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3G in Pakistan

3. March 2011

iphone_3g The first pre-commercial 3G network was launched by NTT DoCoMo in Japan branded FOMA, in May 2001 on a pre-release of W-CDMA technology. The first commercial launch of 3G was also by NTT DoCoMo in Japan on October 1, 2001, although it was initially somewhat limited in scope; broader availability was delayed by apparent concerns over reliability. The second network to go commercially live was by SK Telecom in South Korea on the 1xEV-DO technology in January 2002. By May 2002 the second South Korean 3G network was by KTF on EV-DO and thus the Koreans were the first to see competition among 3G operators.

Before we delve in to the great debate about 3G in Pakistan let me first very briefly cover 3G and its main advantages. The common man knows little else than the fact that he will be able to make video calls after shifting to 3G. That is certainly true, but 3G is a little more than that. It will offer the high data rates to the end users besides the much trumpeted about video calls. Theoretically it is supposed to offer broadband wireless data at around 2 Mbps while being stationary and, and 384 kbps while on the move. The main advantage would be the ability to make voice and video calls, traditional fax service, multimedia services (including hi-resolution video), ability to access the Internet, online entertainment, video conferencing, virtual banking services etc. Imagine being able to this all while being on the move. Off course to the user this would mean changing his/her mobile phone.

 image Besides all this, the network will still be backward compatible with the old handsets. Meaning simply that buying a 3G handset is not a compulsion, not at least immediately, and user has the option of not using 3G services at all.

Whenever a new technology is introduced it takes time for the public to understand its utility and adopt it. In telecom however, things are a little different, primarily because people are generally aware of a new and upcoming technology much before its formal launch. 3G for instance was introduced in UK many years back. Elsewhere many EU countries have also shifted to 3G networks. In Pakistan there has been a lot of hype about 3G since the year 2005. Latest reports say that it is a matter of months now or even weeks. Actually there are three parties involved in the whole process; the PTA, the operators and the public. In the pre-launch stage PTA and the operators are involved whereas in the post-launch stage it will largely be the users who will decide its fate. In shifting to 3G the Core network infrastructure largely remains unchanged, it is the Base Station Controllers and the Base Transceiver Station (cell sites) which will require hardware upgrades.

This is where the operator’s role comes in to play. It will be a time consuming project because the number of cell sites is going to be in thousands for most if not all of the operators. But before this happens there is the spectrum which is going to be auctioned for the formal award of license for shifting to 3G. PTA we are told is going to grant three licenses from the existing five operators. The matter has to be ratified in the cabinet and the base price for auction would also be decided by the same body. This explains the delay, if anything else.

The number of mobile phone users in Pakistan is around 80 million according to PTA and a sizeable number of this population resides is in the urban areas. The figure is expected to cross the 100 million mark by the year 2010. If we look at the picture rather objectively 3G will be much in demand by almost anyone and everyone; the educated class, business community, professionals, students etc for gaining access to high speed Internet while the major attraction for the general public including the uneducated class will be the ability to make video calls. Our reliance on Google, the need to check E-mail every few hours, the need to stay connected using IMs, social networking, blogging, micro-blogging etc will become easier with the arrival of 3G, as it will make availability of such services on the go.

The urban populace will embrace this technology with open arms, if the posts on the various forums are an indicator of the public’s eagerness. Besides all this anyone with an extra few thousand rupees today is seen proudly flouting a 3G phone. I distinctly remember buying a brand new Nokia 6120 which happens to be a 3G handset about two years back. It has all the bells and whistles of a modern mobile phone, a great camera, good sound system, Symbian OS, twin camera, external memory option and what not. Today most mobile phones that cross the Rs.10000 mark are 3G compatible.

But what good is a 3G phone when there is no operator offering 3G services in Pakistan? Come 3G and the public is going to make the switch. According to Business Monitor International 6% of all mobile phone users will have a 3G phone by the end of 2010, which in any case is not a disappointing statistic to start with. A complete or even a partial shift will take considerable time, however, for that to happen we have to take a start and that sadly is lagging. These delays are not good for the telecom sector as its growth will suffer, they are not good for the public as the users will be deprived of modern services and off course they are not at all good for the Government as it will loose the much expected revenue that it can and will earn through taxes. The government needs to take this fact in to consideration for the overall amelioration of all; somebody has to wake the PTA and GoP out of its slumber as delays are counterproductive for all, a situation where everyone is a looser. We really hope this happens soon enough, till then the best we can do is wait, wait and wait some more.

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