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Published on September 24th, 2007 | by Babar Bhatti

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Economic and Social Benefits of Mobile Services In Pakistan






It is widely accepted that mobile phones have made a tremenedous impact on Pakistan’s economy but there have been few if any formal studies about this. Earlier this year GSM Association asked Deloitte Consultants in UK to undertake a study (covered in this post) about the economic and social benefits of mobile telecom services in Pakistan. The main thrust of the study was to find the impact of elimination of taxes on mobile subscription growth. Recently GSMA shared the full report with me. This impressive report has interesting analysis, statistics and charts based on first-hand research, interviews and data from mobile companies and other market intelligence sources. I will share the key findings in a series of posts. To start with, let me highlight some of the interesting points about the Mobile telecom sector of Pakistan:

  • In 2006 the sector contributed a total of PKR312 billion to the economy, over 5% of GDP
  • Mobile sector employed 210,000 Pakistanis in 2006
  • Gain in productivity. PKR94 billion of value add to domestic economy in 2006
  • Consumer surplus increased by PRKR42 billion between 2003-06
  • Pakistan has one of the highest tax burdens on mobile services in Asia Pacific.

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Upcoming posts in this series will include:
Mobile Value Chain in Pakistan, Supply and Demand side impact of Telecom on Pakistan’s Economy, Taxation of Mobile sector, How activation and sales tax impacts mobile growth and Tangible and Intangible Benefits of Mobile Telecom.


About the Author

Founder and Editor of TelecomPk.net



0 Responses to Economic and Social Benefits of Mobile Services In Pakistan

  1. Ahmad Nadeem Syed says:

    I am interested to get report by Deloitt titled “Economic and Social Benefits of Mobile Services In Pakistan.

    Can anybody help me.

    Regards

    Ahmad Nadeem Syed

  2. Pingback: State of Telecom Industry in Pakistan » Revenues From Telecom Sector In Pakistan

  3. Pingback: State of Telecom Industry in Pakistan » Summary Of Mobile Communications Benefits

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  6. Pingback: State of Telecom Industry in Pakistan » Mobile Value Chain For Pakistan

  7. Babar Bhatti says:

    Brough – the tax calculations are based on the report. Please note that the activation tax is not a burden on the users as mobile companies pay it. However it becomes part of the total cost of the ownership. I’ll soon post more on this.

    You nailed the effect of lowering activation charges in your 2005 post.

  8. I’m interested in your assertion that “Pakistan has one of the highest tax burdens on mobile services in Asia Pacific.” Are you sure? Can you point me at data?

    I was under the impression that India had one of the highest regulatory burdens on mobile phone service, including license fees, spectrum charges, universal service fees, etc. But my India and China data is from 2005 and I have no similar data on Pakistan.

    I have no doubt that the reduction in the activation tax contributed to mobile phone services taking off in Pakistan ~2004 as I commented in 2005:
    http://blogs.nmss.com/communications/2005/12/more_on_telecom.html

    And that each tax cut resulted in more total government revenue (due to subscriber growth):
    http://blogs.nmss.com/communications/2006/09/cutting_telecom.html

    Thanks for your blogging which I continue to find extremely interesting!

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