Wateen closes 90% BTSs due to non-feasible business

Author: Abrar Hamza

KARACHI: The fixed and wireless broadband has almost lost its market share due to enormous growth in competitive mobile market as most of the wireless local loop (WLL) operators are closing their services in various parts of the country, said the Pakistan Telecommunication Authority (PTA).

In 2008, Wateen Telecom had introduced WiMax broadband internet in Pakistan, but just after eight years, Wateen, the introducer of WiMAX technology in the country, has closed more than 90 percent of its base transceiver stations (BTSs) country wide due to constant losses.

Pakistan Telecommunication Company Limited (PTCL) is also in process of closing VPhone services country wide as they intend to shift their wireless network towards deployment of Long Term Evolution (LTE).

The PTA, in its framework on regulatory remedies and solutions for service provision by WLL operators said another alarming trend of WLL decline is the closure of BTS sites due to non feasible business. Most of the WLL operators are closing their services in various parts of the country and maintaining limited number of BTS for limited customers merely to fulfill license network roll out requirements.

The Market Share of WLL in broadband proliferation is persistently very limited due to enormous growth in competitive mobile market. Despite the fact that WiMAX and CDMA services were introduced over a decade ago, mobile broadband i.e. 3G and 4G has taken 94 percent share in the broadband market within three years of introduction. In such a scenario WLL sector are no-where near to threaten the cellular industry. Though the WLL operators have offered lucrative packages but the customers’ demand is more inclined towards the mobile services, added PTA. PTA as a regulator has to maintain a balanced approach for all the telecom sectors so that the right of licenses and consumers to be protected through fair regulatory regime.

After consultation with stakeholders, the PTA has issued framework on regulatory remedies and solutions for service provision by WLL operators.

According to the PTA, the framework is aimed at focusing on possible options for regulatory remedies for limited mobility services. With the increasing demand of high speed mobile broadband networks, technological advancement on the standards developed by ITU, IEEE, ETSI, 3GPP, 3GPP2 and the regulatory provisions on limited mobility, various solutions are being explored to ensure an acceptable outcome for fixed and mobile sector.

Cellular mobile operators (CMOs) are of the considered view that limited mobility area should not be redefined as there are no technical constraints in its implementation with the advancements in technology. Moreover the WLL operators have not followed limited mobility in the past which needs to be strictly implemented through this framework. The low WLL subscriber penetration is only due to lack of business plan and commercial models and not because of restriction on mobility. PTA should clearly define distinct boundaries for WLL and cellular services, said CMOs.

However WLL operators insisted on redefinition of Limited Mobility to Region, city wise to enable WLL industry to flourish and allow them using CPE devices.

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