ISLAMABAD: The smartphone adoption in Pakistan is only 57 percent, which means that over 40 percent of cellular subscribers still do not use mobile broadband, with the main impediment to wider adoption being affordability, according to Asif Aziz, the CCO of Jazz.
As per the GSMA, by 2023, the economic contribution of the mobile industry in Pakistan will reach $24 billion or 6.6 percent of the GDP.
The Ministry of Information Technology and Telecommunications, Pakistan Telecommunications Authority, Jazz, and other players in the industry are committed to making this a reality by working together to provide broadband in every household and a smartphone in every hand, said Aziz.
Highlighting the importance of smartphones as a crucial enabler in today’s technology-driven world, Asif pointed out that smartphones and broadband are giving rise to a new digital economy that is allowing people to connect with the world and earn their livelihoods through numerous opportunities.
“From starting businesses to launching home-cooking channels, mobile broadband has a transformational power to positively impact the lives of millions. This also helps us build our IT exports and puts Pakistan on the map for tremendous growth.”
Pakistan’s telecom sector is the highest taxed in the world. With 19.5 per cent GST and 15 per cent WHT, using broadband costs telecom users 34.5 per cent in taxes alone. Moreover, hefty import duties on smartphones further discourage their use and adoption.
To facilitate the transition to mobile broadband for an additional 50 million people in the next three years, Aziz suggested that the government needs to discontinue the import and local production of 2G phones, prioritize local assembly of 4G-enabled smartphones, develop and implement a regulatory cover that enables telecom companies to offer smartphones on installments, and reduce withholding tax on essential telecom services from 15 per cent to eight per cent. This will help boost digital adoption and unlock tremendous socio-economic opportunities for the masses.
Copyright Business Recorder, 2022
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