Except for Zong, all other telcos are against the implementation of 5G
Developing countries around the world are taking steps to deploy 5G in their respective countries. However, third world countries such as Pakistan are still lagging behind. Many industry experts, such as Pervez Akhtar, are urging the government to take steps to bring 5G to Pakistan, while the heads of the major telecom companies are resisting it. In this regard, the CEO of Jazz Ltd, Aamir Ibrahim, recently stated that the introduction of 5G, the fifth generation technology standard for mobile broadband networks, should be postponed.
CEO Jazz opposes the introduction of 5G
At a business conference organized by Nutshell Group, the CEO of the largest telecommunications company with a market share of more than 38% stated that stakeholders should strive to do their job better by ensuring “4G for all instead of 5G for a few”. In addition, he said,
Customers think 5G is faster internet. Governments think it means hundreds of millions of dollars in auctions. Equipment sellers believe 5G will boost their sales. Yet telecom operators think that (5G) is none of the above.
Mr. Ibrahim claims that less than one percent of mobile phones in Pakistan are 5G capable. The average cost of a 5G smartphone is around $200 or Rs 55,000, which significantly reduces the number of potential buyers. He stated that the government still taxes the telecom industry as a “luxury” sector. “This mindset has to change,” he added, highlighting that 98 percent of internet usage in Pakistan is on mobile devices.
He referred to telecommunications as a “cross-industry facilitator” and stated that areas such as banking, education and agriculture are becoming increasingly technology-oriented due to their reliance on mobile services.
“Internet is the power of the future and data is the new oil. But unfortunately we are not priced like oil or energy,” he added. In addition, he added that telecom companies should be able to price their products in line with inflation, as his company’s energy costs for the coming year will be “almost three times” compared to a year earlier.
In addition, reports indicate that all private sector telecom companies, with the exception of Zong, which is controlled by China Mobile, are resisting the deployment of 5G due to the many economic and government obstacles they face. Prior to the introduction of next-generation technology standards, mobile companies have demanded that their primary problems, such as high tax rates, stagnant revenue per user, profit repatriation, and rising energy costs, be resolved.
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