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  • Jan 27th, 2004
  • Comments Off on PCOs mushroom growth irks pay card service providers
The pay card phone service providers have expressed serious concern over the growing number of extra-departmental public call offices (PCOs) in the private sector, adding that it would hamper investment in the telecom sector, sources told Business Recorder here on Monday.

Pay phone network has apprehended that government's telecom deregulation policy is not doing justice to the industry as, on the one hand, the authorities have encouraged the pay card phone service providers to maximise investment in the country and, on the other, the policy markers have started permitting opening of extra-departmental PCOs in the private sector on large scale.

Sources questioned who would prefer to use pay card phones in the presence of PCOs providing cheap service.

Quoting Pakistan Tele-communication Authority (PTA) annual report (2002-03), they said that the government has awarded 80 licences for different value-added services to promote telecommunication sector in the country.

Of this, 56 licences were issued for provision of easy and affordable card pay phone services to the customers across the country.

Uptil now rapidly growing telecom sub-sector has received over Rs 10 billion in both local and foreign investment.

This ancillary vendor industry's role in generating employment cannot be overemphasised as over 400,000 are directly earning their livelihood through its operations around the country, sources added.

"There is a sense of deprivation among the operators as, against a commitment, Pakistan Telecommunication Company Limited (PTCL) has started allowing setting up of extra-departmental PCOs", industry sources said and added that this single step would be instrumental in undermining the whole deregulation thrust of the government and the new telecom policy.

Sources admitted that telecom deregulation policy could be helpful in attracting investment in this sector provided an equally conducive environment was created.

A survey conducted by the stakeholders showed that despite many good aspects of the new telecom deregulation policy, there is some scepticism among the key players in the industry as they feel that in the recent past there has been some exhibition of unwillingness amongst public sector companies to let private sector play its dues role. "Introduction and implementation of investment-friendly policies would prove instrumental in building up sustainable national communication infrastructure," sources added.

Copyright Business Recorder, 2004


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