Pakistan Telecommunication Authority (PTA) has released new draftregulations this week that require all phone companies to obtain a special10-year license before they can operate in the country. This license willhelp Pakistan build a localized smartphone industry.
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As part of this license, phone companies can start assembling handsetcomponents within the country, but they will be required to use morePakistani materials for assembly over time. At first, the companies willonly be required to use packing materials that are made in Pakistan, only2% in the beginning.
The next year, they will be required to assemble 10% of their batteries andmotherboards using Pakistani materials and 8% of their displays and plastichousings as well.
Additionally, this license requires the companies to teach local operatorshow to build their own Smartphones linkthree years of operation. This will include teaching them about chipsetdesign and the manufacturing of motherboards, displays, phone accessories,etc.
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The telecom regulator has said that it aims to promote local manufacturingand assembly in Pakistan and discourage smartphone smuggling. It wasestimated that nearly 40 to 60% of smartphones in Pakistan are smuggled.
Pakistan will no doubt be facing tough competition from manufacturinggiants such as China and Vietnam but hopes to attract major companies withlow tax rates. No major companies have expressed intentions to buildfactories in Pakistan so far, but Samsung may be looking to open anassembly plant soon.
