Collaborative Investment Opportunities in ICT to Boost Pakistan’s Economy 

Collaboration serves as the catalyst to ignite the flames of digital transformation and propel the fourth industrial revolution forward. In today’s interconnected world, the pivotal role of information and communication technology (ICT) in driving a country’s economic growth cannot be overstated. However, the true potential of ICT to fuel prosperity and innovation lies in collaborative investment initiatives. By joining forces, stakeholders can not only unlock new avenues of growth but also mitigate the costs associated with traditional sectoral approaches. 

In a country like Pakistan, with a population exceeding 240 million and a youthful demographic, collaborative investment can play an immense role in driving sustainable economic development. Various sectors present ripe opportunities for collaborative investments, including expanding digital infrastructure through public-private partnerships, fostering the growth of platform economies akin to Alibaba and Amazon, and local manufacturing of low-cost handsets with advanced features. By leveraging the collective efforts of mobile device manufacturers (MDM), telecom regulators, government bodies, and cellular service providers (CSP), Pakistan can position itself as a hub for technological innovation and digital inclusion. Additionally, the development of 3G/4G offloading zones through collaboration among CSPs, government entities, and the IT industry can further accelerate the nation’s digital agenda and enhance connectivity for all. 

One of the key avenues is to connect the unconnected and promote digital inclusion through the expansion of digital infrastructure via public-private partnerships (PPPs). By utilizing the expertise and resources of both the public and private sectors in the in the deployment of fiber optic networks, high-speed internet connectivity can be accelerated to not only enhance the connectivity but also to build a solid foundation for adopting high-end technologies like 5G, smart cities, IoT networks, etc. to boost the thriving digital economy. The role of the role of the Universal Service Fund (USF) Pakistan is crucial in this regard, as it plays a pivotal role in extending network coverage to unserved areas and ensuring that individuals deprived of basic communication necessities are included in the digital revolution. 

Furthermore, investment in green energy infrastructure is essential to sustain the operations of digital communication networks and reduce reliance on traditional power sources. This can not only ensure continuous connectivity but also align with efforts to combat climate change and promote sustainable development. 

Another promising area for collaborative investment is to build platforms to leverage the gains of platform economies. For this purpose, no re-invention of the wheel is required, as there are proven examples of giants like Amazon and Alibaba with annual turnovers of hundreds of billions of dollars. It will help to provide support to local entrepreneurs and will act as a bridge to showcase locally made products across the globe. It will also enable capable individuals, even from sub-urban and rural areas, to utilize their skills to boost their quality of life while contributing to the national economy. 

Collaborative efforts are also required to lower the cost of business in parallel with exploring new avenues to improve the business market and increasing the profitability of existing players. One use case is to invest in the manufacturing of low-cost handsets capable of supporting 4G and VoLTE through the mutual efforts of CSPs, regulatory bodies, and tax agencies to upscale the level of all mobile users in the country. This will help to increase the adoption of older technologies while improving the quality of services for end users. It will reduce the cost of operating a traditional 2G/3G network and will also help in optimizing the use of spectrum for high-end technologies, resulting in a better user experience and high spectral efficiency. 

It will be a win-win situation for both the user and the operator and will elevate Pakistan’s position in the broadband ranking. 

In addition, Pakistan can capitalize on its vacant spectrum by further auctioning it to adopt cutting-edge technologies like 5G, employing a business-centric approach such as a pay-as-you-grow model. With a late-mover advantage in the auctioning and deployment of 5G networks, Pakistan has the opportunity to learn from international best practices and leverage existing use cases to devise a spectrum auction model that maximizes profitability for both stakeholders and enhances the overall telecom ecosystem. By implementing an innovative auctioning model, it can be ensured that the model is lucrative enough to attract substantial investment from CSPs, who, in return, can have a more reliable network with improved average revenue per user (ARPU). 

One of the areas of investment opportunities, especially in metropolitan cities, is to deploy 3G/4G offloading zones in crowded places like hospitals, malls, and parks to offload network traffic to Wi-Fi networks, which will eventually improve the end-user experience and cellular resources. Wi-Fi offloading can help local businesses by showing advertisements to end users on their landing page. This will enable them to approach customers available within their circle. 

In essence, collaborative investment is the new norm for expediting the nation’s economic growth and fostering innovation and digital inclusion.

Author: Yaseen Khan 

Assistant Director, Zonal Office PTA, Peshawar.