Telecommunications Industry in Pakistan

942 WordsFeb 16, 20184 Pages
Firm strategy, structure and rivalry constitute the fourth determinant of competitiveness.[2] The way in which companies are created, set goals and are managed is important for success.[2] But the presence of intense rivalry in the home base is also important; it creates pressure to innovate in order to upgrade competitiveness. For years Pakistan’s telecom sector was stagnant because of the monopoly that was created by the “Pakistan Telecommunication Company Limited (PTCL)”. Then the telecom industry was liberalized, privatized and deregulated and a major boom was apparent. Policy reforms and their correct implementation showed that the governments were keen to develop the sector. The industry was able to attract hefty sums of Foreign Direct Investment (FDI), which is the basis of this sector. With the governments keen to provide friendly environment to the investors and solid steps taken by the Pakistan Telecommunication Authority (PTA), the regulatory body for the telecom sector, the confidence of the investors largely increased and thus Pakistan was able to attract considerable investments. The satisfaction level on the party of investors was to such an extent that Pakistan was considered to be 19th out of 175 countries in attracting FDI. The telecom industry posted its highest-ever revenue in the fiscal year 2013. Total investment in the sector — at $472 million — was a major improvement from the $240.3 million invested in the prior year. And consolidation is also
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