Telecom sector in turmoil: Per user revenue in Pakistan hits world's lowest at $0.80

February 23, 2023 (MLN): The financial crisis in the telecom sector of Pakistan has intensified, with per-user revenue hitting rock bottom at $0.80, the lowest level in the world.

This alarming number has caused the heads of Jazz, PTCL, and Telenor to express their deep concerns to the Minister of Information Technology.

The telecom sector has been facing a tough time for a while now, and the situation has only gotten worse.

With all costs in dollars, the decline in revenue has made it difficult for mobile operators to stay afloat, as the revenue per user needs to rise above $1.5 to remain active. This has put the entire telecom sector in jeopardy.

Adding to the woes, the Pakistani rupee's value has fallen drastically, making it impossible to pay the license fee in dollars.

Rising interest rates, fuel, and electricity prices have also made the cost of doing business skyrocket, putting immense pressure on the already struggling industry.

The financial crisis has led to LC closures, further exacerbating the situation, and imposing restrictions on mobile rate hikes. This could severely impact the quality of service, leading to unhappy customers and a potential loss of business.

The telecom sector is a vital part of Pakistan's economy, providing much-needed connectivity to millions of people across the country.

To address the situation and support the industry to ensure that it remains active and sustainable, the government must take urgent action.

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