Saturday , March 6 2021

The tax on the telecommunications sector increased by 129% in FY20: PTA

  • The PTA says data consumption in the country increased by 77% in FY20 due to coronavirus locking
  • PTA says total broadband subscriptions in the country have risen 175% in the last five years
  • The PTA says Pakistan has the lowest affordability of telecom services in the region

ISLAMABAD: The increase in the use of telecom services during the lockout of the coronavirus has led to an increase in the tax contribution by 129%, with the sector in the fiscal year 2019-2020. Paid Rs 278 billion, News reported quoting PTA report.

“The sharp increase in demand for telecom services due to locking has resulted in a significant growth not only in the subscriber base but also in the use of telecom services. Today, data usage is 4,498 fifths bytes (FG2020) compared to 2,545 fifths bytes (FY 2019) showing growth of over 77%, ”the Pakistan Telecom Authority (PTA) said in its 2020 annual report.

The report says “significant growth” would not have been recorded if the telecom sector had not been upgraded in time. The country currently has an international connectivity of 3.1 Terra bytes and about 47,000 cell locations, of which 90% are 4G locations.

The report says total broadband subscriptions in the country have also increased by 175% in the last five years.

The country’s broadband subscribers exceeded 90 million, and the user base increased by approximately 8% in FY2020. Pakistan has a total broadband penetration of 42.2% of FY2020.

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“Telecommunications networks are currently available to 87% of the population, and the PTA is working with operators to increase network coverage for the remaining 13% of unsuspecting people in the country,” the report said, adding: “Total TV now stands at 82% mobile telephony subscribers and 2.2 million fixed telephony subscribers ”.

The report states that although foreign direct investment (FDI) across the economy was hit by global blockades in 2020, the telecom sector accounted for 25% or $ 623 million of total foreign investment in the country last year.

The report says that the total investments of local operators in the country increased by 14.25%, and a total of 734 million US dollars were invested, while the total revenues from the telecommunications sector in FY 2020 rose to Rs 537 billion with most of the money generated by the mobile sector .

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The affordability of telecom services in the country has been said to have improved over the years and currently broadband access prices per GB were only $ 0.20, adding that they are the lowest in the region.

The report states that the government’s tax collection has also increased due to the System for Identification and Registration of Devices (TIRBS) for the collection of headphone import taxes. Local production of mobile devices has revived the telecom ecosystem, the growth of local production of 4G devices has exceeded 34%.

5G test conducted in Pakistan: PTA

The regulator said the country has also witnessed 5G services, making it one of the few countries to test the technology in South Asia.

“PTA aims to auction the spectrum of LTE and VoLTE services in 2021 as a precursor to 5G. The regulator is also preparing for a spectrum auction for high-speed broadband services in AJK and GB, ”the report said.

The PTA has granted 110 licenses for various telecommunications services this year and issued 91 start-up certificates to operators, the report added.

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The PTA also conducted QoS surveys across Pakistan for data, voice and SMS services, and operators were instructed to take corrective action where they were worse, the report said, adding that the PTA also conducted a series of successful raids against illegal VoIP this year. settings to combat gray telephony. .

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