As Pakistan’s telecom landscape stands at a crossroads, Telenor Asia’s Executive Vice President Jon Omund Revhaug has called for strategic consolidation and innovation to reignite the country’s digital future. Concluding his first visit to Pakistan, Revhaug highlighted the country’s deep-rooted reliance on mobile connectivity — from rural farming communities to tech freelancers — and the critical role it plays in national progress.
A vivid anecdote he shared underscores the widespread reach of mobile services: in Thar, Pakistan’s largest desert, camels now wear their owners’ mobile numbers around their necks instead of traditional bells — a modern twist that shows how connectivity has permeated even the most remote corners of the country.
Telenor Pakistan recently marked 20 years of operations in the country, having extended mobile coverage to over 80% of the population. This milestone highlights the operator’s contribution to various sectors including agriculture, banking, and the ever-expanding freelancing ecosystem. However, challenges persist. Despite these advancements, only 59.3% of the population currently subscribes to mobile internet services.
One of the major hurdles to growth lies in the sector’s financial sustainability. Pakistan’s average revenue per user (ARPU) remains among the lowest in the world — under US$1, compared to a global average of US$8. This disparity puts immense strain on local telecom operators who must cover foreign-denominated expenses like spectrum licensing and equipment imports.
Revhaug emphasized that unlocking digital growth will require scale, and consolidation is key. Drawing parallels to the Malaysian and Thai telecom sectors, he pointed to successful mergers such as Celcom with Digi and True Corporation with dtac. These consolidations have enabled companies to enhance network coverage, optimize spectrum use, and offer improved digital services.
In Pakistan, Telenor’s proposed sale to PTCL — the nation’s largest integrated ICT company — aims to mirror these international successes. The merger could create a stronger number two player in the telecom market, combining Telenor’s 20% market share with PTCL’s 12% to form a 32% share entity. This would place the joint entity behind Jazz (with 44%) but ahead of Zong (estimated at 25%).
Such a move would not only provide financial stability to invest in advanced technologies like 5G, AI, and cloud computing but also spur healthy market competition. In Malaysia and Thailand, post-merger entities like CelcomDigi and True Corp have expanded 4G and 5G coverage significantly while introducing digital convergence services such as smart home bundles, cybersecurity solutions, and enterprise cloud systems.
The success of these models abroad strengthens the case for Pakistan’s telecom sector to follow suit. As Revhaug stated, creating scalable and sustainable telecom infrastructure is crucial for achieving Pakistan’s “Digital Pakistan” ambitions. With the government retaining majority ownership in the new entity, the potential for public-private synergy could bring long-term benefits for both industry and consumers.
In closing, Revhaug called for stakeholders to recognize that a financially sound telecom sector is the backbone of digital transformation. Without robust investment and scale, Pakistan risks slowing down on its path to inclusive digital growth. With consolidation, innovation, and government support, the country’s telecom future can be reignited — delivering impact far beyond mobile connectivity.
