First thing first, referring to its recognition as an industry, he rightly pointed out that would mean entitling cellular phone companies to all the benefits the industrial units enjoy in respect of taxes, duties and tariffs.
As for expectations of the government from the new policy, which would allow only two new companies in the sector, significant were references to prospects of new investment of $1.5 billion in the next three to four years, besides helping create 12,000 to 15,000 additional jobs.
These expectations are evidently based on the performance thus far of the four cellular units functioning in the country.
As such, reasonable should appear the ideas of a big push to the sector which the new policy measures are aimed at providing.
Again, since most of the four companies presently in operation, have been making new investment to expand their coverage, the addition of another two companies through transparent bidding, hopefully in the next two months, can provide a fillip to the sector's rapid growth with creation of additional demand for mobile phones over a widening area, thereby leading to sharpening competition among the companies.
However, to ensure enhanced coverage of telephone facilities in far off corners of the country, it will be made obligatory for the new companies to cover 70 percent of tehsil headquarters in the next four years and at least ten percent of the population in the tehsils of each province.
Needless to point out, meeting this target will depend a great deal upon factors beyond the scope of the cellular companies.
More to it, the companies will have to give a performance bond of $30 million as guarantee of their compliance with rollout obligations, besides contributing to R&D fund.
Notable among the key objectives of the policy are broader coverage at affordable prices, increased Tele-density, enhancing private investment in cellular mobile, recognising the rights and obligations of operators and fair competition among them, adopting uniform policy and regulatory regime in line with best international practices.
It will be noted that the minister hoped that the present Tele-density of only two percent would go up to 10 percent, hoping that tax revenue would increase from Rs 3.4 billion to Rs 16.9 billion, even after the withdrawal of the activation tax of Rs 2,000, which the existing companies, understandably, view as a hindrance to expansion.
The policy also allows the companies direct access to their consumers within their region. This will certainly free them of the compulsion of going through the PTCL channel, while allowing the consumers to change their service providers and yet retain old cellular phone numbers.
As for the difference made by the new policy, it will become evident after its formal announcement, following adoption by the parliament.
However, some idea of it may be had from the observations of the minister at the press conference.
For one thing, the licensee will have 15 years tenure during the first five years of which there would be no change in policy.
The successful bidder will be required to deposit 50 percent of the bid amount in the first year and the remaining 50 percent in 14 years.
The existing mobile service licences would be renewed under the new policy, but licensees may opt for the new policy even for the remaining term of their existing licences so that all mobile companies may operate under the same policy forthwith.
Moreover, certain benefits are being made available to existing licensees immediately opting for the new policy. But the existing licensees will be required to pay the same charges for frequency spectrum as may be set through bidding for new licences.
The policy, certainly will be seen as having a progressive approach, with a keen eye on catching up with fast upcoming technological developments in the field of mobile cellular communications.
However, accomplishment of the desired results will eventually depend upon the extent to which it succeeds in breaking away from the provisions and practices that have been identified by the existing operators as hindrance in the way of their rapid and smooth growth.