Telecom operators fear revenue loss
By: Hina Mahgul Rind
KARACHI: The government’s directive to cellular mobile operators (CMOs) that they should get all their sales channels of subscriber identity module (SIM) cards shut down and rely only on home delivery services instead, have created panic among both subscribers and CMOs.
The Pakistan Telecommunication Authority (PTA) directed CMOs to deliver SIM card to a customer’s postal address only after he provides copies of his computerised national identity card (CNIC) as well as utility bill/driving licence.
With effect from December 1, 2012, the SIM cards should be handed over to a customer’s CNIC address only, according to a government’s notification. In case of a delivery to a wrong person, CMOs will be held responsible, it said.
When an official of PTA was contacted, he said two documentary proofs (utility bill and CNIC) are mandatory to issue a SIM. He further said as the regulatory body PTA was following the direction of the ministry of interior.
The overnight decision rendered CMOs clueless about how to prevent impending decline of revenue that may follow in an effect of the decision after 15 days. Telecom analysts said the decision was taken in haste. They believe it will not only severely impact revenue of mobile companies but also affect government’s tax collection.
Mobile telecommunication industry contributed nearly Rs120 billion to the national exchequer in 2011. It turned out to be the largest tax paying sector in Pakistan. The industry also paid billions of rupees as fees and levies to federal and provincial governments.
It also provides 1.4 million direct and indirect jobs, becoming one of the largest employers in the country. Total direct jobs in telecom companies are no more than 12,000 to 15,000 while remaining is indirect employment in sales channels including mobile franchises, retailers and other small sales points. Despite all the economic challenges, telecom operators continue to provide highest quality services to customers and are continuously expanding to serve the un-served population, thus showing their commitment to society at large, said a telecom analyst.
Any such decision will further haunt investments in the telecom sector, especially in view of the government’s intention to auction 3G licences, he added.
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