ISLAMABAD: While debate on the
introduction of next generation mobile phone technology is centred on
what the government stands to gain from the auction of licences, few
realise what the advent of 3G and 4G will mean for consumers in
Pakistan, who currently enjoy connectivity at some of the lowest rates
in the world.
The next-generation technology is not
cheap and cellular providers will hike tariffs once 3G and 4G networks
are up and running. However, amid fierce competition, none of the
bidders is talking about the expected cost to customers.
But
nearly all operators agree that for those who opt-in for the 3G, 4G
experience, phone bills will go up. For example, it costs Rs17-20 to
download 1MB worth of data on the current 2G networks.
While the
experience will be faster, costs for downloading the same amount of data
on a 3G network will be nearly three times greater.
Telecom
experts say that cellular service providers will either have to take a
hit on their profits or pass on the added cost to consumers. “Of course,
they will have to strike a balance. It may be prudent to cut freebies
and discounts in exchange for better service,” a telecom professional
told Dawn.
Convener of the Internet Service Providers Association
of Pakistan (Ispak) Wahaj-us-Siraj said the mobile broadband services
would cost far more than those currently available — DSL, fibre-optic or
Wimax. The amount of data that could be transferred over the network
would also be limited.
A source in one of the mobile companies
said initially the 3G and 4G services might be offered to corporate
clients and post-paid customers first. Prepaid customers would be
offered the facility in the second phase.
Coverage and timelines
For
consumers, the auction will not immediately translate into the advent
of 3G connectivity on their mobile phones. In fact, the timeframe agreed
upon between the Pakistan Telecommunication Authority (PTA) and mobile
operators envisions 3G roll out within six months of the auction.
In
the first phase, services will be available in Islamabad, Karachi,
Lahore, Peshawar and Quetta and later on in other cities from each of
the four provinces.
The second phase, which will start a year and
a half after the auction, envisions the expansion of 3G services to
about 80 more cities. In the third phase, which will begin about four
years from now, 90 per cent of all tehsil headquarters will have access
to 3G services.
4G, on the other hand, is expected to roll out in
fifteen cities nearly a year after the auction. It will expand coverage
to another 80 cities two and a half years down the line. More remote
areas will have to wait nearly five years for 4G to become operational.
One
of the major developments associated with this next generation
technology is the improvement of internet penetration in the rural areas
of the country. Next door in Afghanistan, 3G internet services connect
its most remote parts to the rest of the world. But in Pakistan, that
will not happen for at least four years.
A PTA official told Dawn
there were security concerns regarding the expansion of 3G and 4G
services to the more remote parts of the country, adding that most
service providers would need some time to develop technical
infrastructure in such areas.
Govt in the green
The
bidding on April 23 will determine how much goes into the government
kitty on account of the licences. But the more the government makes from
the auction, the higher the tariffs are expected to be. Finance
Minister Ishaq Dar estimated that the auction would fetch the government
$1.3 billion.
The top four mobile operators will pay nearly 50
per cent of their bid price upfront over the next couple of months,
which will help the government pay its bills.
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