Pakistan’s internet ecosystem is facing a significant challenge due to the dominance of two telecom operators controlling the country’s access to global undersea fiber-optic cables, according to industry experts. The Wireless and Internet Service Providers Association of Pakistan (Wispap) has urged regulators to intervene and introduce competition to lower costs and improve internet speeds.
With over 240 million people, Pakistan remains reliant on Pakistan Telecommunication Company Limited (PTCL) and Transworld Associates (TWA) for its international connectivity, both of which act as intermediaries purchasing bandwidth and reselling it at marked-up prices.
Wispap Chairperson Shahzad Arshad highlighted that this arrangement has resulted in some of the highest internet costs in South Asia, making broadband expensive and inefficient.
Arshad pointed out that the cost of bandwidth is tied to the US dollar, making it vulnerable to exchange rate fluctuations. In 2024 alone, internet service providers (ISPs) saw profit margins shrink by 25 percent due to currency depreciation, yet PTCL and TWA continued raising prices.
He added that Pakistan’s average broadband speed remains significantly lower than neighboring countries, with speeds of 20-30 Mbps compared to Bangladesh’s 50 Mbps, which is available at half the price.
The country’s internet infrastructure also remains fragile, as seen in 2023 when a single undersea cable failure caused nationwide disruptions. Wispap has proposed several measures to address these issues, including establishing new internet gateways in cities like Gwadar to reduce reliance on Karachi’s connectivity hub, a model similar to Brazil’s diversified system.
The association also suggests negotiating bandwidth deals in rupees instead of dollars, as Malaysia has done, and allowing ISPs to collaborate in purchasing bandwidth directly from global providers, following South Africa’s approach.
Another key recommendation is the creation of independent internet exchanges to reduce dependency on international bandwidth for domestic traffic and the enforcement of antitrust regulations to prevent monopolistic practices. While Pakistan is set to receive additional bandwidth with the upcoming Africa-1 cable, Wispap warns that without reforms, the new capacity will only benefit the existing duopoly.
With nearly 40 percent of Pakistan’s population still without internet access, industry experts believe breaking the current bottleneck could significantly boost economic activity. Wispap estimates that lower broadband costs could double the country’s freelancing revenue to $2.5 billion by 2030 and accelerate startup growth.
Arshad stressed that this is not just about internet access but about unlocking Pakistan’s digital potential. He urged the government to introduce policy reforms that encourage competition, warning that failure to act would leave the country’s digital economy under the control of a tightly held duopoly.
