Transforming the Fixed-Line Network Business: A New Model for Inclusive Growth in Pakistan

Introduction

The fixed-line network carrier business in Pakistan has long faced challenges in expanding its reach and providing reliable, high-quality internet access to the entire population. While Pakistan Telecommunication Company Limited (PTCL) boasts the largest footprint in the country, millions of users still rely on local internet service providers (ISPs) or independent agents who extend network coverage using WiFi routers. These agents often operate through unregulated and unconventional channels, leading to business losses for the carriers and limited access to quality services for end-users. This article proposes a new business model to address these challenges by integrating local agents into the official distribution network, offering commercially viable packages tailored to meet the unique needs of these communities.

The Current Landscape

As someone who has been involved in strategic projects within the carrier fixed-line business in Pakistan, I have witnessed firsthand the difficulties and costs associated with obtaining Frequency allocation board approvals and securing Right of Way (ROW) for deploying last-mile fiber networks. The process is not only time-consuming but also financially burdensome, making it challenging for operators to expand their network footprint rapidly. Despite PTCL's extensive infrastructure, a significant portion of the population remains underserved, particularly in rural and remote areas where laying physical networks is not economically viable.

Local ISPs and agents have stepped in to fill this gap, but their operations are often outside the regulatory framework, leading to several issues:

• Quality of Service: End-users often experience subpar internet speeds and unreliable connectivity.
• Revenue Loss for Carriers: The carrier networks are unable to capitalize on these markets, leading to potential revenue losses.
• Lack of Customer Support: Without access to official carrier networks, customers lack adequate support, leading to dissatisfaction.

Proposed Business Model: Inclusive Reseller Partnerships

To address these challenges, I propose a new business model that integrates local agents into the official distribution network of fixed-line carriers. Instead of viewing these agents as competitors or unauthorized resellers, carriers can bring them into the fold as official partners. Here's how this model could work:

1. Official Reseller Program:
2. Tailored Commercial Packages:
3. Shared Infrastructure:
4. Revenue Sharing and Incentives:

Benefits of the Proposed Model

The proposed business model offers several benefits, both for the carriers and the broader population:

1. Expansion of Network Coverage:
2. Increased Revenue for Carriers:
3. Improved Quality of Service:
4. Empowerment of Local Entrepreneurs:
5. Broader Social Impact:

Conclusion

The fixed-line network carrier business in Pakistan is at a crossroads. While traditional models have struggled to keep up with the demand for high-quality internet access, an inclusive strategy that integrates local agents as official resellers offers a promising solution. By adopting this model, carriers can not only expand their reach and increase revenue but also contribute to the broader goal of digital inclusion, ensuring that every Pakistani has access to the benefits of the digital economy.