Article, Malahat Rab  (Feb 2011)
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Islamabad, 19 Jan 2011: Prime Minister Yousaf Raza
Gillani, cutting the cake on "100 Million Mobile
Subscriptions". Chairman PTA Dr. Mohammad Yaseen &
CEOs of mobile companies are also seen in the picture
Hundred Million Subscriptions and
Counting
Pakistan made history by achieving
100 million subscriptions within a
span of less than 20 years and more
so in less than 5 years of deregulated
telecom sector. This spectacular
performance of mobile telephony is
a plush oasis in an otherwise dismal
economic landscape. Malahat shares
her views with our readers

To give a roundup of telecom sector
achievements, it is one sector of the economy that has brought in
Foreign Direct Investment of over US$ 6.3 billion in last 5 years, a
share of over 30% in the total FDI coming to country between 2005
and 2010. The sector has contributed over Rs.500 billion to the
national exchequer in the form of taxes and duties in the last 5 years
which amounts to over Rs.100 billion per year to Federal Board of
Revenue. The social benefits of growth in telecom sector are
distinctly visible. Telecom is the only area of economy where prices
are constantly coming down despite increasing costs including power
and gas tariffs. Mobile phone has enhanced and opened up business
opportunities not only for businessmen but also for the destitute
working class. A plumber, electrician, or a common labor, who could
never afford an office, a shop or permanent place of contact, now has
the equivalent of a mobile office in the shape of a cell phone,
ensuring availability of business on a 24X7 basis. It works to the
advantage of workers as well as the users of services.
For its contribution to the development of telecommunication sector,
Pakistan Telecommunications Authority (PTA) has been recognized
several times at the regional and global levels. In this regard, PTA
has received number of awards including the Most Progressive
Telecom Regulator in South Asia (SAMENA), The Government
Leadership Award (ITU) and best online contents on website among
regulators of South East Asia (LIRNEasia) on its valuable
contribution to the development and growth of telecommunications
sector.
There are several countries across the global where mobile
penetration is 100 percent. This means the number of active
subscriber lines (SIMs) is more than the total number of inhabitants.
Some of the countries that have penetration rates above 100%
include Sweden, Bulgaria, Israel, Russia, Finland, Netherlands,
Spain, Malaysia, etc. The penetration rate is based on total active
SIMs over total population. There are possibilities such as no SIM
ownership at all (e.g., children, some rural) or multiple SIM under
single ownership (e.g., public, private and unlisted enterprises, dual
SIMs). Therefore, the total mobile subscriptions do not necessarily
mean total inhabitants with mobile numbers. It is defined as the total
number of active SIMs used in the country.
In order to standardize counting of the total number of actual users
which has risen mainly due to the catapult growth of prepaid mobile
market, organizations such as International Telecommunications
Union (ITU), Asia Pacific Telecommunity (APT), Association of GSM
(GSMA) and LirneAsia are concentrating on streamlining these
parameters to define rules for subscribers, SIM and subscription
count.
Pakistan Telecommunication Authority maintains a database of all
telecom indicators and a full directorate is designated for collecting
(Local) and disseminating (Local, International) all data related to
Pakistan telecom sector. The authentic and cross checked data is
available with PTA since 2000 till date and is being updated
regularly. All the data which PTA collects is taken from the primary
sources e.g. operators, Federal Board of Revenue, Ministry of
Finance etc and according to international standards for data
authenticity and integrity. The data collected from primary sources
has minimum margin of error.  In order to remain current with latest
developments in ICT indicators, PTA officials are also sent for
professional development courses.
Since Active Subscription has been an important and critical
parameter around the world, companies, regulators and ministries
have been working on it very seriously. In this regard, a tailored
definition according to the requirements and availability of data is
formed and implemented accordingly by operators, regulators etc
around the world. In case of Pakistan, PTA conducted a study on
calculating Active Subscription and floated a consultation paper in
the industry along with recommended definition for Active
Subscribers as per international standards and invited comments
and suggestions (same is available on PTA website). In this regard,
after deliberation and discussions, a standard definition was mutually
agreed and approved by the Authority. All mobile operators are
directed to implement this definition as a standard and provide data
on this basis. All operators have complied with this definition through
a ‘certificate for implementation of definition and provision of data’.
However, while implementing the Active subscriber’s definition,
operators went through a process of data cleaning in which inactive
subscribers were chucked out of the systems of operators. This
exercise resulted in decline in the number of total active subscribers
of each operator (See month-wise operator-wise subscribers on PTA
website). According to the numbers that PTA receives every month,
the sector now holds total mobile subscription of over 100 million
which is growing every month.
The approved definition says:
“A Subscription would be counted as “Active Subscription” if the
subscription that is registered in the internal subscriber system of
mobile service provider (i.e HLR) makes any revenue generating
activity including Outgoing (Voice Calls, SMS, MMS), Incoming
(Voices calls) and Others (Recharge activity, Roaming services,
Data transmissions including GPRS/internet access, data transfers,
receipt sessions), during last 90 days. In case of no activity, the
subscription would be counted off from the billing system regardless
of fact that subscriber has a valid balance within prescribed timeline
of the credit at IN”. where ‘IN’ is the repository of all prepaid
subscriber numbers.
To keep a count of inactive subscribers, it may be noted that keeping
count of an inactive number or subscriber on the technical systems
and networks of operators bear cost which obviously is an
unnecessary burden.
The operators in Pakistan have done marvelous job in taking mobile
to every nook and corner of the country. The government is benefiting
immensely in financial terms from the sector and consumers are
enjoying a facility which is now a necessity at lowest tariffs (as
compared to ever rising tariffs of all other necessities). The social
benefits to the society are no less than the financial ones.
commending PTA, along with all stakeholders, is working to take our
mobile penetration to the level of the most advanced nations in the
world.