Shift Towards Next Generation Networks (NGNs) for Sustainability: Evidence from an Emerging Economy

Shift Towards Next Generation Networks (NGNs) for Sustainability: Evidence from an Emerging Economy

Abdul Rafay (University of Management and Technology, Lahore, Pakistan) and Arsala Khan (University of Management and Technology, Lahore, Pakistan)
Copyright: © 2016 |Pages: 12
DOI: 10.4018/JCIT.2016070101

Abstract

This paper examined the shift towards the Next Generation Networks (NGNs) like 4G from 2G and the role of technology for sustainable development in the telecommunication sector of Pakistan. WARID was one of the four cellular companies of Pakistan. All the big players in the market had auctioned for 3G/4G licenses but WARID remained distant from the process of spectrum auction. The paper investigated issues and decisions involved when WARID decided to launch 4G/LTE nationwide due to its technology neutral license. It was also studied that how this decision was necessary and beneficial for all internal and external stakeholders of the organization in terms of sustainability, customer satisfaction, technological advancements etc. The study used secondary data as well as unstructured interviews where interaction with the management/employees of the organization was deliberated to stimulate discussions and opinions.
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Telecom Industry Of Pakistan

General Overview

Industry analysis requires careful examination of four basic things i.e. type of industry, nature of the technology, customer requirements/expectations and product life cycle (Porter, 2008). The cell phone sector of the telecommunication industry is of high velocity, technology of the sector is rapidly changing, customer expectations are high and fast evolving and product life cycles are short in terms of new packages and services.

The telecom sector is one of the fastest growing segments of Pakistan’s economy and is a key driver to the growth. There are an estimated more than 100 million cellular8 users and the sector directly or indirectly employs approximately 1.36 million people. Due to high growth rate, this industry has become back-bone of Pakistan’s economy. It is providing many employment and investment opportunities due to high revenues generated via huge number of users of telecom services. Along with opportunities, this industry also provides vast facilities to communicate and connect globally in better, reliable and modern manner. Today, the telecommunication sector is one of the best developed technology sector of Pakistan.

Pakistan’s telecommunication market is one of the hottest in the emerging economies. Pakistan is still an unsaturated market and with the falling cost of handsets there are plenty of new subscribers to go for. But eventually as in saturated markets, if mobile operators want to avoid simply competing on price, they will have to compete on superior services, innovative features and ease of use. Due to current developments of market convergence among Internet, cable and telecom industry there is a need of regulatory restructuring for creating a platform for timely relocation towards next-generation-networks (NGNs) like 4G9 and beyond (Xia, 2011). For a country like Pakistan, it is necessary to analyze its market regulations and policies and other technological advancements for sustainable development. In developing countries like Pakistan, market analysis yields many factors creating an impact on 3G10/4G networks including the institutional aspects as well as indirect aspects that have impact on regulatory policies (Xia, 2012).

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