Effects of 3G 4G On The Economy of Pakistan

Posted by Sohail Khatri  |  at  11:59 PM 2 comments

As we know that the 3G and 4G spectrum has auctioned in Pakistan on 23 April 2014 by Pakistan Telecommunication Authority (PTA) Mobile communication services have become a necessary part of economic work and function, and the mobile telecommunication sector continues to offer extraordinary opportunities for economic growth in both developing and developed countries. As the technology develops, mobile services have the prospective of affecting a country’s economy by providing High-value 4G data services that are right to use via smart phones, tablets, and dongles that carry mobile data services to businesses and consumers.

In this article we will describe you the effects of 3G and 4G Internet on the economy of Pakistan. Auction of 3G licenses can bring a revolution in the fields of Education, Health, e-commerce, e-banking, Transportation, Utilities and the most important in the field of Information Technology in Pakistan. Due to high speed internet a mobile user will shift from text and voice services to data-driven services where a user can enjoy the feature of video calling and live streaming.
Economy of Pakistan

The software industry will take best benefit from the auction of 3G spectrum, because due to high speed and fully featured internet service the software development will raise beyond our expectations, developers will not have to wait longer as in the present situation. At the present time we have almost 1500 software companies, Two are on the Karachi Stock Exchange (KSE), 2 on the National Association of Securities Dealers Automated Quotations (NASDAQ) and 1 on the Dubai International Financial Exchange (DIFX). These facts are before the arrival of 3G now we easily can imagine after this technology Pakistani Software Export Industry can boost the current GDP of the Pakistan.

In August 2013, a UK-based consultancy said Plum 3G could boost Pakistan’s GDP.The report more accomplished that: The government will be able to generate around PKR 23 billion to 70 billion additional tax revenue 3G could result in additional GDP value between 380 billion/PKR and 1,180 billion/PKR up to the beginning of 2020.If the next spectrum licenses are issued today, they can produce 900,000 new jobs till 2018.Direct revenue from 2.1GHz spectrum can be in between 100 to 180 billion PKR. Further delay in license auction could cost the GDP a loss of 5 billion rupees per month up to the next 7 years OR revenue loss of PKR 300 million per month. If we carry a traditional guess of 0.5% blow on GDP and suppose that impact will last for 3 years then Pakistan’s current GDP will increase by Rs. 40 billion in one year after auction, while a further Rs. 105 billion increase after second year of 3G auction and Rs. 210 billion at some stage in the third year of auction.

Thees new generation technology brings a bad news for internet service providers ISPs which are providing slow, poor and snail speed internet connectivity at high prices. In order to endure in cut through completion with 3G/4G companies, ISPs will have to provide better internet at lowest price to their customers. But the good news is that after the arrival of this technology the economic condition of Pakistan will definitely improve and will bring it to a brighter future. 

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  1. Nice Articles Sohail Good I like Your Website And Thanks For Sharing Keep it Up

    1. Unaiza thanks for liking my article keep visiting for more inserting things.


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