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Share of Telecom Sector in GDP increased

Telecom sector during financial year 2003-04 has shown record growth as its share in overall GDP has increased upto 1.93 percent and its share in total Foreign Direct Investment (FDI) counted upto 22 percent while 0.33 million new employment opportunities have been created.  With these positive trends, telecom sector of Pakistan is being considered as one of the most vibrant and lucrative sectors of the country. 

According to the official statistics, total telecom revenues reached Rs.110.05 billion during the year 2003-04 which were Rs.91.1 billion during the last year, showing a significant increase of 21 percent.  Revenues from each segment of the sector improved whereby mobile sector had highest revenue growth of 55 percent during the year 2003-04.  Combined revenue of four cellular mobile operators reached to Rs.21.4 billion during 2003-04 as compared to Rs.13.8 billion in the year 2002-03 exhibiting an increase of 11 percent.  Revenue growth in the basic telephony sector remained slow this year due to the fact that people have been switching over to mobile services.  Listed telecom companies including Telecard, World Call Communication and World Call multimedia showed revenue increase of 52%, 44% and 59% respectively.  Industry comprising telecom manufacturers and vendors showed positive trends in total assets, where total assets of the industry increased by 18%.

It is hoped that this trend will continue in the next year.  Over $ 2 billion investment is expected by major telecom operators including mobile phone operators during 2004-05. Telenor & Warid are investing $ 400 million and $ 645.5 million in the year 2004-05 respectively.  LDI operators DV Com and Red Tone have embarked on the plans to make investment of about $ 76 million during the year 2004-05

It is pertinent to mention that PTA collected over Rs.30 billion from licensing of new mobile, fixed line services and also Rs.15 billion alone from the auction of spectrum for WLL services.

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