Future or Funeral of Mobile Phone Industry in Pakistan

Mobile phones once were thought of as only indispensable in the rich world but the way mobile phones are transforming lives in low income countries it has become an essential and indispensable tool for socio-economic development. For many areas in Pakistan, having limited availability of communication roads, postal services, fixed line services, health services and financial services, Mobile telephony represents the first modern infrastructure of any kind. Mobile phone services have brought new possibilities and opportunities to both the urban and rural, the rich and poor, the young and old in Pakistan. With more than 119 million mobile phone subscribers and a penetration rate passing 70% it is one of world’s fastest growing markets. The penetration of mobile phones in Pakistan – especially to the poor in far flung areas – has done more to alleviate poverty than any number of aid programs combined.

The mobile telephony industry in Pakistan is booming and there is scope for far greater development. In recent times, however the action of the Pakistani government suspending mobile phone services across the country has outraged its users and seriously put in jeopardy many future investment plans. Telecom operators with billions lost in revenues on special occasions such as Eid festival or national events such as independence day celebrations are likely to pull out of investing. Senior officials of the mobile phone companies have expressed resentment over the blackout of mobile phone services and have threatened to postpone their plans of investing billions of dollars in 3G and mobile banking technology.

The habit of suspending of mobile phone services under the pretext of security risk and terrorism in Pakistan takes its origins from the volatile province of Balochistan where the government is fighting nationalist elements in an on going battle. Over the last couple of years, the government has been guilty of causing what many are calling “Blackouts” – suspending mobile phone services in most parts of Balochistan during occasions such as celebrations marking Independence Day and Defense day. Due to the small size of the Balochistan population, such draconian measures didn’t receive widespread attention or condemnation from either the media, civil society, or organizations protecting digital rights and civil liberties. Additionally, the blackouts’ financial impact on telecom operators was low enough that they were able to easily comply with government instructions for suspending service in the entire region.

Even though the past success of such a strategy is relatively questionable, the Pakistani government took the same approach on the Eid Festival in August when mobile phone users witnessed a blackout on a greater scale affecting millions of mobile phone users in Pakistan’s major cities such as Karachi, Lahore, Islamabad, Peshawar and Quetta. Shoppers were paralyzed, friends were disconnected, businesses were unable to order stocks on time – all of this resulting in losses while millions of people were unable to send Eid greetings to their loved ones.

One shopper termed the experience as traumatic: “We were at the same shopping mall but my wife and kids were somewhere else and we could not catch up with each other till morning”. Another local business man was furious as he was unable to contact with a manufacturer in time to order more supplies. “Eid is the only high peak business season in these distressing times and if we are unable to make money our families will starve”. Asad, a college student was fuming with the government’s decision to suspend mobile phone services this past August. “This (pointing to his iPhone) is the hub of my social life and the government has taken it away from me”. The use of mobile phones is so commonplace in Pakistan that it has become part of people lives to such an extent that they feel lost without it.

The mobile phone industry in Pakistan is already facing stiff challenges in the form of declining revenues, cut throat competition, customer retention, sim activation policies, rising operational costs and necessary investments required for rolling out 3G networks. To further frustrate the industry, the government has obscured its national security plan involving the temporary shutting down of entire networks on festivals.

According to industry estimates, the mobile phone sector incurred more than 3 billion rupees in losses after services were suspended on Eid-ul-Fitr in August with another 600 million rupees lost in September on Love Prophet Muhammad (PBUH) Day. Now the government has again announced to suspend mobile phone services in all major cities of Pakistan on Eid-ul-Azha which is to be celebrated across the country on the 27th of October 2012.

The Eid Festivals bring peak voice and sms traffic on all networks. A billion sms messages exchange traffic on networks and a 400 percent increase is seen in voice traffic. Telecom companies also need to invest in network infrastructure to cope with peak network traffic and minimize service outages along with investing in new packages and promotions to attract customers.

The recent actions in Pakistan suggest that the government may take mobile phones for granted and that concerns over internet censorship or issues with blackouts matter very little. We often forget how much these technologies have transformed and improved people’s lives for the better. Instead of further developing and promoting the mobile industry to be able to provide future 3G/4G services we are systematically pushing the industry towards its funeral. In times of great uncertainty and fear some people are constantly trying to curtail civil liberties in the name of fighting terrorism. We must confute them and show them that terrorism can be stopped without giving up liberty and to sum it up in the words of Benjamin Franklin: “Nations that have traded liberty for some temporary security measures deserve neither.”

Malala Yousafzai first gained attention at the age of 11 when she started writing a diary for BBC Urdu about life under the Taliban. Using the pen-name Gul Makai, Malala won international recognition for highlighting the brutality and atrocities of Taliban in Swat. After a military operation the Taliban were ousted from Swat valley in 2009, but her family regularly received death threats.

On Tuesday, the teenager was attacked by two armed men as she was returning home from school in Mingora in north-western Swat. The Pakistani media reacted speedily and angrily with the story being news headline on most Pakistani TV channels. The extensive round the clock dramatized media coverage of the tragic incident similar to Americas 9/11 was never seen before on Pakistani media. Everyday, an impressive array of stories on Malala appeared in both print and broadcast media. This massive exposure was significant in reshaping public perception about the Taliban and their brutal ways. The constant media coverage of the shooting helped in prompting outrage and protests across Pakistan. Both the political and military leadership across the country including media anchors and civil society showed their outrage at the incident. Army chief Gen Ashfaq Parvez Kayani, who visited Malala in hospital in Peshawar, said it was time to “stand up to fight the propagators of such barbaric mindset and their sympathisers”. Raja Pervaiz Ashraf the Prime Minister of Pakistan asked other political leaders to join him in showing solidarity and termed the incident as an attack on national and social values. Most interestingly within couple of hours of the attack, Washington’s spokesperson appeared in the media, condemned the attack on Malala and reaffirmed that US mission to fight against Taliban will continue in the region. US President Barack Obama termed the assault on the young rights activist as disgusting and tragic. UN Secretary General Ban Ki-moon also expressed “outrage” at the life-threatening attack on the girl and called for the perpetrators of the “heinous and cowardly” attack on Yousafzai to be swiftly brought to justice. Such has been the coverage of TV channels on the shooting of Malala Yousafzai that some media commentators had to call for restraint and question media ethics for coverage of kids at risk.

The recent events like the protests against the film on YouTube “Innocence of Muslims” followed by the success of peace march against drone strikes in Pakistan and the timing of Malala attack raises some very important questions like why Malala was not attacked earlier as the Taliban could strike at will in the area? Why she was attacked soon after the success of peace march against drone strikes? Why media is giving so much hype to the issue? Why the other girls that were injured with Malala in the cowardly attack not given due coverage by media? Where are media ethics for coverage of kids at risk?

In Pakistan, terrorism related violence have contributed to security instability in the country. Everyday many girls like Malala are being kidnapped, raped and killed by criminals. Children have been killed throughout the seven years of CIA drone strikes in Pakistan but they fail to get the media attention or coverage. Dozens are being killed and dumped everyday in Karachi and the brutal violence in Balochistan continue to worsen but all this gets very little media attention compared to media coverage given to attack on Malala.

Agenda Setting Theory can be a perfect explanation for how the media approached its coverage of the issue. The attack on Malala itself was the most inhuman act of terrorism and needs to be condemned at all levels but the hyped media coverage of the issue ultimately raises questions on the vulnerability and risks of putting children in the media spotlight. The extensive coverage of Malala helped put her at risk before the attack and with the media coverage being given to her now, she along with her friends and family have been made more vulnerable than before.

Only time will tell whether the media coverage given to her was orchestrated to shape public perceptions and opinions on the government intended operation in North Waziristan and are we again witnessing the media being used as a strategic weapon of war to shape the minds of public.

Avalanche of Transnational Media in Pakistan

Broadcast networks were the early adopters of satellite communication as a distribution method and, around 1989, CNN emerged as the world’s first global satellite TV channel reaching all the corners of the globe. This new global media network was also used in shaping public acceptance of U.S. foreign policy during the build up to the first Persian Gulf War. The coverage of the Gulf War was the start of the transnationalization of media in a global context. The live coverage of hours of televised bombardments, scud missile attacks, and laser-guided missiles swooping down from invincible aircraft in the best Hollywood style showed a cinematic extravaganza somewhere between Star Wars and Lawrence of Arabia. This was also the first time when people around the world had real access to live information on war events as it unfolded. During that time, in Pakistan, people only had access to state controlled PTV (Pakistan Television Corporation); with the coming of free to air satellite channels, especially CNN, more and more people wanted to tune in to the Hollywood style broadcasting of war events and it was bonanza time for satellite dish business in the country.

By the closing of the 20th century, a transnational borderless media system had developed, driven by a series of economic reforms that included the liberalization of the broadcasting industry, a worldwide amalgamation of the media industry, and the opening of the industry to cable television. This all led to an explosion in the Pakistani cable TV industry and the entry of many foreign and local players like Rupert Murdoch’s Star TV Network, MTV, Zee TV, Geo TV and others. Transnational TV channels multiplied and matured in diversity over the past decade to include some of the most innovative and influential channels of our times, like Al-Jazeera, CNN, BBC, Geo TV and Star TV Network. Many of them are at the heart of the transformation of regional media cultures, most noticeably in the Middle East, South Asia and even Africa, but also in Europe. The local media industry in Pakistan, hampered by a lack of capital, talent, and up-to-date facilities faced an uphill battle against the well-established transnational competitors, especially against Star TV and Zee TV networks with a global reach and audience. The broadcasting of popular Indian television channels such as Zee Network and Star TV on cable TV in Pakistan was sharply contested by the local broadcasters under the pretext of national identity and cultural protectionism. The local satellite television broadcaster started lobbying against the broadcasting of Indian media content on cable TV networks in Pakistan, also raising the need for regulatory intervention in the placement of local channels on cable TV networks, allowing them to compete against the transnational media flowing across the border. The avalanche of transnational media in Pakistan also affected the free to air advertising revenues based business model of the local media channels, as their advertising revenues started to decline whenever transnational Indian media content was allowed on the networks. Most of the major regional corporation’s preferred advertising during the popular transnational Indian soaps; this severely affected the local broadcasters’ ratings and revenues.

Local media protection against transnational media remains an enduring subject in policy discourse, especially in developing countries like Pakistan and others in South Asia that are experiencing an asymmetrical cultural flow through means of very popular transnational content. In this age of digital communication, Pakistan still resorts to legal, administrative, economic and violent means for restricting transnational media for cultural and corporate protectionism. The popular broadcasting and unpopular blockage of transnational Indian satellite channels on cable TV networks in Pakistan is becoming a hot topic of policy debates, as consumers want access to transnational media content, whereas the government cultural and local industry still consider protectionism an important factor. In a dynamic process of change, it is the interaction of many factors that brings about endless possibilities either facilitating the transnationalization of national or local cultural industries or impeding further growth of global media. The current opinionated policy approach is without a doubt failing the development and competition in quality and diversity of media growth in Pakistan.