Science & Technology

In an interesting move that is bound to create ripples in the telecom industry, telecom operators in particular, Chairman PTA has hinted that the government may allow 3G license holders to adopt 4G technology according to a report published in the Express Tribune today.

The classification of various wireless technologies, such as WiMAX, Wi-Media, LTE and others, as 4G technologies is still a debatable subject and is under deliberation at various international telecom regulation forums. This has also been a cause of concern for existing telecom operators in Pakistan who have been reluctant to step into and invest in 3G (UMTS/WCDMA) networks which primarily focus on mobile broadband and high speed data networks.

In an interview, the chairman said:

    “Since licence is technology-neutral, it is the commercial choice of an operator,” Yaseen told The Express Tribune, while responding to a question about whether it would be more feasible to skip 3G altogether and go for 4G. When asked that this meant that the operators will be able to go for either 3G or 4G, he replied: “Yes”.

Many experts have expressed the concern that it is too late for Pakistan to step into 3G and that 4G networks are already knocking on our doors for roll-out.

The government of Pakistan is desperate to raise revenue and FDI through the introduction of 3G licenses and President Zardari is reported to have visited the UAE to meet Etisalat officials for the same purpose.

The operators, however, are not convinced on their forecasts and projected return on investment (ROI) should they step into 3G networks in Pakistan. Primary reasons being low per-capita income in Pakistan and already very low ARPUs for mobile operators on 2/2.5G networks. 3G handsets also cost significantly higher which is another major concern to spread 3G up-take in Pakistan.

The options, we believe, lie wide open for the government and the regulator to sit with existing investors and evaluate all possible options. As a technology enthusiast, I am fascinated with the possibility of seeing a roll out of both 3G and 4G networks in Pakistan. As a businessman, however, I will have to think very hard before I reach a decision.