NA panel irked over poor mobile services, seeks efforts to bring Apple to Pakistan

ISLAMABAD: The National Assembly Standing Committee on Information Technology and Telecommunication on Thursday expressed serious concern over the poor quality of mobile and internet services and decided to summon telecom companies (telcos) to seek direct answers over persistent network problems.

The committee was also informed by an official of the Engineering Development Board (EDB) that efforts were underway to seek tech giant Apple’s entry into Pakistan’s manufacturing market.

In its proceedings, the committee expressed concerns over the quality of mobile services, with chairman Aminul Haque remarking that subscribers had to dial a number three times just to make a call.

“The quality of mobile and internet services is deteriorating day by day after the spectrum auction instead of any improvement,” the Muttahida Qaumi Movement-Pakistan (MQM-P) lawmaker said.

The chairman then questioned the PTA about the fines imposed during the last six months, noting that the regulator issued show-cause notices and warning letters, but did not impose sufficient fines on telecom companies.

Committee members Zulfiqar Ali Bhatti, Ahmad Ateeq Anwar, Sadiq Memon and Dr Mahesh Kumar stressed that the root causes of poor mobile service were not being addressed and criticised the PTA for repeatedly giving the same response without improving the situation.

Committee member Shazia Fareed recalled she had received virtually no mobile signals during her stay at Islamabad’s Pakistan Institute of Medical Sciences (Pims).

The committee made it clear that the PTA should perform its duties and inform the parliament if there was any obstacle preventing it from taking action. Members proposed summoning representatives of telcos and seeking explanations from them directly.

Meanwhile, PTA officials assured the committee that the authority continuously monitored mobile and internet services and conducted surveys in cities to assess service quality.

They said telcos were given 30 days to improve their service quality and networks, while the PTA could impose a maximum fine of Rs350 million.

PTA officials further said that telcos often obtained stay orders from courts against penalties, and that several cases were pending before the courts. They added that the Telecom Tribunal was functional, but its decisions had also been challenged before courts.

The authority maintained that service quality was improving after the launch of 5G and that rollout targets for telcos had been clearly defined. A PTA member informed the committee that the number of 5G sites in Karachi was increasing and had reached 279.

IT Secretary Zarar Hasham Khan told the committee that telcos had installed equipment meeting international standards, and the government had prioritised improved service quality over revenue generation during the 5G spectrum auction held in March.

The committee decided to summon telcos at its next meeting and directed the PTA to provide details of fines imposed on them and the amount recovered.

Committee seeks efforts for Apple’s entry in Pakistan

The committee also discussed efforts to bring Apple to Pakistan, with Haque questioning why the tech giant could not enter the country’s market when other international mobile companies were already operating.

EDB Chief Executive Officer Hammad Mansoor told the committee that negotiations were under way to bring Apple into the country.

He added that efforts were also being made to arrange a meeting between Prime Minister Shehbaz Sharif and Apple CEO John Ternus during the former’s upcoming visit to the United States.

Mansoor said that an Apple store had already been established in Pakistan and expressed optimism that the company would also enter the country’s manufacturing market.

The EDB chief informed the committee that 37 companies were currently manufacturing mobile phones in Pakistan, and that more than 35 million devices had been manufactured locally so far.

The committee was told that all major smartphone companies were manufacturing phones in Pakistan, except Apple.

Haq directed the IT ministry and the PTA to come prepared with detailed information at the next meeting, and to continue efforts to bring Apple to Pakistan.

Mobile phone tax issue discussed

The committee also discussed the issue of taxes on imported mobile phones, and the potential payment of levies in instalments.

A PTA member clarified that the authority had no role in placing mobile phone taxes or in developing a mechanism for payment of such taxes in instalments, as all the tax matters were the domain of the Federal Board of Revenue (FBR).

Committee member Syed Ali Qasim Gilani said he raised the issue and also took up the matter of allowing consumers to pay the tax in instalments.

He said the FBR had informed him that the mechanism was available with the PTA, but questioned how the authority could develop an instalment mechanism when it did not collect the tax.

The IT secretary said the issue of mobile phone tax instalments was not in his knowledge and assured the committee that he would discuss it with the PTA chairman and brief the committee, which sought a detailed briefing on the matter at its next meeting.

“Our vision should be smartphones for all,” Haque said, pointing out that a good quality phone was available in Pakistan for around Rs60,000.

Telecom sector seeks industrial tariff

Additionally, the committee also discussed the issue of electricity supplied to telecom infrastructure and the demand for industrial tariffs for telecom companies.

IT ministry’s Muhammad Jahanzeb, also a committee member, informed that his ministry had requested the Power Division to ensure uninterrupted electricity to telecom towers, noting that the sector had been declared an industry in 2004, while the 2021 Finance Act had also recognised telecom as an industry.

The ministry also informed the committee that interruptions in telecom services caused by load-shedding were affecting freelancers and a large segment of the population.

However, the National Electric Power Regulatory Authority (Nepra) had refused to extend industrial tariff to the telecom sector, he said.

“Twenty-two years have passed since 2004, but a government institution is still not accepting it,” PPP’s Memon remarked.

The IT secretary said the government had tried to protect telecom towers from load-shedding, but the Power Division had made it clear that providing dedicated feeders to telecom towers was not possible.

Haque maintained that the telecom sector should be granted the status of an industry and announced that Nepra would also be summoned before the committee.

The committee decided to summon Nepra and Power Division officials to discuss the issue.

It also directed the IT ministry to complete the required paperwork regarding the industrial status and tariff issue.