed of light. What affects the
Lockdown during Covid-19 pandemic has greatly data speed is the way these little pulses of light are
impacted economic activities; however, leading encoded at one end and decoded at the other end.
telecommunication companies have played a pivotal Digital Pakistan vision is reshaping the country
role in ensuring availability of essential services rapidly as it is transforming everything from the way
like communication and connectivity. Pandemic government and citizens interact to market behavior
put a spotlight on the true potential of broadband and how consumers shop online and pay their bills
services, transforming and shaping how people lived through apps. It is not only boosting industrial and
their lives entailing day to day activities. Education, agricultural productivity across the country, but
healthcare and businesses were quick to adapt revolutionizing healthcare, and enables young men
virtually and digitalized, creating a huge nationwide and women with fruitful opportunities.
demand for telecom services. Being the national
telecom companies in Pakistan, PTCL ensured During these uncertain times, companies
connectivity and network resilience even in testing and organizations are moving towards digital
times and ensures availability of broadband services transformation to adapt to the current circumstances
24x7 for smooth operations across Pakistan. and ensure growth for not only the company but
their employees as well, along with better customer
PTCL also introduced e-billing system through its experience. This, however, is a challenge as staying
website and TouchApp, whereas Ufone launched ahead of the competition through innovation in
UPaisa for customer convenience. These initiatives technology has become the need of the hour.
not only provide people with option of getting their
bills online and save paper for environmental cause, With uncertainty comes opportunities as companies
but also encourages people to go digital and stay are taking an out-of-the-box approach, with creative
home & safe.

27 www.pide.org.pk
strategies that will ensure business continuity, goes. It has, will, and must continue to evolve as we
progress, better customer experience and yield move forward into a future where services such as
positive results. real-time transport and space travel will become a
norm in the lives of common people.
To say that the future is digital is an understatement
as the future is digital. We, as a nation, need to be in Telecom sector has played a key role to provide best
a place to enable Pakistan to grow while facing the services and remove the obstacles in communication
challenges of the digital world. The need of the hour and data exchange, we see companies like PTCL that
is to innovate, modernize our infrastructure, develop has worked tirelessly to ensure seamless connectivity
IT skills & technical education, think out-of-the-box across the country, better communication,
for businesses to be more creative and embrace increased access & convenience, easier networking
change to shine and progress to take Pakistan to the and entertainment & recreation, thus ensuring
next level of growth. productivity and morale of people in lockdown
through internet. PTCL has been connecting the
The conception, survival, and evolution of the internet nation and continues to support even in these trying
have been nothing but remarkable. It would be times.
unwise to assume that this is it as far as its evolution

INTERNET FOR ALL 28

JIO’S INTERNET REVOLUTION
IN INDIA
MOHAMMAD SHAAF NAJIB

Reliance Jio Infocomm Limited, To comprehend the upswing of the group as per which Mukesh
commonly referred to as Jio, a Jio Platforms it is important to Ambani got the ownership of the
subsidiary of Jio platforms and understand the rise of Reliance core petrochemicals business,
owned by Reliance Industries is Industries. Reliance Industries Ltd while
an Indian telecommunications Anil Ambani took over Reliance
company launched in December Reliance was founded in 1966 by Communications, the telecom
2015 and became publicly Dhirubhai Ambani as a trading arm of the group which had
available in September 2016. business, which over the span of been established recently along
India is now the second largest nearly four decades expanded with bunch of other entities and
telecommunications market in the into the manufacturing sector, thus forming the Reliance-Anil
world with the telecom subscriber petrochemicals and oil, gas, and Dhirubhai Ambani Group.
base reaching 1.15 billion by the petroleum industries. As a result,
end of year 2020, as per a report by Reliance from a small trading The brothers signed a non-
Statista in February 2020. India has business became an industrial compete agreement for a decade,
also become the world’s second powerhouse despite India’s but it fell apart mid-way. This paved
largest internet consuming country restrictive policies during the the way for Mukesh Ambani’s
with the average data consumption period of fantasizing socialism. Reliance Industries Limited to enter
of 9.8 GB as the country’s internet Following Dhirubhai Ambani’s the telecom sector. This evolution
subscriber base has now increased death in 2002, the Reliance industry of RIL following the non-compete
from 250 million to 550 million was under major threat due to the agreement break up would go on
in just three years. Reliance Jio’s power struggle between Mukesh to become the reason of India’s
contribution to this surge in and Anil, Dhirubhai’s sons. In 2005, internet revolution a decade later.
India’s telecommunication and Mukesh Ambani and Anil Ambani
internet market has been pivotal. reached an agreement to split

The Journey towards Jio Platforms

In 2010, India decided to take the next Box 1:

step forward in the development of What makes LTE so desirable?
its telecommunications sector. The
government started auctioning Long-Term Evolution, commonly referred to as LTE is the fourth
the high-speed data access 3G and generation or 4G wireless standard aimed at increasing network
4G spectrums. Multiple telecom capacity and cellular devices speed. LTE is the technology used for
companies were operating in wireless broadband communication between cellular devices and
India at this time, focusing their data terminals, making use of GSM and UMTS technologies.
efforts around upgrading their
LTE offers a higher peak data transfer as compared to the 3G
infrastructure and services only
technology, with reduced latency, stable bandwidth capacity and
to the 3G spectrum, and thus backward compatibility with existing technologies being used in
did not buy the 4G spectrum. cellular devices. LTE also has an active role in the development of 5G
Instead, the 4G, also referred to as technology. Summing, LTE can be referred to as the technology being
the Broadband wireless-access employed in 4G telephone services.
(BWA) auction was swept by a
completely unknown company Voice over LTE (VoLTE) is an upgrade on the LTE technology, as
named Infotel Broadband Services it uses a much more standardized system, especially for making
Limited having just $32,000 in high-definition voice calls. As a result, users can make voice calls
while using data services at high speed without changing the voice
revenues and a single subscriber.
quality in the call. On the contrary, the LTE technology carriers have
The very next day, RIL announced introduced a circuit-switched fallback mechanism as per which
having acquired Infotel, marking cellular devices using LTE technology fall back to 2G or 3G networks for
the return of Mukesh Ambani into the duration of the call.
the telecommunications sector

29 www.pide.org.pk
following losing his dream project there being a smaller universe of calling and 100 free SMS per day by
Reliance Infocomm to brother Anil manufacturers.” RIL. This proved to be quite a miracle
Ambani in the 2005 demerger. RIL in India’s price sensitive telecom
also put its energies in establishing Time has shown, RIL’s investment in industry. Jio at the time of its launch
a base for high-speed optical fiber the 4G infrastructure was as fruitful was already covering 18,000 cities
4G network across the country. as it could be. In September 2016, and towns along with over 200,000
RIL’s new telecom service called Jio villages in India, aiming to make
The Wall Street Journal penned was formally launched, with special Jio’s services accessible to 90%
down RIL having established itself focus on high-speed data instead of of Indian population in not more
as the sole owner of 4G spectrum just voice and messaging services. than six months. Mukesh Ambani
in India as: “By the time Mukesh Jio offered customers 4G internet was vocal about his objective to
Ambani builds a 4G wireless with data plans amounting to 1GB gain 100 million customers as soon
business, rivals will have had the per day at a time when all other as possible, and Jio, whose entry
chance to sign up millions of telecom operators were offering into India’s telecom sector has
customers for 3G services, leaving a 1GB data per month. Moreover, been nothing but revolutionary, by
smaller pool of potential broadband they set the price during the initial mid-2020 had gained about 388
subscribers. Also, 4G technologies days at just INR 05 per GB while million customers while also
are still being fine-tuned, whereas other companies offered in the carrying 70% of 4G traffic in India
3G networks have been up and range of INR 250-300 per GB. Jio during the year 2019. Consequently,
running for years in other parts also became the first network in India’s average data consumption
of the world. And 4G devices will India to provide 4G LTE services rose to 12GB per month in 2019, up
likely be more expensive than 3G and VoLTE services. All the prime from 90MB in 2014.
ones in the initial stages due to members were offered free voice

Box 2:
Why Swim Against the Tide?

When the Indian government started auctioning spectrum for 3G and 4G, all telecom companies at the time
put their money on 3G, while 4G was bought by a small sized firm called Infotel Broadband Services Limited.
RIL bought that company and started its journey in the field of telecommunications. The real question is: At a
time when all established Indian telecommunication companies were focusing on 3G, why did RIL become so
interested in investing the 4G segment?

In 2011, when Isha Ambani – daughter of Mukesh Ambani – was a student at Yale and had come back to her
home in India for vacations. She was, however, unable to properly submit her coursework due to poor internet
connectivity. This was when Mukesh Ambani, the head of RIL realized that the problem being faced by
her daughter was not an isolated experience, but a shared problem in all of India. Alongside poor internet
connectivity, Indian population was faced by overpriced data charges, making internet unaffordable for a
significantly large number of people.

Instead of just trying to install a better internet connection at his residence, Mukesh Ambani initiated his plans of
working on the Jio Platforms to provide high speed internet facility to all of India at affordable rates.

A simple realization from a father that the problem faced by my daughter is a problem faced by every Indian
national became the basis of India’s telecom and internet revolution.

More than just a Telecommunication Service Provider

Jio was launched as a telecom- In 2016, Jio launched its first Next, co-developed with Google
munication service provider, smartphone device through RIL’s is expected to be launched in
focusing primarily on Broadband electronic retail outlets, Reliance September 2021.
Wireless Access (BWA) - commonly Retail. Till now, Jio has launched
referred to as the 4G LTE and VoLTE three different mobile series JioNet Wi-Fi is the free Wi-Fi
services. Over the following few targeting different segments of the hotspot service that the company
years, Jio widened its artillery by society. These mobile phone series provides in cities throughout the
offering multiple products and have been named as LYF, JioPhone country. JioNet was started even
services. and JioPhone 2. Another series before the Jio cellular services were
of phone called as the JioPhone available to all of India. This way,

INTERNET FOR ALL 30

Jio managed to make a mark in Jio has also launched multiple JioFiber is the initiative by Jio
the market for itself even before it mobile phone applications. These Platforms to connect all of India
had fully operationalized its cellular include a web browsing app for with high-speed broadband
services. As part of JioNet Wi-Fi, Jio android phones, instant messaging internet through fiber optic cables.
was able to provide free wi-fi facility and video calling applications, Since 2015, the company has been
to spectators in six cricket stadiums entertainment apps, online expanding its fiber optic cable
across India hosting the 2016 World payments app and a few others network and began testing the
T20 cricket championship. focusing on various services for the service in 2018. It has been given
users. the name Jio GigaFiber.

Box 3:
FTTX- What is the all the hype?

Fiber to the X (FTTH), is the term used for internet services where broadband internet is provided to a home,
building, residential area, organization etc., referred to in the name as X, through optical fiber cable. The optical
fiber cable can carry a much larger quantity of data at higher speeds as compared to not only the conventional
copper wires used in older broadband systems, but also in comparison with the telecommunication service
providers.

It is capable of transferring data at speeds of 1Gbit/s, or Gigabits per second, to a much farther range of area, even
as far as tens of kilometers. This is not only quick as compared to all other available data transfer technologies,
but over long distances also prove to be more economical. As a result, FTTX is now being preferred by all major
communication providers globally in cases.

With rising fame of high-definition, on-demand video streaming applications as well as following the onset of
pandemic the realization of cost-effectiveness and efficiencies in online or work from home set ups, FTTX is the
go-to technology for high quality internet provision.

Courtesy of Jio’s quick expansion not only of its cellular services but also of the Jio GigaFiber initiatives, India
is now well seated at the foothills of an internet revolution and in coming years will reap the fruits of these
initiatives by Reliance Jio.

Reliance Jio, India’s Telecom Sector, and the Economy

Jio’s rise in Indian telecom sector operators to shut down as they focus on the various ways in which
has changed the dynamics of failed to reach the standards now Jio’s sudden rise has impacted the
the industry in the country. High set by Jio. Gupta, Raghav, & Dhakad Indian economy. They concluded
quality and affordable telecom (2019) analyze the impact of Reliance that despite the world coming to
services especially internet across Jio’s introduction on the telecom a standstill due to the pandemic,
India is no longer a dream, but a sector and consumers well-being. Jio never halted. Instead, Jio has
rapidly materializing reality. Jio has Gupta et. al (2019) reached to the managed to exploit the situation
positively impacted the telecom conclusion that Jio successfully and become the flagbearer
users in India and managed to managed to completely disrupt of digitalization in India as the
radically alter the dynamics of the the telecom market of India forcing company focuses on achieving
industry. Ignoring predatory prices established network operators to its long-term goal of enabling
and making use of consumer- either exit the market or merge home automation in all of India’s
friendly pricing in a price sensitive with other firms. On the other hand, households. Noorul (2017) and
industry played a major role in the consumers have responded Mukherjee (2018) also analyze the
people’s adoption of the new positively to the new entrant disruptions caused by Jio in the
service provider. This has not only and thus the market witnessed telecom sector of India and how
significantly reduced the profits of a significant shift from other that changed the dynamics of the
other telecom sector competitors, operators to Jio by the consumers. industry.
but also forced small network Madhavan and Chirputkar (2020)

31 www.pide.org.pk
Lesson for Pakistan from Jio’s Success

Realization, Opportunity, Boldness: ties of Mukesh Ambani with the the need for a high-speed quality
three words that are key to the Indian government, others argue internet across the country. The
success of Jio in India. Mukesh that the government is responsible government must step forward and
Ambani’s realization that the for acting as a facilitator in all the not only facilitate the private sector
problem faced by his daughter is the markets in the country instead of telecommunication companies
problem of every household in India creating hurdles. to increase internet access in the
formed the basis of the revolution country but also encourage them
that came next. In that, Mukesh Currently, Pakistan employs 3G to expand their service areas.
Ambani’s Reliance Industries and 4G technologies in major
Limited saw the opportunity of parts of the country where internet Internet for all is not just a need
an untapped market of internet access is available. The internet in today’s times, but considering
in India, and especially the 4G quality, however, remains severely the manner in which the post-
standard. While all other well- constrained in major cities even pandemic world is evolving,
established companies focused on today. The 3G and 4G internet Internet is slowly evolving into
3G technology, RIL made the bold facility remains restricted to limited a fundamental right of every
move of investing all its money and regions in the country, while optical individual across the globe. This
energies in establishing a network fiber connections to homes are is the perfect time for Pakistan to
of 4G data transfer in India prior to scarce even in the few major cities take the necessary steps to realize
its launch in 2015. of the country. the dream of Internet for All, else
we might not be able to catch the
While some critics of RIL claim that It is time for Pakistan to learn from train once it has left the station.
this was possible due to the close India’s Jio experience and realize

Lesson for Pakistan from Jio’s Success

A. Gupta, K. Raghav, & P. Dhakad, (2019) “The Effect on the Telecom Industry and Consumers after the
Introduction of Reliance Jio,” International Journal of Engineering and Management Research, vol. 9, no. 3,
pp. 118–137, 2019.

1. Madhavan, P. & Chirputkar, A. (2020) Analysis of the impact of Reliance Jio Infocomm Ltd on Indian
Economy: A Case Study

2. Mukherjee R. (2018) Jio sparks Disruption 2.0: infrastructural imaginaries and platform ecosystems in
‘Digital India.’ Media, Culture & Society. 2019;41(2):175-195. doi:10.1177/0163443718818383

3. N. Haq, (2017) “Impact of Reliance JIO on the Indian telecom industry,” International Journal of Engineering
and Management Research, vol. 7 no. 3, pp. 259-263, 2017.

4. Ben Lutkevich “Fiber to the Home (FTTH)” Jul-2020 [Online]. Available: https://searchnetworking.
techtarget.com/definition/fiber-to-the-home

5. Dan Jones “LTE (Long-Term Evolution)”. Apr-2021 [Online]. Available: https://searchmobilecomputing.

techtarget.com/definition/Long-Term-Evolution-LTE

6. Mallika Rangaiah “The Rise of Jio Amidst Lockdown” 30-Jul-2020 [Online]. Available: https://www.
analyticssteps.com/blogs/rise-reliance-jio-amidst-lockdown

7. Pankaj “Difference between LTE and VoLTE”. 12-Jun-2020 [Online]. Available: https://www.geeksforgeeks.
org/difference-between-lte-and-volte/

8. Rishabh Rathi “Reliance Jio Story - 1st network to provide 4G LTE services” 03-May-2021 [Online]. Available:
https://startuptalky.com/jio-success-story/

9. SignalBoosters.com “LTE vs 4G: What’s the Difference?” 20-Mar-2020 [Online]. Available: https://www.
signalboosters.com/blog/lte-vs-4g-whats-the-difference/

10. Vedica Kant “How Jio Became the Darling of Silicon Valley” 03-Aug-2020 [Online]. Available: https://
marker.medium.com/how-jio-became-the-darling-of-silicon-valley-4ad5aab7949f

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DEVICE IDENTIFICATION
REGISTRATION AND BLOCKING
SYSTEM - PROMOTING LOCAL
HANDSET MANUFACTURING
INDUSTRY
NAUMAN KHALID, PTA

International organizations such as the International for the future, and consumers realized the value of
Telecommunications Union (ITU), GSM Association a legal mobile phone. Resultantly, there has been
(GSMA), Mobile Manufacturers Forum (MMF), a sharp rise in legally imported mobile devices via
Intellectual Property Owners Organization (IPO), formal channels resulting in enhancing the custom
the Organization for Economic Cooperation duties proceeds of mobile phones.
and Development (OECD), the World Customs
Organization (WCO) and other entities have been Recognizing this healthy trend, which owes it to the
working to confront the menace of the grey market implementation of DIRBS, GoP decided to introduce
for mobile devices and its negative impact on the a comprehensive mobile manufacturing policy
mobile ecosystem. to encourage and attract mobile manufacturing
entrepreneurs and companies to establish their units
Pakistan has the distinction of implementing in Pakistan. The Federal Cabinet approved the Policy
the world’s first open-source, full-fledged Device on June 2, 2020. Accordingly, PTA introduced Mobile
Identification, Registration and Blocking System Device Manufacturing (MDM) Regulations 2021 on
(DIRBS). This system has the ability to identify all 28th January, 2021. Till date, a total of 26 companies
the IMEIs latched on Pakistan’s mobile network have applied and been issued MDM Authorization
and categorize them based on their compliant enabling them to manufacture mobile devices in
status. Implementation of DIRBS has resulted in Pakistan. These companies includes both local and
removing illegal devices from the local market. It has international players bringing in renowned brands
also enabled a level playing field for all commercial e.g. Samsung, Nokia, Oppo, Vivo, Alcatel, Techno,
entities to do mobile device business as well as Infinix, QMobile, Vgotel etc. helping in creating
created confidence for consumer on device being new jobs within this filed as well as bring about
purchased by them is a standard device imported via affordability for consumers.
legal channels. Successful implementation of DIRBS
in Pakistan has been internationally recognized by Following figures reflect impact of DIRBS
ITU as a flagship project. implementation on mobile device eco system as well
as mobile device industry:
DIRBS comprises of a comprehensive core analysis
system that is combined with subsystems including Commercial Imports Trends
Device Verification System (DVS), Secure File System,
Device Registration System, Device Pairing System Year wise analysis of commercial category (Imported
and Stolen-Lost Management System. The analysis and Locally Manufactured Devices) shows increase
done through DIRBS allows for the identification in import via formal channels:
and tracking of non-standard/informally imported
mobile devices and generates three lists that mobile
operators implement on their Equipment Identity
Registers (EIRs).

The impact of DIRBS started to surface as the

project came to fruition, the PTA gained a better
understanding of the mobile device landscape;
businesses became aware of commercial models

33 www.pide.org.pk
 Commercial
Calendar Year Import DIRBS Impact Revenue Collected by FBR (FY)
Quantity

2016 21.6 Million Not available

2017 19.8 Million Not available

2018 17.2 Million PRK 22 Billion

Increase by 62%
2019 28.02 Million PKR 54 Billion
from 2018
Increase by 125%
2020 38.06 Million PKR 29.2 Billion (July-Nov 2020)
from 2018

2021 ( upto 28th July) 19.46 Million Not available from FBR

Local Assembly/Manufacturing Trends

DIRBS has created level playing field for all entities, resulting is establishment of local assembly plants. Seeing
the successful development of this industry, PTA issued Mobile Device Manufacturing Regulations (MDM)
2021 which enables companies to obtain Mobile Device Manufacturing Authorization for 10 years.

Devices Locally Assembled by Companies within Pakistan

Local Manufacturing
Calendar Year DIRBS Impact Job Creation (approx)
Quantity

2016 0.29 Million 200

2017 1.72 Million 600

2018 5.2 Million 3000

Increase by 125% from

2019 11.74 Million 8000
2018
2.16 Million 4G Smart
2020 13.08 Million Phones assembled in 600
Pakistan
4.40 Million 4G Smart
2021 (30th June) 11.87 Million Phones Manufactured in 1200
Pakistan

Individual Category Import Trends

Prior to DIRBS, individual import in personal baggage was an untapped area which has now been formalized
as a result fo implementation of DIRBS.

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 Context Remarks

Custom Duties Collected in Indi-

18.26 Billion PKR From 15th Jan 2019- 29th July 2021
vidual Import Category

Other Impacts of DIRBS

a. Issuance of 10 Year Mobile Device e. System has also identified and blocked 26.03
Manufacturing Authorization by PTA to 26 companies Million fake/replica mobile devices
till date, who have setup plants and will manufacture
mobile devices including 4G smart phones. f. DIRBS identified & blocked cloned IMEI,
whereby 880,780 IMEI were cloned/duplicated
b. Availability of locally assembled affordable against 5.28 Million MSISDN.
smart phones to consumers contributing towards Prospects of Export of Mobile Devices
the mission of ‘Digital Pakistan’
Successful implementation of DIRBS and conducive
c. 18.62 Billion PKR custom duties revenue GoP Policies have opened up avenues for export
collected under individual category (15th January 2019 of mobile handsets manufactured in Pakistan. It
to 29th July, 2021). Prior to system implementation, is expected that very soon Pakistan assembled
this was an untapped area and no revenue in this handsets of reputed international brands will be
category was being collected. exported, earning Pakistan much needed foreign
exchange and also putting Pakistan into the mobile
d. PTA has blocked 175 thousand devices IMEI phone exporter list.
reported as stolen through DIRBS.

Annex
Graphical Trends
Commercial + Local Manufactured Import up to 27th July, 2021

35 www.pide.org.pk
 Local Manufactured Devices Trend up to 27th July, 2021

Individual Category Registered Devices 15th Jan, 2019 to 29th July 2021

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37 www.pide.org.pk
THE FUTURE OF MICROFINANCE:
DIGITAL
MARYAM KAMAL
MOBILINK MICROFINANCE BANK LIMITED

The advent of the 21st century sector’s digital transformation, respectively to fulfill their banking
fostered increased internet locally as well as globally, and needs.
connectivity across the globe, increased inclination towards
with internet usage gaining digital/mobile transactions, as the The new five-year National
momentum every successive physical world came to a complete Financial Inclusion Strategy (NFIS)
year; today it has turned into standstill over the last year and a action plan has set new targets to
one of the most powerful and half. In 2020, internet usage in be achieved by 2023, which include
pervasive tools in the science and Pakistan recorded its highest increasing the usage of digital
technological history of mankind. growth to date at a whopping payments to achieve 65 million
The indispensability of the internet 89% in the last quarter of the year. active digital transaction accounts,
as a communication medium for Government institutions and the attain deposits to the GDP ratio of
different utilities received a great State Bank of Pakistan (SBP) have 55%, and serve six million farmers
boost by the recent pandemic played a pivotal role in actively through digital solutions.
which further accelerated the encouraging and facilitating the
technological transformation use of digital communications In 2020, nearly three in ten adults
across various sectors and made and payment channels. The (29%) reported using a full-service
the ‘digital’ phenomenon truly SBP’s latest data shows that financial institution, compared to
omnipresent. The digital era knows the total number of branchless 21% of the same in 2017. Access
no bounds and thus, adapting to banking accounts (also known as to banks increased from 11% of
the new normal, sooner than later, mobile wallets, or m-wallets, for adults in 2017 to 17% in 2020. These
is the need of the hour for nations short) stood at 62.7 million as of circumstances are conducive to
and enterprises across the globe. December 2020, grown from 46.1 interventions from microfinance
million accounts at the end of 2019, institutions through enhanced
With the start of the global signifying a notable growth of 36%. digital financial services which can
pandemic, internet consumption At the end of 2020, the number of sustainably enable over 70% of the
grew exponentially during active m-wallets grew to 59%, with population and include them in
lockdowns as businesses and the preceding year ending at 53%. the financial landscape of Pakistan,
institutions started shifting to and Mobilink Microfinance
online work models in a bid Moreover, the findings from Bank Limited (MMBL) is one of
to continue operations while one of the first digital banking the frontrunners in aiding this
trying to control the spread of experience surveys in Pakistan- financial empowerment of the
COVID-19 in 2020. Internet usage Banking in the Digital Age: masses.
across Pakistan surged by 15% Exploring Pakistan’s Potential,
as soon as the first lockdown conducted by A.F. Ferguson & Co. Moreover, access to fast and
was implemented. After that, we (A member of the PwC Network), affordable internet for all will not
have witnessed a remarkable re-affirm the increasing customer only help empower the citizens but
digital revolution in various fields inclination towards convenience also boost economic productivity
including health, education, & personalized banking made on a national scale. Pakistan is
banking, telecom, and many more. possible through digitization. The among the top five freelancing
survey highlights that 82% of all countries in the world and has
Agility and innovative thinking consumers visit their physical bank generated a significant calculated
define proactive organizations branches once in a few months amount of $0.5 billion entirely
in the modern digital landscape, or only visit them once to open from freelancing. The country is
and the microfinance sector is no their accounts. Additionally, 67% home to 9% of total freelancers
different. The COVID-19 pandemic & 55% of all consumers prefer to across the globe and this number
has accelerated the banking use mobile and internet banking can grow considerably if internet

INTERNET FOR ALL 38

accessibility is enhanced to cater to through joint interventions by the that no one is left behind and the
the entire population of Pakistan. microfinance and telecom sectors masses are sustainably enabled to
– both of which can significantly take charge of their own economic
For developing nations such as empower the masses through prosperity while contributing to
Pakistan, where women constitute enhanced accessibility and the the country’s economic growth.
almost half of the population, provision of seamless digital MMBL’s diverse portfolio of
microfinance institutions have financial solutions – fostering a products and services not only
a major role to play in ensuring sustainably digital Pakistan for all serves the customized needs of
financial inclusion for all, and creating this Pakistan is one of individual clients seeking finance
particularly the underserved ones. the core missions for MMBL. to start their businesses or facilitate
UN Women has found that there is housing constructions but also
a stark contrast between men and As a major contributor to holistic enables Small and Medium
women with access to financial economic growth, financial Enterprises (SMEs)/organizations
institutions and mobile-money- inclusion holds prime importance, by providing exclusive offerings
service providers; the ratio is particularly in countries like such as school loan, commercial
34.6% for men and 7% for women. Pakistan where the majority of the vehicle loan, tractor loan, SME
Moreover, women in Pakistan population lives below the poverty loan, agriculture loan and women-
are 38% less likely than men to line and remains unbanked. As the centric loans such as Bint-e-Hawa,
own a mobile phone and 49% largest digital bank of Pakistan, which is aimed at empowering
less likely to use mobile internet. MMBL is committed to financially women from all fields and walks
These metrics highlight the vast empowering these millions of of life.
untapped potential of Pakistan Pakistanis through its expansive
which can be utilized efficiently digital financial ecosystem, so

39 www.pide.org.pk
FINTECH IN PAKISTAN5
AHMAD FRAZ AND AHSAN UL HAQ

Traditional banks are playing key role in the financial that contribute to FinTech i.e., Artificial Intelligence
industry but the rapid technological development and Machine Learning, Big data and data analytics,
in financial sector has evolved the world economy Robotic process automation and Blockchain. The
to shift to digital channels gradually. Financial following five applications are widely used for
technology (FinTech) is a revolutionary contribution FinTech, Crowdfunding platforms, Mobile payments,
to fasten the pace of financial services. There is Robo-advisors, Insuretech and Regtech.
no doubt that the Internet is the main enabler
for the FinTech industry. Leong and Sung (2018)6 There are four broad categories of users for FinTech:
defines FinTech as “any innovative ideas that 1) B2B for banks and 2) their business clients, and 3)
improve financial service processes by proposing B2C for small businesses and 4) consumers. However,
technology solutions according to different business FinTech developments may also damage financial
situations”. Thus FinTech is the segment of industries well-being by triggering impulsive consumer behav-
consisting of technology-focused companies with ior while interacting with financial technologies and
innovative products and services, traditionally platforms. For example, mobile apps could attract
provided by the financial services industry. To date impulsive and unsophisticated individuals, who lack
there are six FinTech business models: insurance the necessary skills to forecast future preferences.
services, crowdfunding, payment, lending, wealth As such, mobile apps can lead to individuals making
management, and capital markets. Overall FinTech faulty decisions in ‘hot’ states or under sales pres-
developments have impacted financial planning, sure. In such cases, the reduced time between the
financial well-being and economic inequality (Frame, purchase and ultimate consumption of financial ser-
Wall, and White 2019)7. vices is likely to be detrimental to consumer welfare.

Globally, FinTech market is continuously evolving

and expanding with an increasing diversity of
funding sources, scope of business and geographic
spread. Improved financial and other (technological,
political health, environmental) literacies enable
individuals to better engage with artificial
intelligence. The role of financial institutions,
corporations and entrepreneurs is important for the
formation of supply-side solutions which enhance
financial literacy and reduce inequalities across
groups in society. There are four main technologies

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Transatlantic transmission
cable, SWIFT, ATMs... Data Technologies

FinTech FinTech FinTech

1.0 2.0 3.0
Internet,
Internet of Things

Table 1: The Evolution Of Fintech Industry

1860 The Pantelegraph was Invented

1880 Using Charge Plates and Charge Coins For Credit

1918 -1970 The Invention of Fedwire

1919 An Important Book Was Published Linking Finance and Technology

1950 Diner’S Club Introduced a Credit Card

1958 American Express Introduced Their Credit Card

1960 Quotron Allowed Stock Market Quotes to be Shown on a Screen

1966 Telegraph Replaced by the Telex Network

1967 First ATM Installed By Barclays Bank

1971 NASDAQ Established

1982 -1983 Evolution of E – Trade and Online Banking

2009 Release of Bitcoin

2011 Google Pay Send Developed ( Google Wallet )

2017 “Smile To Pay‘‘ Services Introduced by Alibaba

Source: www.getsmarter.com

41 www.pide.org.pk
Now when we consider Pakistan; being the world’s e-commerce market facilitating digital payments
sixth most populated country, is still a cash-based and an overall financial system having the absorption
economy with 85 percent of its population being capacity for innovation.
financially excluded. Along with that, high banking
infrastructure costs act as a barrier to the diffusion According to Pakistan Telecommunication Authority,
of financial services beyond a small fraction of the a whopping 101 million people use internet in
population. At present, only a few FinTechs operate Pakistan, 46% has access to broadband services and
in the country, and those are primarily in the 85% of Pakistan’s population has mobile connections
developed cities of Lahore, Karachi, and Islamabad. that account to 183 million mobile subscriptions, a
However, Pakistan possesses the potential to be high penetration in the population. The Economist’s
an attractive market for FinTechs growth, owing to Global Microscope 2018 report ranked Pakistan at 21st
the increasing youth population, disruptive internet place out of 55 countries surveyed for an enabling
and smartphone penetration, consumer preference regulatory environment for financial inclusion and
for mobile phones and social media, a booming rapid growth of mobile financial transactions.

Source: https://www.tezfinancialservices.pk/tfs/FinTech.php

FinTech industry in Pakistan faces several hurdles uses of FinTech and related technologies:
including a lack of larger organization’s support,
unfavorable regulatory environment, etc. The major • State Bank of Pakistan
challenges are the unwelcoming attitudes of big • Securities Exchange Commission of Pakistan
players, complex regulations, lack of funding from • Pakistan Telecommunications Authority
venture capital firms, no data security mechanisms, • National Database and Registration Authority
difficult to get registration of your businesses, • Ministry of Information Technology and
no protection of intellectual property, and lack of Telecommunications
funding opportunities for follow up capital and lack • Competition Commission of Pakistan (CCP)
of retentions of talent staff.
All of these could act as platforms for carefully
From the prudential regulations perspective, financial controlled and regulated FinTech-led growth.
services are among the most heavily regulated Nonetheless, stringent regulations should not be
sectors in the world. Not surprisingly, regulation viewed only as a support, as it might also become a
has emerged as the number one concern among threat for the emerging FinTechs industry (Sludge),
governments as FinTechs companies take off. On which is still in its infancy stage. As technology
the positive side regulatory framework for financial is integrated into financial services processes,
services is fairly strong in Pakistan, with laws such as regulatory problems for such companies have
Payment System Operators (PSOs), Payment Service multiplied. In some instances, the problems are a
Providers (PSPs) and Branchless Banking regulations function of technology itself. In others, they are a
issued by the State Bank of Pakistan (SBP). There are reflection of the tech industry’s impatience to disrupt
a number of regulators who are most proximate to finance. For example, automation of processes
FinTechs operating in Pakistan as well as enabling and digitization of data makes FinTech systems

INTERNET FOR ALL 42

vulnerable to attacks from hackers. The most each passing day. In the context of FinTech Pakistan
important questions for consumers in such cases will has a huge potential of growth. However, there is
pertain to the responsibility for such attacks as well a need to provide internet access to everyone in
as misuse of personal information and important Pakistan, which will reduce the cost of branch less
financial data. banking for banking transactions. PIDE growth
On the positive side poor financial inclusion, along commission report suggested that “Currently, most
with accelerating mobile phone and internet E-commerce is relying on Cash on Delivery. The
penetration, evolving consumer needs in favor real breakthrough will come when online payment
of digitization and online commerce, biometric becomes easier”8. Digital payment infrastructure
verification of mobile SIMs and a supportive and no cash distribution infrastructure will lead the
regulatory environment all serve as opportunities for transition to the new age of financial products and
FinTechs to step in and provide financial products services. It is the need of the hour to not only invest
at low costs. The rapid growth in the mobile phone and support the local upcoming FinTechs in the
users in Pakistan is considered a big opportunity country but to create an environment conducive to
to technology based businesses. The use of smart the growth of FinTechs in Pakistan.
phones for banking transactions are growing with

5 Special thanks to Dr. Mahmood Khalid for suggestions and improvements

6 Leong, K., & Sung, A. (2018). FinTech (Financial Technology): what is it and how to use technologies to create business
value in fintech way?. International Journal of Innovation, Management and Technology, 9(2), 74-78.

7 Frame, W. S., L. Wall, and L. J. White. 2019. “Technological Change and Financial Innovation in Banking: Some Implica-
tions for FinTech.” In Oxford Handbook of Banking, 3rd ed., edited by A. Berger, P. Molyneux, and J. O. S. Wilson. 262–284.
Oxford: Oxford University Press.

43 www.pide.org.pk
WHY SHOULD WE NOT RUSH FOR 5G?
AYAZ AHMED, HENNA AHSAN
The prevailing Covid-19 situation has revealed how limits and again as per PTA stats we have achieved
internet access has become a basic necessity of our 84% of the cellular Teledensity. Therefore, two prime
life. As per stats available on PTA website, there are and immediate goals of the government and the
100 Million 3G/4G subscribers in the country and 103 concerned institutions are proposed: to achieve
Million broadband subscribers. These are quite en- hundred percent Teledensity and to ensure hundred
couraging numbers but a lot more needs to be done percent 3G/4G coverage on all installed cell sites. Mo-
to extend internet coverage to all especially to un- bile operators do have their own motives to immedi-
served and underserved and most deprived areas of ately catch on to latest developing technologies but
the country. it is the regulators and government’s role to make
sure that things are being implemented in the best
All mobile operators working in the country have interest of both mobile operators and the people of
rolled out their network infrastructure to maximum Pakistan.

Challenges Regarding 5G:

Indeed 5G is the technology to which we have to spectrum, deployment of small cells due to higher
switch ultimately in future but we shouldn’t rush for frequency bands against 5G will be requiring massive
that as currently even the developed countries are deployment of new cell sites and last but not least
not fully ready for this and are facing great challenges smooth and easy availability of cheap 5G capable
regarding its deployment. To mention a few there handsets in the country. So there is a long road to
has to be massive changes in current allocated travel to reach 5G for a country like Pakistan.

Way Forward:

Therefore instead of joining the race with developed analyze subscribers data we see there only 100
countries to achieve 5G deployment goal our all million 3G/4G subscribers against 184 million total
energies should be focused on taking leverage of subscribers i.e. 54%. So a considerable amount of
already deployed telecom infrastructure to extend high intensity effort is needed in order to tap into this
internet reach to general populace. We have 46,950 high potential of remaining 84 million subscribers
cell sites in the country collectively installed by all to bring them into the mainstream and help them
CMOs and out of these 3G is deployed on about access the benefits of high speed internet. This
42000 sites i.e. 3G is deployed on almost 90% sites will enable the government to realize its dream of
which is quite a good number. However when we internet for all in minimum possible time.

Policy Recommendations:

There are certain actions and initiatives which need • 3G was launched in Pakistan in year 2014 how-
to be taken by the government to make above all ever in AJ&K and Gilgit Baltistan it remained
happen in minimum possible time. unavailable till 2020. So government needs to
• Government needs to lower duties on the import remove hurdles in 3G spectrum allocation to all
of smart phones and also new policies and ini- operators in AJ&K and Gilgit Baltistan to have a
tiatives need to be introduced to encourage local healthy competition and speedy rollout of 3G/4G
manufacturing and assembling of these smart services.
phones as it could significantly lower the prices. • We have more than 85000 km of optical fiber
• Facilitating and expediting existing and new fi- network for national connectivity so we must
ber deployments as these are inevitable to carry take advantage of this huge network by offering
high data traffics associated with 3G/4G. new licenses to the operators in FTTH (Fiber to
• Extending CMOs presence to remote and un- the Home) and GPON (Gigabit Passive Optical
served areas through forums like universal Ser- Network) domains.
vice Fund USF and other community support • And last but not least expediting work on dams
programs. and other under progress power generation
• Persuading mobile operators to have lower 3G/4G projects so CMOs have lower maintenance cost
tariffs in poor and deprived areas. on cell sites.

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INTERNET FOR ALL –
REALITY OR PIPE DREAM?
OBAID KHAN
Around the globe, conventional jobs are being Egypt, and Bangladesh (Anwar & Qayyum, 2021).
replaced by technology-related jobs. As most of these This is partly due to healthy competition between
jobs employ cutting-edge technologies such as AI, internet providers. However, the devices needed to
3-D printing, drones, big data and blockchain etc. access internet services are not affordable by most
they rely heavily on the provision of reliable internet people as nearly 50% of the internet users use 2G
access. The telecommunications sector, arguably technology via relatively cheap mobile phones
the most dependent sector on the internet, has (Hasan, 2021). Furthermore, the utilisation of optical
the potential of creating an enabling environment fibre cables by mobile towers in Pakistan continues
which gives people access to health, education, to be an issue. Approximately only 10% of mobile
agritech, e-commerce, fintech, etc., creating jobs in towers in Pakistan utilise optical fibre cables, whereas
the process. The scope of the Pakistani economy to in Thailand, Malaysia, India, and Bangladesh, 90%,
create such jobs will be limited if the country fails 40%, 30% and 27% of mobile towers utilise optical
to provide widespread and reliable internet access, fibre cables, respectively (Anwar & Qayyum, 2021).
in terms of speed and quality, to its people. In this
essay, I will highlight some of the challenges faced Spectrum, the medium for transmitting internet
by Pakistan in providing internet access to its citizens signals between two points, is released under the
as well as briefly suggest possible solutions to these authorisation of the Government of Pakistan through
problems. auction. Unlike other countries, the Government of
Pakistan hoards spectrum to create artificial scarcity
Although the internet was perceived to be a social to inflate prices and gain higher upfront fees.
equaliser, providing a levelling field to everyone Spectrum released in Pakistan is one third that of
through equal access to opportunities, in Pakistan, Bangladesh and India, and one fourth that of Turkey
it has worsened the class divide. While the rich (Hasan, 2021). No spectrum has been released after
continue to enjoy facilities such as the provision of 2014 in Pakistan (Anwar & Qayyum, 2021). This
internet access, according to the IMF, 89% of the drip-feed release of spectrum can be explained by
population in Pakistan cannot afford internet (Jamal, the Government’s preference for short-term budget
2018). Moreover, by January 2021, there were only balancing rather than providing internet access to
61.34 million internet users in Pakistan and the all as a basic human right (Hina, 2021). This strategy
internet penetration rate stood at an abysmal 27.5% in the long-run is less beneficial for tax collection
(Kemp, 2021). These statistics have become even purposes as it hampers the growth of sectors
more problematic during the COVID-19 pandemic dependent on the availability of the internet. A case
where a shift to remote work and learning has been in point is China which has waived 5G spectrum fees
accelerated with businesses and organisations (KPMG, 2019).
vaulting forward 5 years in terms of technology
adoption (Baig, Jenkins, Lamarre & McCarthy, The average revenue per user of spectrum in
2020). However, in Pakistan, this shift to online Pakistan is around 1 USD whereas in the USA, it is
learning was deemed unfeasible due to a dearth over 30 USD (Hasan, 2021). Since internet providers
of internet access in poor regions of the country. get a relatively low return in Pakistan, investment is
This can have a detrimental impact on the future deterred in this sector. In addition to spectrum fee,
economic prospects of a country where 64% of the additional license fee needs to be paid to relevant
total population is under 29 (Farhan, 2021). This lack government authorities which when accumulated,
of access to internet to the wider population in the form a significant part of capital expenditure
country can be partly attributed to internet being required by internet providers when undertaking
perceived as a luxury rather than a necessity. This the expansion of their services. As a result, internet
perception is further augmented by the imposition providers are forced to face a trade-off between
of taxes; the Government of Pakistan imposes a 32% improving the quality of internet access or purchasing
tax on internet users, rendering it unaffordable for spectrum and increasing internet penetration. To
most people (Hasan, 2021). avoid this, a pay-as-you-go model could be utilised
as distributing spectrum without upfront license fee
Pakistan is significantly cheaper in terms of a could lead to a potential faster rollout.
gigabyte of data availability compared to India,

45 www.pide.org.pk
In addition to the Government of Pakistan’s short- could emulate the UK and its drive for improving the
termism, internet service providers also need to provision of internet facilities. In the UK, as part of
become more operationally efficient. Historically, ‘Project Gigabit’, the Government plans to invest in
in Pakistan, internet providers have treated internet-related infrastructure and provide a subsidy
their towers as their competitive advantage and to internet providers with the goal of delivering
have been reluctant on sharing them with their gigabit-speed broadband to 85% households by
competitors. Currently, 48,000 towers in Pakistan 2025 (Cellan-Jones, 2021). Similar measures in
are independently owned by the 4 largest internet Pakistan, supervised by top-level management,
providers (Siddiqui, 2020). In the USA, however, could help boost economic growth. Although the role
American Tower manages over 42,000 common of the State should not be understated, the private
transmission towers, resulting in greater internet sector too has a role to play in providing internet
coverage (American Tower, 2021). Given their access to people. In India in 2015, Mukesh Ambani
advantages to both the firms and the public, launched Reliance Jio which connected over 80% of
common transmission towers are now being set up the country and provided them with internet access
in Pakistan. Unfortunately, the same cannot be said (Riley & Arora, 2016).
about optical fibre cables. These assets are currently
not shared between service providers in the country To conclude, the Government of Pakistan needs
and the consolidation of telecom companies could to avoid short-termism and utilise a pay-as-you-
result in these firms improving their margins through go policy for spectrum which will encourage the
economies of scale as well as building a robust provision of internet services to a wider audience,
infrastructure to provide the public with improved especially to those in remote areas. Furthermore, it
internet access. One way of pushing firms to be more needs to invest directly in infrastructure. The private
efficient would be through encouraging disruptive sector will also play an important role in improving
competition in the sector such as SpaceX’s Starlink internet access such as seen in the case of Reliance
which will provide low-cost internet to remote areas Jio. A combination of these factors can result in
around the world (The Express Tribune, 2021). greater tax revenue for the Government as well as
facilitate economic growth by creating additional
By focusing on expanding 4G services and ignoring jobs and prevent Pakistan from playing technological
5G technology, Pakistan risks lagging behind other catch-up in the coming years.
countries in the years to come. To circumvent this, it

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youth? The Express Tribune, viewed 23 July 2021, https:// tribune.com.pk/story/2274806/pakistan-boosts-work-on-
tribune.com.pk/story/2309314/e-commerce-economic- transmission-towers.
solution-for-our-youth.
The Express Tribune 2021, Jazz CEO sees Elon
Hasan, Z 2021, Internet for all, Webinar Brief: 47 2021, Musk’s Starlink as healthy competition, The Express
PIDE, viewed 17 July 2021, https://pide.org.pk/pdf/brief/ Tribune, viewed 23 July 2021, https://tribune.com.pk/
Internet-for-All-Webinar-Brief-47.pdf. story/2303957/jazz-ceo-sees-elon-musks-starlink-as-
healthy-competition.
Hina, H 2021, Can We Have Internet For All? PIDE, viewed
15 July 2021, https://pide.org.pk/blog/can-we-have-
internet-for-all/.

INTERNET FOR ALL 46

INTERNET AND
ECONOMIC GROWTH
SHAHID MAHMOOD

In 2017, Facebook’s founder Mark Muhleisen (2018) terms such But does the availability of the
Zuckerberg published a manifesto technology as the ‘one that has internet automatically transform
about the future, where he argued the power to continually transform into an increase in per capita and
that connecting everyone to the itself, progressively branching out aggregate income? Whatever
internet is necessary for building and boosting productivity across transformation that has taken
an informed community. His all sectors and industries’. The place, has it happened by accident
thoughts echo the thoughts of changes wrought by them tend or by design?
many others who have argued that to bring enormous long-term
access to the internet is necessary benefits but are highly disruptive As Muhleisen points out, many
for solving the most pressing too. Historically, there are only benefits of general-purpose
socio-economic problems of our three known examples of such technologies like the internet
times. phenomenon, namely the steam come not merely by adopting
engine, the electricity generator, it, but by adapting to it. He gives
Originally initiated as a and the printing press. the example of ridesharing firm
DARPA project to improve the Uber that uses digital technology
communication system for The change that this technology to deliver better services. Similar
American forces, the internet is has wrought has been tremendous sentiments have been shared by
now an integral part of our lives. in its magnitude. The examples are other observers of note. One of
From landline phones that could too many to cite in one place or one the most famous quotes related to
take substantial time to connect article. A 2017 report by McKinsey technologies like computers and
to the net, it’s now just a click away. calculated that about 50 million internet comes from the famous
Still, a substantial portion of people jobs in the US would be transformed Nobel-Prize winning economist,
around the globe don’t have completely due to digitization. Robert Solow. In 1987, when
either access to it, or the access ‘Smartphone’ was unheard of at personal computers and internet
is uneven, slow, and bothersome. the turn of the 21st century. Now, started assuming cult proportion
Realizing the importance of access an estimated 5 billion people and the US’s economic growth
to the internet, substantial sums have them! More importantly, the began to be put down to this
of money have been invested in pace of transformation continues technology, he famously quipped
projects all around the world to to accelerate. From quantum that ‘computer age is everywhere,
expand internet’s access. For e-g, communications to 3D printing, except in productivity statistics.
a new initiative labeled ‘LOON’ the world is in a constant flux that This became known as the ‘Solow
has come with an innovative idea has tremendous implications for Paradox’. Simply put, Solow
of expanding internet’s access the economy. Unlike the previous opined that the mere presence
through stratospheric balloons. global pandemics (like the of computers and internet is
Since the height of traditional Spanish Influenza of 1918) that no guarantee of income and
antennas is limited and it might completely upended the working productivity growth.
not be able to set them up in many of economies, a substantial
areas due to various reasons (like amount of COVID-19s economic In the context of the above-stated,
security) , balloons can facilitate devastation has been spared due what can we state about the
access in such areas without the to the availability of the internet process of internet and economic
need for towers. which has allowed work-from- growth? Specifically, does it hold
home, thus keeping the engine any lessons for Pakistan? We
What kind of effect can this critical of the global economy running can take a simple example to
technology have on economic (albeit at a slower pace). Thus, understand where we stand and
growth? To contemplate the the availability of the internet how the process can benefit the
question, we have to understand has become critical in today’s economy and society. Pakistani
the nature of such technologies. economy, a fact that has led Dr. government started adopting
Nadeem Haq, VC PIDE, to call for computers for public sector
It is what experts would label as internet to be treated as a right! organizations in the early 90s. This
‘general-purpose technology’. was complemented by training in

47 www.pide.org.pk
various programs (like Microsoft This brings us to what Muhleisen optimizing upon it!
Office package). This should, emphasized: it’s not just about Thus, for countries like Pakistan,
ideally, have led to a substantial adopting, but more importantly, it might not just be enough to
lessening of paper-based work. But it’s about adapting! Those have universal access, but to have
files and papers are still a massive who have adapted well and a plan for optimizing its presence.
part of government administrative tailored their system as per the Otherwise, violent organizations
business, with the expense on technological trends wrought like TTP have also benefited
them increasing since that time. by the internet (private or public tremendously from the presence
Similarly, the digitization of land sector), they’ve realized plentiful of the internet, helping them
records in Punjab should have bounty. Amazon, Facebook, effectively spread propaganda.
led to an end to the patwari’s role. AliBaba, and eBay are just a few
Yet, they continue to be as strong examples of how the availability of For the moment, there is no such
and influential as they have ever a disruptive, universal technology plan and Pakistan is a bit of a
been. On the opposite side of the brought in benefits worth billions Solow Paradox!
spectrum, we have the example of of dollars. Of course, even more
NCOC using technology effectively critical was the fact that people
to implement smart lockdowns! like Jeff Bezos had a plan about

References

1. ‘Expanding internet
connectivity with stratospheric
balloons’ (2021). X-Company

2. Haq, Nadeem (2021). Internet

for all. The NEWS

3. Muhleisen, Martin (2018). The

Long and Short of the Digital
Revolution. Finance and
Development, Vol. 55, No. 2,
IMF

4. ‘Technology, jobs and the

future of work’ (2017). McKinsey
Global Institute

9 Recently, Pakistan army soldiers as well as laborers lost their lives in Kurram district (formerly Kurram agency) where the laborers were
trying to erect a mobile and internet tower.

INTERNET FOR ALL 48

INTERNET AND THE RIGHT
TO INFORMATION
RAJA RAFIULLAH

During the first half of the 21st Century, we each other and have access to information at levels
have witnessed proliferation of ever-evolving unthinkable throughout most of past human history.
information and communication technologies at an This interconnectedness and access to information,
unprecedented rate. The result has been that people however, is far from being equal from one person to
around the world are more interconnected with another.

Internet Accessibility in Pakistan

If we were to start by looking within our own country, move any further, it is important to point out that
only about one-third of households have access this non-availability of internet is not fully reflective
to the internet according to the latest Pakistan of the level of connectedness within the population.
Social and Living Measurements (PSLM) survey The same PSLM 2019-20 survey reports that 93
(see figure 1). percent of households have access to either a mobile
or a smartphone, suggesting that the population
The situation of internet accessibility is bleaker is at least up to date with the basics of modern
in rural areas as compared to urban areas as only information and communication technology and
23 percent of rural households (See Figure 2) its usage. However, when it comes to computer and
The situation regarding the limited accessibility other related devices’ ownership only 12 percent of
of internet to an overwhelming majority of the households report that they have access to either a
population is a rather alarming fact. But before we computer, tablet or laptop.
Fig 1: Fig 2:
Internet Accessibility in Pakistan (% of Households) Internet Accessibility in Pakistan (% of Households)

Have Access
33%

Have Access
33%

Source: PSLM 2019-20

49 www.pide.org.pk
How Pakistan Ranks Comparatively?

The state of internet accessibility in Pakistan is well Pakistan is ranked 90th on the list whereas India is
below international standards and considerably lower in the 49th spot. Furthermore, scores for Pakistan
than other regional countries. For instance, Pakistan’s are significantly lower than for India for each of the
neighboring country India is ranked 41 places higher Index’s sub-categories. (See Figure 3).
on The Economist’s The Inclusive Internet Index.

Internet and the Right to Information

It is about time we realize not only the economic breadth of internet access along with its affordability
losses that we are incurring as a country by depriving can be increased in the country.
the majority of the population of access to proper and
affordable internet, but also stress the point that in Every person innately has a right to access public
this day and age, access to adequate and affordable information and we should not deprive a large
internet is something that falls under the ambit of section of our population of this basic right. Access
essential public services. It is the responsibility of the to adequate and affordable internet plays an integral
state to make sure that the relevant infrastructure and part with regard to access to public information in
trade policies are put in place that ensures adequate this day and age. By connecting our masses with
and affordable internet access to its citizens. This does the global information base through internet we can
not mean that the state has to ultimately provide this effectively reap the social and economic benefits
service itself, but rather that through effective public that come with it.
policies and private sector development the length &
Fig 3:
Inclusive Internet Index (2021)

Overall 73.4
56.5

Relevance 83.3
57.3

Affordability 85.7
67.0

Availability 59.0
47.0

73.9
Readiness 61.4

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

Source: PSLM 2019-20

Internet of things: The new economy in making

“If we had computers that knew everything there was of computing devices embedded in everyday
to know about things—using data they gathered objects, enabling them to send and receive data
without any help from us—we would be able to track via the Internet. These devices range from ordinary
and count everything, and greatly reduce waste, household objects to sophisticated industrial tools.
loss and cost. We would know when things needed With more than 10 billion connected IoT devices
replacing, repairing or recalling, and whether they today, experts are expecting this number to grow by
were fresh or past their best.” 22 billion in 2025. It has spawned a new economy all
together.
“We need to empower computers with their own
means of gathering information, so they can see, The IoT works in five simple steps: 1) storage devices
hear and smell the world for themselves, in all its collect data for future use 2) remote devices such as
random glory.” smartphone control IoT 3) the internet will provide the
platform for connectivity 4) the router and gateway
Kevin Ashton wrote a quote in 2009 for the RFID will allow devices to connect via wifi 5) thousands of
journal and this will help us in understanding IoT from devices will connect with internet and/or each other.
its core. Internet of things (IoT) is the interconnection The IoT concept is already in use such as Smart Mirror,

INTERNET FOR ALL 50

Smart Money Transfer, Smart Irrigation, Smart Doors,
Air monitoring system, Smart alarm clock, Weather In Pakistan, international and national computer
reporting, Smart Wheelchair, and Smart Street Light technology firms are in the initial stages of developing
system. Innovative services using IoT technology. IoT concept
is using in measuring infrastructure with automatic
There is a general view around the globe that 5G meter readings in real time, Communications
has been specifically designed for IoT use. 5G will smart devices / sensors / actuators, smart farming,
be much quicker than first predicted. According healthcare solutions, Smart grid and connected
to ETSI, 5G will address the following IoT segments: agriculture. However, a formal and comprehensive
the Massive Machine Type of Communication (MTC) regulatory framework is needed for elaborating
or Massive IoT, & Ultra-Reliability and Low latency IoT Ecosystem. PTA Pakistan Telecommunication
Communication (URLLC) or Critical IoT. Examples of Authority has created an Industry working group.
Massive IoT include Smart Cities, Smart Homes, and The purpose of this functioning group is mainly to a)
Buildings, Critical IoT includes, Gigabytes in Second, Foresee the IoT future expansion in Pakistan, and b)
Augmented reality, 3D video, UHD Scenes, Work and To evaluate and recommend the possible regulatory
Play in the cloud, Industry Automation, Self-Driving options that PTA and the Government of Pakistan
Cars, and Mission-critical applications like e-health may adopt to handle the challenges and avail the
etc. opportunities offered by IoT services/applications.

Many IoT devices run wirelessly, while others are resulting in an increase in bandwidth. Consumers
connected. Most IoT devices use very little bandwidth, believe bandwidth is available at the fastest speed,
but the sheer amount of devices going online even as demand for IoT increases. Companies focus
means that more bandwidth will be required. As IoT on bandwidth and scalable solutions because
progresses, it will be important to make sure that the solution will be important as the need arises.
the network can accommodate these changes. The Reliability is important, self-healing fiber optic
accumulation and transmission volume of IoT devices networks automatically detects and redirects in the
will increase as the technology continues to evolve, event of a fiber cut or other interruption.

History of IoT
Courtesy: https://simplycoding.in/internet-of-things/

51 www.pide.org.pk
INTERNET IN PAKISTAN
HANIA AFZAL

Pakistan currently has 184 million cellular subscribers

and still growing. Last year in 2018-19 there were According to the policy directive for the auction of
only 168 million subscribers. After the COVID-19 the NGMS spectrum in AJK and GB:
potential number of subscribers have increased
significantly. It is because of the certain incentives a. A transparent, competitive process shall be
provided by the cellular companies amidst the formulated by the PTA for auctioning 2x16 MHz
pandemic. There are five major companies currently spectrum in the 1800 MHz band and 2x30 MHz
operating in Pakistan namely Zong, Jazz, Telenor, spectrum in the 2100 MHz as made available by
Ufone, and Warid. These companies provided their the Frequency Allocation Board.
services at subsidized rates when Pakistan started
transforming from a physical mode of work to b. The base price for 2x1 MHz (1 MHz paired) spectrum
digitalization or work from home due to the COVID19 in both I800 and 2100 MHz bands is $0.87 million,
attack in early March 2020. respectively.

Many challenges were faced by the Pakistan c. Additionally, the 2x10 MHz spectrum earmarked
Telecommunication Authority for providing access by FAB for SCO in both 1800 and 2100 MHz
to internet to its citizens. This issue arose because bands is approved for assignment to Special
internet access varies from province to province in Communication Organization.
Pakistan. For instance, in the province of Balochistan,
out of 32 districts, nine districts lack the facility of d. the spectrum assignment will be “Technology
internet, similarly, only 5% of the population residing Neutral” and usable for all existing and upcoming
in the province of KPK has access to broadband advanced generations technologies within the
internet. To cater for this issue, the government along applicable policy framework of the government
with the World Bank funding launched a tele-school of Pakistan.
channel for distance learning of students of the
country. Moreover, the government is also currently e. payment terms shall be a minimum of 50 percent
working on the project of launching a radio school upfront payment within one month of auction
that will help the students of marginalized areas. date while the remaining is to be paid in 10 equal
installments in 10 years.
To digitalize the whole country, for the first time in
the history of the country, Spectrum Auction has
been approved for Gilgit Baltistan and Azad Jammu &
Kashmir. Under the Digital Vision of Pakistan, no region
in Pakistan will remain deprived of digitalization.
Broadband Internet and mobile services will improve
in GB after the auction of additional spectrum in
Pakistan. As part of the program software technology
parks will be soon inaugurated at Skardu, Baltistan,
and Hunza. Currently, Pakistan has fourth-generation
(4G) facility available but after the new spectrum
auction, fifth-generation(5G) services will be available
to the people. Under this new spectrum policy for
commercial auction of next-generation internet and
mobile phones, the internet facility will improve in all
the marginalized areas.

INTERNET FOR ALL 52

THE DIGITAL DIVIDE
SADDAM HUSSEIN

Many academics believe that if technology is different in different Certain crucial factors behind this
internet is used and acquired to regions. This uneven distribution digital gap include a high tax on
its full potential it can create a of internet across globe causes internet services, mediocre quality
large-scale social and economic disparities in terms of education, of internet, restrictions grounded
change, both at the national as labor, technology, opportunities in culture and societal norms.
well as global level. With internet, etc. Western democratic regimes Increased taxes make it difficult
access opportunities in terms are more open to the idea of to afford Wi-Fi or 4G network;
of communication, education, internet accessibility as compared whereas, companies are also not
and human relationships can to other governance models. In able to afford better ICT services
be generated easily, which can western democracies, people due to poor planning and policy
become challenging otherwise. have far greater freedom to of the government. Even if the
However, the proliferation of access information and there internet is present, people are not
internet is not an easy task and is almost no restriction on the educated or qualified enough to
is subjected to a range of issues, use of the internet. On the other operate it. Rural women are often
especially in the developing world. hand, many developing countries restricted from using internet,
One of such issues is the digital and authoritarian regimes have but it has more to do with the
divide. limited internet access - one of patriarchal customs that are at
the key reasons behind the huge play in Pakistan.
Digital divide explains that there digital gap in these countries. It is
is a restriction when it comes to imperative to tackle this internet It was thought that the digital
the proliferation of information disparity, so that the issue of digital divide could be tackled by the
among people which creates the divide can be mitigated sooner propagation of technology, and it
social and economic gap. Most than later. is temporary, however, this is not
people think that the digital divide the case. Certain factors that have
is merely the lack of internet Moreover, with the advent of influenced the use of the internet
access, but in reality, it also telecommunication services, the are cultural barriers, regulation,
includes issues like people who proliferation of information has and censorship.
have internet connection but lack become an easier task. Owing to
the skills and devices to operate it. the huge demand for the internet Furthermore, education plays a
It also comprises how information and computers, many countries key role when it comes to digital
is collected and if the people who are working to improve their ICT divide. People who are educated
gather certain information from (Information and Communications are going to use the internet
the internet can interpret it or not. Technology) - based programs. and internet devices more as
Many academics believe that compared to people who do not
The digital divide is a global augmenting ICT is very critical as it have proper access to education.
phenomenon. The use of the helps to remove barriers in society This points out to the lack of
internet and its restriction is and promotes social connectivity digital skills which are required
different for different countries, and inclusiveness. In Pakistan, for for proper usage of internet. Apart
based on their legal and political the last five years, government has from education, income also plays
environment. The global disparities been trying to integrate ICT across a significant role in digital divide.
in terms of digital divide are many sectors of the economy. Households with more income are
primarily between developed and However, the number of internet likely to purchase better internet
developing countries. The internet users is still very less as compared and internet devices as compared
service all around the world are to other countries. One of the to households with lower income.
expanding in an exceedingly main reasons behind this is the In rural areas in general people
swift manner, but most of the limited access to internet services have lower income and thus they
developing countries have a in certain areas of Pakistan. This are not much inclined to buy
different story to tell. It is pertinent creates a digital divide, creating internet. This can also be linked
to note that digital divide across social inequalities which can to the investments made by
the globe does not necessarily surge with time if sufficient steps telecommunication companies;
mean the non-availability of the for internet provision across the such companies are more hesitant
internet, it also means that the country are not taken well in time. to make costly investments in

53 www.pide.org.pk
less developed areas, causing the during COVID-19 pandemic. Most limited access of internet hinders
quality of internet to deteriorate in people found it difficult to work the opportunities for positive
such areas, which further causes from home pertaining to internet spill-over effects. This is causing
digital divide. Apart from these usage as well as connection issues. divergence among the rich and
factors gender, location, race, Students and teachers living in poor.
political and cultural attitudes rural areas in Pakistan were unable
have a significant impact on to attend and deliver lectures due In a crux, digital divide in Pakistan
digital divide. to poor internet connections and would eventually result in
lack of skills required to operate economic stagnation. Internet is
The internet plays a key role in the internet. Similarly, businesses were particularly vital for productivity,
lives of people; it helps in creating also unable to operate optimally. development, and innovation
opportunities for different people. while minimizing transaction
Digital divide is a form of self- In parallel, digital divide is having cost. Hence, it is vital for the
deprivation which can have a negative impact on worker’s government to partner with the
adverse effects on any society. economy in Pakistan, people are private sector and facilitate the
In Pakistan, the consequences unable to find quality jobs due to provision of affordable internet
of digital divide were noticed a lack of digital skills. In Pakistan, across the country.

Source: https://medium.com/@ShwetaBarupal/digital-divide-a-critical-analysis-7156333237f7

INTERNET FOR ALL 54

INTERNET FOR ALL:
A RESEARCH PERSPECTIVE
ANJEELA KHURRAM, FARHAT MEHMOOD

Admittedly, the internet’s use Learning Space Tool Kit for among researchers, which would
has its marks in almost all walks focus groups, Sony ICD ux560 for otherwise have been not plausible.
of life, transforming and evolving interviews, Quetext for case studies, The attributes of internet use like
various domains. Scholarly Checkli and Forgett for checklists the ease of use, efficiency, cost-
research is not an exception. etc. Similarly, Amazon Mechanical effectiveness and quick dispersion
Extensive use of internet across Turk (MTurk)—a crowdsourcing of information have allured
disciplinary boundaries has marketplace—also offers paid data more and more researchers to
transformed the research domain collection services to researchers adopt this mode. Their reliance
in terms of its reach and volume. to collect survey data across global. on internet-mediated research
From information collection to In the same vein, it is interesting has to get momentum. On
disseminating the outcomes of to mention the availability of realizing a dire need to deal
their research, researchers rely various invaluable data analysis with the methodological issues
greatly on the use of internet. tools on internet for descriptive, like the nature, confidentiality
Presently, internet seems an arena inferential, diagnostic, predictive and consent of the participants,
with a plethora of overwhelming and statistical analyses, and data modes of virtual communication,
information on almost all subjects visualization. Like, SAS, Teradata, scholars have set some guidelines
to meet the information needs E-Programming, Python, SQL, for internet mediated research.
of the masses. This accelerates Matlab, RapidMiner, Qlik, Intesoft, Notably, the authorized bodies
the reliance of researchers on Oracle Business Intelligence, like the Association of Internet
internet to explore research sites Sisense to name a few. While, Researchers (AoIR) and
like Science.gov, Google Books, plenty of software like AMOS, Institutional Review Boards (IRB’s)
BASE (Bielefeld Academic Search SPSS, JMP, STATA, R, E-Views, have complemented their extant
Engine), Google scholars, Research NVivo, ATLAS.ti, XLSTAT, Graphpad, guidelines realizing the increasing
gate, Infotopia, Ebsco, Lycos, CAT, MAXQDA and many more use of internet during COVID-19
Altavista, Web Crawler, Infoseek have facilitated qualitative and for research purposes.
etc. Institutional e-libraries are also quantitative data analyses. Once
serving the purpose of gateway published, research findings can Recommendations
to virtual knowledge banks. easily get diffused online, assuring
Information gathered online more virtual visibility. Internet In the era of this unprecedented
from research sites can serve has, thus, ensured the massive pandemic, the internet use has
multiple purposes. For example, dissemination of knowledge with increased manifolds in many
for researchers, the information an ease for audience in bulk. domains in general, and particularly
obtained from published research Institutional or open access to the in research. The constraints of in-
manuscripts can provide a recorded information in electronic person research activities have
theoretical base in the form of form has resulted in Information accelerated the reliance on the
literature review to provide a crux of Revolution, giving an edge to internet use. In the era of this new
the extant research and facilitates researchers to quench their normal, the research community
in identifying the research gaps to scholarly curiosity. Now, scholars at the national level should be well
open research avenues for future around the world can search abreast of the use of the available
researchers. most of the information about the online research resources. This calls
subject matters of their interest for the need to increase awareness
Internet is not only an information online. The reliance on internet for among researchers. Institutions
giant but also provides efficient knowledge sharing has expanded should offer training on the use
quantitative and qualitative data massively during COVID-19. of software and applications
collection tools, software and Webinars and virtual conferences used for research purposes. The
mobile applications. For instance, using software like Zoom, Teams, issues related to the internet use
Instant Data Entry Application Bb Collaborate, Webex Meetings, should be identified and solved
(IDEA) for documents and records, Panopto etc. have been proving to maximize the efficiency of the
Google Forms and Zoho Survey the efficient and effective means researchers.
for questionnaire data collection, to disseminate knowledge

55 www.pide.org.pk
DATA PRIVACY IN SOCIAL MEDIA
NADIR ABBAS

Did you know that, on average, an internet user sharing, which is a method of gaining access to
spends more than two hours on social media or a user’s computer. Once an account has been
that forty-five percent of the world’s population compromised by acquiring credentials via a phishing
uses social media? That means evidently 3.48 billion attempt, hackers can use it to disseminate malware
people are online right now. Networking sites like to all the user’s contacts and further use malware to
Facebook, Twitter, Instagram, and Snapchat have steal personal information, extort money, or profit
become digitized advertisements for internet users from forced advertisement. On the other hand, social
rather than just an app. media bots are commonly used to steal data, spread
spam, and conduct distributed denial-of-service
With the increased use of social media, there comes assaults, which aid hackers in gaining access to user’s
a privacy concern. Although today’s widespread use devices and networks.
of social media cuts across all age groups, according
to 2019 reports, children and teenagers are the most The apparent lack of privacy on social media makes
active Internet users, and they are the least aware it necessary to safeguard users’ online privacy before
of how to secure their personal information on the sharing anything on any social media network.
Internet and, therefore, most exposed to cyber- All social media platforms have privacy policies,
crimes involving breaches of information privacy. and therefore, before creating an account on any
social media platform, it is critical to comprehend
Unlike other topics that may come and go, data privacy their privacy policies. Most social media default
remains a top concern of users online. According privacy settings may allow your information to be
to a research analysis among UK and US adults, 29 shared with other third-party internet users if it is
percent are concerned about how businesses utilize not checked by the user beforehand. For example,
their data. In contrast, 36% of consumers are worried when you make an Instagram account, it is public
about their privacy but have their profile on public by default; therefore, changing the privacy settings
and are not actively willing to change their behavior. may restrict the amount of information shared by the
social networking site with other users without your
Since these apps are designed solely for connecting awareness.
and sharing, achieving complete anonymity on social
media is quite challenging. According to recent Consider the following actions to address the issue of
allegations, some of the world’s top corporations, lack of privacy.
including Amazon, Microsoft, and Facebook, as well
as different government agencies, are gathering • Use unique passwords for each of your social
information without consent and keeping it in media accounts.
databases for future use. On the other hand, a recent • Avoid utilizing public computers for social media
documentary called “The Social Dilemma” states that accounts.
users are the product, and their data is what social • Avoid clicking on social network links, especially
media is selling to big corporations. Companies click baits.
analyses our behaviors on internet platforms and
then extract the capital generated by people online to Secure your social media accounts password by using
enhance growth and advertising income. Therefore, protection apps for that purpose.
in this digital age, it is nearly hard to claim privacy.
In conclusion, the improper use of social media can
Cybercriminals are skilled at duping social media users lead to security breaches and expose information that
into disclosing and stealing personal information and can lead to privacy violations—as a result, educating
obtaining access to accounts that users deem private. users about the risks of exposing sensitive data and
For example, cybercriminals use phishing to get promoting awareness of individual privacy is critical.
sensitive personal information in the form of an email, This will lead to a more secure social environment.
text message, or phone call. These communications Furthermore, the use of social media should be
dupe users into disclosing passwords, banking regulated by universal standards, regardless of
information, or credit card information. Additionally, ethnicity, culture, religious beliefs, or socioeconomic
one of the social media threats includes Malware standing.

INTERNET FOR ALL 56

INTERNET!
A DEVELOPMENT ENABLER
SANA HABIB

The Internet has become an online classes. It’s time to build it! suffered a lot due to access to
essential gismo to access The Internet can give more children Internet, affordability of devices
public information and is a access to affordable education, and illiterate parents; since there
source to protect fundamental and it will provide opportunities was no one at home to guide the
independence. Over the last for businesses to excel. Current children during the pandemic.
two-decade, the number of statistics reveal that only about 33
Internet users globally has percent of households in Pakistan In order to handle the above
increased substantially. Access have the access to Internet. Many discussed issues, prompt action
to the Internet world has the peoples in rural areas have poor is required to counter this; we are
potential now-a-days to change access, or no access, to Internet facing digital divide as well which
the way people’s lifestyle, mode service, and schools in rural areas further deepening several other
of communication, activities often lack Internet access and divides, e.g gender and economic
trends, working structure and ICT hubs. There are several issues inequalities. There is a time to
business market. Internet access is that contribute to the relatively launch Network Organizations
considered a development enabler low number of Internet users; cost like Internet Society with people-
by policymakers. Information of internet is one of them and centered approach to handle the
and communication technology misconceptions are another big Internet standards, education, and
(ICT) access is still far from equal reason as some people consider policy development. This will push
distribution, and many people social media as Internet only. members for more Internet access
have not yet benefited from the across the country by increasing
potential of the Internet. This UNICEF and the International awareness about the benefits
intensifying digital divide is due to Telecommunication Union (ITU) of Internet. More Internet users
various reasons including lack of estimate that, two thirds of and affordable excellent quality
infrastructure, deficit of affordable children of age group 3-17 still Internet services in Pakistan will
amenities and essential digital have no access to the Internet. In bring opportunities for distant
skills required to get maximum Pakistan, out of 80 million children learning, easy access to health
benefits from the opportunities of the same age group, only 11 and shopping services, increased
that Internet offers. million children have access to productivity, and technological
Internet. Gender gap with 7 million development. The future will be
The world has been attacked by boys and 4 million girls making bright, if Pakistan can utilize and
the Covid-19 pandemic, which the situation more vulnerable. sustain the benefits of Internet
has disturbed every sector of the According to PSLM 2019-20, only for the people, it will unlock
economy. The education sector 3.17 percent of children of age the human competencies and
has also been affected, where group 3-17 years used Computer / delivers the platform upon which
the conventional education Laptop Tablet in last three months. an incipient digital economy can
system cannot remain working Education indicators of Pakistan prosper. As the Internet and digital
and the educational institutions are also not satisfactory as from technologies have become more
around the world started to look 2012-13 till 2019-20, Literacy rate is indispensable, it has also become
for an unconventional education stagnant at 60 percent. In the last more crucial to link the people
system. In Pakistan an alternative five years, school attendance of who are being left behind.
online education system has population 10 years and older has
been designed, to benefit each also been declined to 60 percent Pakistan has also adopted Global
student at home but due to the from 62 percent. Pakistan with Development Agenda, Sustainable
unavailability of internet and 32 percent out of school children Development Goal as Vision
quality of internet education has is among the top 3 countries in 2030, without making Internet
been severely affected. It seems the world that have the highest accessible it is not possible to
very difficult to live without number of out-of-school children achieve the SDGs. More Internet
the Internet access during the due to socio-economic disparities. access is required for the vision to
crisis of pandemic. First year of It is expected that due to Covid-19, become reality.
the Covid-19 has many lessons this percentage will increase
to be learned that cannot be as education was technology SDGs called for the universal and
overlooked. As internet access had dependent during the last whole affordable access of Internet in
an unfathomable impact on the year. Access to Internet along developing countries by 2030
lives of people, providing many with the availability of devices is - a Goal that we are far from
options to the people to work from a big issue in Pakistan. Quality of reaching.
home and continue their working, education provided during the
skills and education. pandemic period is another issue
that will be raised when the proper
In Pakistan, the necessary school resumed again. Children
infrastructure is lacking to conduct with disadvantaged backgrounds

57 www.pide.org.pk
SOCIAL MEDIA AND COVID-19
FATIMA HASNAIN
The World has witnessed the evolution of Media anti-vaccine propagators with more than 59 million
from a piece of paper to wireless societies. With the followers. But with the disease, social media also
development of technology, Media has transformed brings the remedy where global health organizations
into multiple types. Furthermore, globalization has such as WHO counter such misconceptions about
led to innovation and enhanced forms of media, Covid-19 vaccines.
ranging from the printing press to digital media. As
important as it is. media has also been titled as the Other officials have also stressed the fact that social
“fourth pillar of democracy” by the Victorian writer, media has been badly used to spread conspiracies
Thomas Carlyle. It functions as a watchdog in the regarding vaccines. Secretary-General of Pakistan
political operations of any democracy; this is what it Medical Association, Dr. Qaiser Sajjad, also told
has been doing in Pakistan. during a talk that the masses were falling prey to the
disinformation shared on social media regarding the
More recently, media can be seen in the form of vaccines. The founder of Media Matters for Democracy,
social media applications that have taken their place Asad Beyg, opined that Pakistan is highly susceptible
in the information society. Facebook, Instagram, and to such concerns, keeping in view our literacy rate.
WhatsApp are among the more active applications in
informing the masses about current affairs and daily The concerned officials appealed that the government
social issues than the news channels themselves. devise strategies to counter such conspiracies, and
The official hours leave less time to go through a make social media a safe haven for the country.
newspaper; this is where social media floods in. Due However, the Federal Information Minister responded
to social media, we know how provincial governments that a comprehensive communications strategy was
are responding to the Covid-19 crises in the country. being rolled out effectively. In a nutshell, social media
From the activities in the Parliament to the ebb and is a democratic platform. Not only does it display the
flow of the social sector of Pakistan, social media has provider’s perspective, but it also keeps the platform
covered it all for us. However, the openness of social open for the public’s comments and views on the
media has its cons as well. matter. Hence, where it is capable of empowering
the marginalized, it can also infect the masses with
During the crises of Covid-19 in Pakistan, social media digitalized misinformation.
has been active in informing the digital citizens
about positivity ratios and current positive cases. Social media is one of the most crucial elements
More recently, our national news agencies, such as of modern man’s life. It has the power to elevate
DAWN and The News, have taken to social media to even the remotest of people and bring them to the
reach the masses. But with the positive role of social limelight within the blink of an eye. But at the same
media during the pandemic, social media users time, it is the duty of the people to make fruitful use
have exploited cyberspace to spread disinformation of media and help the Government to counter cyber
regarding the efficacies and importance of vaccines. problems. Today with the help of social media or the
According to the Center for Countering Digital Hate “digital democracy”, we can join our hands in the
(CCDH), social media became the largest platform for global fight against the Covid-19 pandemic.

INTERNET FOR ALL 58

INTERNET ACCESS
A limited population of Pakistan enjoys internet access. Imagine the benefits that would accrue to the society
and the economy if the entire population of the country had internet access. The internet access would prove
useful in raising the literacy rate through online education to the deprived ones, providing health advice
remotely in far-flung areas, enabling farmers and handicraft manufacturers to connect wholesalers and
retailers directly in cities without the intervention of middlemen, and providing freelancing opportunities to
many more, accelerating e-commerce. These are just a few of the benefits of internet connectivity. Given the
disruption that Artificial intelligence and technology are causing a full range of benefits is even difficult to
imagine at this stage.
What needs to be done to provide universal internet access is described in Table 9.1, after a brief overview of
the cellular industry, which is to play a key role in ensuring access.

The State of Cellular Penetration

Pakistan is an emerging cellular economy, with digital technologies beginning to transform the way people
live and work. Currently, there are 169 million cellular subscribers that cover 80% population of the country.
a 40% of the population is using internet facilities.
a The total economic contribution of the mobile ecosystem in Pakistan was $16.7 billion in 2018.
a The ecosystem created more than 450,000 direct and indirect jobs.
a It contributed $2.2 billion to public sector revenue, including $1.5 billion direct and $0.7 billion indirect
taxes.
Celluar Penetration and Teledensity
176 Million 91 Million 2 Million 93 Million
Cellular Subscribers 3G/4G Subscribers Basic Telephony Broadband Subscribers
Subscribers

82.34% 42.43% 1.13% 43.5%

Teledensity Penetration Teledensity Teledensity

Source: Pakistan Telecommunication Authority (December 2020)

Cellular Ecosystem
The Story So Far
TeledensityTotal
79.65 20.35
TeledensityTotal
39.98 60.02
TeledensityTotal
1.13 98.87
TeledensityTotal
40.95 59.05

Operator
a Mobile subscriber penetration is still low. value added
$3.6 billion
a The country scored 39.8 in the latest Mobile Connectivity
Index, compared to an average of 45.7 for South Asia.
a There is a sizeable ‘coverage gap’; mobile broadband
(3G or 4G services) accounts for less than five in 10
cellular connections. Mobile
Ecosystem
a Availability, affordability, and content are the key $16.7 billion
5.4% of GDP
barriers.
Improved Input in
a The smartphone adoption rate is 49%. effiency in supply of
different good &
a Conservative pace of 4G adoption in recent years. economy services
a (23% in 2019) suggests certain intervention are required $12.3 billion $0.7 billion

to disrupt market dynamics.

59 www.pide.org.pk
a Pakistan’s operators invested $5.3 billion between 2010 and 2018, but the average CAPEX as a proportion
of revenue is lowest (23%) in South Asia.
a There is poor local manufacturing. Still, the Samsung and Huawei account for over half of all mobile phone
sales in Pakistan, reflecting an absence of homegrown firms.

Unique Mobile Subscriber Penetration (%)

Mobile Internet Penetration, Usage Gap & Coverage Gap

2025 42 48 10

2025 42 48 10

2019 26 59 15

2019 26 59 15

Mobile internet penetration Usage gap Coverage gap

Mobile internet penetration Mobile Internet

UsagePenetration
gap (%)Coverage gap

35% 36% 35%

36%

27% 25% 26%

18%

9%

0%
India Bhutan Nepal Bangladesh Pakistan

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 Internet Access

Issues Solutions

• Provision of internet infrastructure does not • Do not eye sale of the spectrum to mobile network
require public investment – the infrastructure operators as a source of revenue – Internet access
shall be laid and owned by the network should be a priority. Provide spectrum at a nominal
operators. They have to be facilitated by easing price or even free of any fee.
out their overall cost.
• A total spectrum of 19000 MHZ is available out • Bind the cellular industry to lay down the
of which only 256 MHZ has been auctioned so infrastructure required to provide access to at least
far . 90% of the population.
• The infrastructure required to provide internet
access is to be laid by the cellular industry. • Spectrum for 5G, whenever auctioned, should
• The rising demand for the internet increases preferably be at a nominal price or even free because
the radio frequencies that a mobile phone the deployment (infrastructure) cost of 5G for the
operator requires. network operators is quite high.
• Radio frequencies are auctioned to mobile
network operators in the shape of the spectrum.
• The first sale of spectrum fetched $291 million
from each of the network operators in the early
2000s. Since then the sale of spectrum is being
viewed as a revenue generation avenue.

A significant segment of the population, especially Provide a targeted subsidy to those who either cannot
the recipient of grants from BISP, may not be able afford or can afford only partially. This investment will
to afford internet charges. carry high payoffs.

Tower sharing by network operators would reduce Institutional constraints to tower sharing need to be
the cost for all operators. Some institutional addressed (We need to understand the institutional
issues that constrain tower sharing needs to be constraints to tower sharing through research).
addressed.

While awarding spectrum to mobile network Coverage obligations may be enhanced to increase
operators some conditions regarding access are access.
part of the contract.

E-commerce: Currently most of E-commerce is With the launch of RAAST by SBP, online payment is
relying on 'Cash on Delivery'. The real breakthrough likely to become easier.
will come when online payment becomes easier.

1% sales revenue of the cellular industry goes into The law should be enacted to make it difficult for using
USF (Universal Service Fund). The funds available the USF funds other than the prescribed purpose. USF
in the USF were to be utilized for providing needs more focus on fixed Internet for high speed. As
connectivity in remote areas. The USF has not fixed is more under served.
been utilized exactly as intended – at some point
the funds available were even used for retiring
circular debt.

61 www.pide.org.pk
Consumers in Pakistan Face a Complex System of Taxes and Fees
a Telecom services in Pakistan are perceived as a luxury.
a For the country’s bottom 20% and 40% income groups, the total cost of owning a mobile phone for both
low and medium consumption baskets is above the UN’s “1 for 2” target (i.e. 1 GB of data costing less than
2% of monthly income).
a The 31% tax rate as a percentage of the total cost of mobile ownership (TCMO) is significantly above the
global average of 19%.
Cellular Phones: Cross Country Comparison of Taxes & Fees

PAKISTAN SIM CARD TAXES

ACTIVATION TAXES
BANGLADESH
ADDITIONAL VAT
FOR SERVICES
SRILANKA
HANDSET TAXES

NEPAL
USAGE TAXES

AFGHANISTAN CUSTOM DUTIES

Figure
Action Points
Make internet widely and cheaply accessible - consider fully funding fast internet access to
all major cities within 2021.

Look at the sale of Spectrum (i.e. frequency) to telecom firms as an internet access issue
rather than revenue generation.

Figure
Further Research
What will be the cost of providing internet access to almost entire population of the country?
What percentage of population cannot afford internet? What annual expenditure will have

to be incurred to provide to those who cannot afford it?

References:
Global System for Mobile Communications, GSMA (2020a). The Mobile Economy Asia Pacific 2020.
GSMA Association.
Global System for Mobile Communications, GSMA (2020b). The Mobile Economy Asia Pacific 2020.
GSMA Association.
Global System for Mobile Communications, GSMA (2020c). Mobile Internet Connectivity 2020
South Asia Fact Sheet. GSMA Association.

INTERNET FOR ALL 62

 WEBINAR BRIEF
INTERNET FOR ALL
PART I
According to “Inclusive internet index for 2021” related indicators such as the e-government
Pakistan secured 90th place among 120 countries development index, network readiness index, and
globally and 24th among 26 in the South Asian e-commerce index compared to Bangladesh, India,
region. The prospects of growth with technological Nepal Sri-Lanka, and Myanmar.
advancement seem to be a dream for a country where
more than 89% of the population cannot afford the The panel discussed the following main issues and
internet. What is more alarming for Pakistan is left challenges faced in Pakistan.
behind on various internet and communication-

Issues Highlighted

The dilemma of the government in Pakistan is that high upfront charges thereby allowing the operators
it considers the internet as a luxury instead of a to have the spectrum improve service delivery and
necessity without realizing the scope of the internet provide network faster and quicker.
that goes beyond social networking. In the modern
era, the internet has become an integral component Spectrum is auctioned by setting minimum/ floor
of all sectors including education, health, commerce, prices in Pakistan without considering the ability of
banking, and agriculture. It is high time to revise the operator to pay back through earning a single
our tariff policies to make the internet and devices dollar per user. There is a disconnect between the
affordable for the masses for greater penetration. expected average return per user and the minimum
bidding price set by the government. Moreover,
The Internet has become a divider instead of an nearly 30% of tax is collected from the cellular
equalizer by providing quality services in some areas operators which are not only the highest in the world
and cities while ignoring the rest of the population but also the most efficient tax collector. On one side,
in rural parts. Availability of devices such as the government collects a huge amount of tax from
smartphones and other devices is also a big issue the cellular companies, while on the other side telecom
young generation is facing. Policymakers, regulators, companies are penalized by charging high fees as
and internet service providers need to understand the right of way and spectrum fee.
the scope of the internet and its importance for our
young generation. The policies in place have not been revised for the last
fifteen years. Government and policymakers should
One of the major challenges faced by telecom formulate farsighted policies that enable, encourage,
companies is regarding the release of spectrum by and incentivize companies to improve coverage and
the government through auctions. The spectrum services. For instance, optic fiber is taxed as a luxury
released in Pakistan is the lowest in the world and item that needs to be reconsidered keeping its current
no new spectrum is released every year. Hoarding of utilization and importance. Moreover, telecom is not
the spectrum is seen as short-term money-making recognized as an industry which constricts it from
activity by the government to finance its budget having opportunities that an industry enjoys.
deficit therefore, it is creating artificial scarcity thus
pushing service providers to pay high prices for the Almost every telecom company is managing
release of new spectrum. towers across the country. Initially, there was a
competitive advantage for having individual towers
Pakistan does not have a policy goal regarding the by each company but later neither government nor
proliferation of the internet. Revenue per user is one companies made deliberations regarding sharing
dollar in Pakistan which is the cheapest in Pakistan towers. Although, some companies are willing to opt
while it is 30-40 dollars in the USA. Considering the for tower sharing tax implications that restrict them
revenue generated, the government needs to adopt from selling assets or sharing towers.
a policy such as a pay-as-you-go instead of charging

63 www.pide.org.pk
In Pakistan optical fiber and penetration of the There is a need for fast-tracked technology and
internet is worse and only 10% of mobile towers hardware to enhance coverage and reach ultimate
are connected to optical fibers. Similar constraints users either by 4G/5G of wire connectivity. But it is
are also faced by optic fiber companies due to the hampering fixed connectivity by charging a different
absence of unanimous policy or framework. Civic fee for laying optic fiber and taxes. Government
authorities see this as an opportunity of earning should remove impediments regarding the laying
money by charging a fee for laying optic fiber from of fiber optics, and spectrum, the operators will
different companies. ultimately improve services.

Suggestions

• There are two important funds, universal service internet is going to be higher than upfront fees
fund (USF) and ignite technology fund, generated and levies that are recently focused.
by telecom companies and controlled by the
government. These funds need to be deployed • Government should make a service corridor
effectively to subsidized internet and device for optic fibers along the side of the highways.
availability in Pakistan. Companies interested in laying optic fiber can use
those services and pay a fee to the government
• The government should make long-term policies for utilizing those services.
because the contribution by ultimate users of the

PART II
CEOs of telecommunication companies continued There are excessive regulations and regulators
the discussion in this session pointing out major are least productive in terms of catering needs of
challenges their companies face and policy the sector.
recommendations. Mobile has been a great
equalizer by providing internet services to everyone. • The Telecom sector is deprived of the rights that
Although the regional comparison shows that are given by the law and there is huge negligence
Pakistan remained alarmingly behind on internet from the government in enhancing the scope of
inclusiveness, progress has been witnessed at this sector. The pandemic has put tremendous
affordable prices in terms of services and coverage pressure on telecom service providers because it is
over the years. the only viable solution to ensure online education,
health care, banking, and functionality of many
• The issue of high spectrum prices has been other sectors. Surprisingly, the government has
witnessed by many countries in the initial neither interested nor contributed in this sector
phases of telecom implementation but sooner nor given any relief/concession in the last fifteen
mistakes were realized and corrected. Pakistan, a years.
country with a perpetual current account deficit
sees spectrum receipts as an opportunity for • The Telecom sector is facing various issues and
governmental value capture by charging high disputes in settling prices with external service
amounts in the beginning. We need to realize providers. Despite those, telecoms are striving
the fact that when companies overspend on hard to provide the cheapest services by paying
the spectrum, they are left with less money to huge amounts to upstream submarine cable
enhance quality or coverage and compromise on operators. Various petitions have been filed
long-term growth. Pakistan needs to learn from regarding pricing issues and internet bandwidth
the experiences of other countries and resolve the in courts by telecom companies. Delayed
issues of the spectrum to provide faster services decision-making at the federal level prolonged
in the long term. the case decision to years which otherwise would
have been resolved in days. For instance, FBR
• The government is sacrificing long-term economic has not been able to decide about the status of
growth for short-term money. Government telecom as an industry even after two decades of
should not see telecom companies as efficient recognition by the cabinet.
tax collectors, whether it is regulatory duties or
spectrum. We need to realign our mission and • There is no ownership of the telecom sector
vision by focusing on development needs at in Pakistan. Every sector is moving towards
affordable prices everywhere and to everyone. internet-based sectors such as finance as fintech,

INTERNET FOR ALL 64

 agriculture as agri-tech, education as ed-tech, and smart devices and handsets. Nearly 50% of the
so on, therefore, Pakistan needs to understand customers are using 2G technology with the
the state of digital emergency and prioritize the cheaper mobile set. Affordability of the devices is
telecom sector as a crucial driver of growth. This one of the biggest impediments Pakistan is not
sector needs complete government ownership able to capitalize fully on 4G and 60% of users
and proactive forward-leaning support. Our fight don’t have 4G devices. As a nation, it is suboptimal
should be about how to take Pakistan out of the to divert to 5G because we need to assess our
current myopic situation and change the status abilities, infrastructure and technology to adapt
quo. to 5G. We need to develop a whole ecosystem to
leapfrog because service providers alone cannot
• Readiness for 5G: Pakistani market is not ready ensure the availability of 5G without fulfilling pre-
to take up 5G technology due to the non- requisite conditions.
enabling environment (existing regulatory
structure, capital) and non-affordability of the • The main objective of telecom is to provide fast
smart devices. 5G is low latency which is required internet to its citizens instead of providing 5G and
for technology-controlled businesses like the take up technology which is most appropriate for
autonomous car industry and remote surgeries. us as a country. Given the existing tax structure on
Our market is not ready for such a business customers (32%), it is a great challenge for certain
as Pakistan is still struggling to penetrate 4G groups or segments such as students to afford
which is not happening due non-availability of smart devices and the internet for education.

Policy Recommendations

Policy framework 2004 was a forward-looking sustainable framework due to its prospects. The fact
policy that enabled the sector to develop from 5% is that this sector boosts and flourishes other sectors
to 50%. The policy framework needs to be upgraded like education, commerce, health, and economy with
every five years but it did not happen. Pakistan was changing dynamics of the market. Our goals need to
performing ahead of many regional counterparts in redefine with the evolution of technology and ensure
2004-2009 comparing the connectivity index at that that the internet for all is a sustainable way to achieve
time. Therefore, there is a dire need to upgrade our economic growth.
policy according to the requirements of the current
era to make things happen for guaranteed progress. Pakistan also needs to build on its demographic
There is no ambition and mission in our policy. dividend by enhancing skills through policy
interventions.
Spectrum is the lifeline of the telecommunication
sector, but we are losing its economic value by not Malaysia did a rigorous exercise for digital
utilizing it timely. Pakistan has 1/3 of the spectrum transformation supervised by President Mahathir
as compared to that of India or Bangladesh and ¼ of himself to ensure the functionality of the digital
advanced countries like Arab and Turkey. Instead of transformation which led to successful results. A
hoarding spectrum, the government should release similar vigorous exercise is required in Pakistan that
it in time for better utilization. can help to boost economic growth.

Consolidation of telecom companies is also an

important aspect to build robust infrastructure,
enjoy economies of scale and improve efficiency. The
Telecom sector needs a consolidated regulator or an Prepared By
umbrella organization that can monitor the progress
and reset prices of spectrum and availability. Telecom Nazia Hasan
is a competitive market, therefore, the government Ph.D. Scholar, PIDE
should provide a conducive environment to enable
companies to perform better. Pakistan can consider
the case of China which limited its networks due to Edited By
affordability issues whereas, in Pakistan, multiple
companies are investing in isolation on towers and Hafsa Hina
networks. Assistant Professor, PIDE

The telecommunication sector needs to be

recognized as a sector of sectors and needs a

65 www.pide.org.pk
 WEBINAR BRIEF
VIRTUALIZING SERVICES BY
OFFERING INTERNET FOR ALL
Preamble

The dilemma of the government in Pakistan is that it It is a time to review our policies to make the internet
considers the internet as a luxury instead of a necessity and devices more accessible to the general public,
without realizing the scope of the internet that goes allowing for wider penetration.
beyond social networking. The internet has become a
vital part of all industries in the modern era, including Dr. Nadeem ul Haque started the discussion with this
education, health, business, banking, and agriculture. question

In Pakistan, the internet is considered a luxury. Sadly, the government taxes the use of
the internet and internet devices. So, how do we achieve “Internet for All”?

Key Messages

Mr. Khalid Raza

There are two challenges to the internet for all

1. Restricted Telephony 2. Unreliable Delivery

Unfortunately, WhatsApp calls are restricted in the We need the original internet architecture with the
Middle East. The government should deregulate the universal addressing model. Right now, we can not
taxes imposed on the spectrum of the internet. Big trust our internet connection during a video call or a
companies are struggling to see future innovations remote surgery. So, basically “digitalization is a threat
since the internet has evolved into a content delivery to those who do not transform.” With the world now
service like Facebook and Netflix in the last decade. changing, and as technology is improving, we need
to make sure that the internet is not becoming a
The next decade of internet usage is not the hurdle but allowing us to grow with the world.
consumers because we hear that there will be
around 6 billion users and 30 billion IT devices. The
edge is the source of data, it will be consumed and it
is monetizable. “Data is the next oil.”

Solutions to the challenges

• The 5G bandwidth for high internet speed. This will • The right internet architecture with a universal
allow us to trust the internet connectivity during a addressing model. It will lead us to go from
video call or a remote surgery. It is required so that companies to individuals to monetize data. It
we can innovate and learn through technology. would reduce the cost, and therefore the service
would be available to everyone.

INTERNET FOR ALL 66

Mr. Ahmed Shahid

• He worked for seven years on 5G base station individual. After looking at the infrastructure of
equipment at Valley Communications and it and how it changed the internet connectivity
worked on LTE baseband networks. there, we began to wonder what is the hurdle for
Pakistan in achieving 5G?
• We have an example of Reliance Jio, which was
a major project in India to bring 5G, by just one

Hurdles

• Pakistan’s communications infrastructure is too • The spectrum auction has failed thrice for the
heavily regulated. 5G network due to heavy regulations of the
government.

Dr. Suhail Chughtai

As an orthopedic surgeon, he has been solving the nation using the facilities that we have. We can
medical problems through technology. There are treat patients in remote locations and assist them
various methods like Direct Telesurgery, Assisted with some acute diseases, but for major surgeries,
Telemedicine, and Telecare at home which can be we require higher bandwidth and better internet
used to help treat patients. We have successfully connectivity. This will help the people living in remote
helped the population cope with the coronavirus, locations to get the best health care services without
and be responsive and give the best treatment to traveling to bigger cities.

Mr. Imran Qureshi

The challenges faced during Solutions

virtual learning:
• Government should reduce taxes on devices such
• Lack of computer-aided training of teachers and as laptops and mobile phones.
students.
• There should be training workshops for teachers
• Weak internet connection for video calls. and students.

• Laptops are expensive and, not everyone can • The should be a government policy of compliance
afford them. and consumer data.

Prepared By
Conclusion

The internet for all has become a necessity far S. M. Usman Shahid
greater than cars. It is not a source of revenue MPhil Scholar, PIDE
but a source of income.
Edited By
Hafsa Hina
Assistant Professor, PIDE

67 www.pide.org.pk
INTERNET FOR ALL 73