Pakistan Telecommunication Company Limited (PTCL) monopoly may end by 2002
KARACHI- The seven-year monopoly of the Pakistan Telecommunication Corporation Limited (PTCL), starting from the incorporation of the company in 1995, would expire in December 2002 and the government has agreed under the World Trade Organization (WTO) regulations to lift its monopoly after 2002.
The Federal Minister for Science and Technology, Dr Ataur Rahman, favours removing the monopoly in order to attract private sector investments in the telecommunication sector.
The PTCL management feels that there should be a further extension in the monopoly as this could still the biggest attraction for any strategic investor.
Despite all the good things about market-based regime, financial analysts are not in favour of removal of monopoly. They believe that recent interest from the three international telecom operators in the privatisation of the PTCL is based on the attractions attached to the monopoly.
According to these analysts, the removal of monopoly from the PTCL (Indian Telecom company) would create some noise with the Pakistani authorities over the monopoly status of the PTCL.
Source: Business Recorder