Pakistan’s internet services are facing major challenges due to the control of two companies, leading to high costs and slow speeds. Experts say that the limited competition in the broadband market is making it harder for people to access affordable and fast internet.
A Duopoly Controlling Pakistan’s Internet
Pakistan has a population of over 240 million, but only two companies—Pakistan Telecommunication Company Limited (PTCL) and Transworld Associates (TWA)—control international internet connectivity. These companies buy bandwidth from global providers and then sell it to internet service providers (ISPs) at higher prices. This has led to some of the most expensive internet rates in South Asia.
According to the Wireless and Internet Service Providers Association of Pakistan (Wispap), this lack of competition has created a monopoly-like situation, preventing better services and keeping prices high. The cost of bandwidth is linked to the US dollar, which makes it even more expensive when the currency weakens. In 2024 alone, ISPs lost 25% of their profit due to the devaluation of the Pakistani rupee, yet PTCL and TWA continued to increase their prices.
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Slow Internet Speeds Affecting Digital Growth
Pakistan’s average internet speed is much lower than its neighboring countries. The average broadband speed in Pakistan is between 20-30 Mbps, while Bangladesh offers 50 Mbps internet at half the price. This slow internet is limiting Pakistan’s ability to grow in digital industries like freelancing, e-commerce, and startups.
Additionally, the country’s internet infrastructure is weak. In 2023, a failure in one undersea cable caused internet problems across the nation. Such disruptions highlight the urgent need for improvement.
What Can Be Done to Fix the Problem?
To break this duopoly and improve internet services, Wispap has suggested several solutions:
- New Internet Gateways: Setting up additional internet gateways in cities like Gwadar will reduce reliance on Karachi’s connection hub, similar to Brazil’s diversified system.
- Pricing in Local Currency: Negotiating bandwidth deals in Pakistani rupees instead of US dollars can stabilize costs, following Malaysia’s example.
- Direct Bandwidth Purchase: Allowing ISPs to buy internet bandwidth directly from global providers, like in South Africa, can reduce costs.
- Independent Internet Exchanges: Creating local internet exchange points will help reduce dependence on expensive international bandwidth.
- Strong Regulations: Enforcing antitrust laws will prevent monopolistic practices and open up the market to more competitors.
Pakistan is expected to get additional bandwidth from the upcoming Africa-1 cable, but Wispap warns that without proper reforms, this extra capacity will only strengthen the existing duopoly instead of benefiting consumers.
The Economic Impact of Affordable Internet
Improving Pakistan’s internet services is not just about better connectivity—it can boost the entire digital economy. Currently, around 40% of Pakistan’s population does not have internet access. Lowering broadband costs and increasing speeds can help:
- Freelancing Growth: Pakistan’s freelancing industry could double its revenue to $2.5 billion by 2030.
- Startup Expansion: More affordable internet can help new businesses grow, creating jobs and innovation.
Urgent Need for Reforms
Wispap Chairperson Shahzad Arshad stressed that this issue is about more than just internet access—it is about unlocking Pakistan’s digital potential. He urged the government to introduce new policies that promote competition and break the current market control.
Without changes, Pakistan’s internet will remain slow, expensive, and under the control of just two companies. It is time for reforms to ensure fair pricing, better speeds, and a stronger digital economy for the future.
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