If someone asked this question a decade ago, the answer would have been a positive yes. However, today’s scenario is quite different. Before delving deep into the current situation, let’s go back in time.
A decade ago, not only were mobile sets so expensive that they could only be afforded by a small niche but at the same time the call rates were also considerably high.
Over time, technological advancements, surge in demand and mass production of mobile sets made it possible for the mobile set manufacturing companies to sell their mobile phones at lower prices as they could earn more profits from higher sales volumes. These changes made mobile phone a more affordable commodity for the masses.
Massive increase in cellular subscription over time and tougher market competition also made it possible for cellular service providers to offer lower call rates. As a result, the total cost of ownership for mobile phones declined making it possible for the lower strata of the society to enjoy the convenience of communication rendered possible by the technology.
Today people from almost all income segments own a mobile phone. Mobile phone is not just a means of communication for people any more. It has become a smart way of doing business and improving the living standard of the low-income group. A case in point to understand this additional benefit is a study conducted in
Although, no such case-study has been conducted in
To provide support to the local farmers, Mobilink launched Mobilink Kisan service to offer produce prices and real-time weather updates to the farmers. If farmers had no mobile phone, they wouldn’t have been able to take advantage of such valuable services.
Because communication today greatly facilitates people’s earnings, it has a direct positive impact on a country’s GDP. According to a study conducted by London School of Economics, an increase of 10 mobile phones per 100 people can increase the GDP growth of the country by 0.59% more than a country without mobile phone penetration.
However, there are certain issues that have slowed down the pace of telecom industry’s growth. While the most obvious and less controllable ones are the global economic recession and double digit inflation, the other more harmful and at the same time controllable factors involve increase in taxation and eventually flourishing of black market.
Increased taxes have made mobile phones more expensive for the population. A few months back, government of
It is unfair to the less-privileged segment of the population to bear the greatest burden of import duties. Mobile phones below PKR 5,000 should be exempted from import duties because they play a vital role in facilitating the livelihood of a common man and must not be classified as luxury items.
The telecom industry can only prosper if the government provides required support to the cell phone manufacturers and exempt low-cost phones from high import duties.
Written by Danish Hassan
