Telecommunication is the means if digitalization is the destination.

Telecommunication: The Means of Communication in the Modern World

Telecommunication is the transmission of information over a distance. It includes the transmission of voice, data, and video. Telecommunication has become increasingly important in the modern world, as it allows people to stay connected with each other regardless of their location.

There are many different types of telecommunication technologies. Some of the most common types include:

• Wireline telecommunication: This type of telecommunication uses physical wires to transmit signals. Wireline telecommunication was the first type of telecommunication technology, and it is still used for some applications, such as telephone service.
• Wireless telecommunication: This type of telecommunication uses radio waves to transmit signals. Wireless telecommunication is more convenient than wireline telecommunication, and it is the preferred method for many applications, such as mobile phones and the internet.
• Satellite telecommunication: This type of telecommunication uses satellites to transmit signals. Satellite telecommunication is used for applications that require a wide range of coverage, such as television broadcasting and global positioning systems (GPS).

Telecommunication has had a profound impact on society. It has made it possible for people to stay connected with each other regardless of their location. This has led to increased globalization and a more interconnected world. Telecommunication has also made it possible for people to work from home, which has led to a more flexible workforce.

Telecommunication is a rapidly evolving field. New technologies are being developed all the time, which is making it possible to transmit information faster and more efficiently. As telecommunication technology continues to evolve, it is likely to have an even greater impact on society.

We investigate the digital age. It is described as leveraging digital technology to change, disrupt, and create new opportunities for revenue and value in the Gartner lexicon.

It addresses business optimisation with universal connection, inclusion, and lifestyle ease, enabling people and enterprises to use time and processes efficiently.

Ironically, the same event (Covid19) that brought to social estrangement also brought up a rapid, global connection via online highways. Families migrated to the WhatsApp video lounges to keep connected, while businesses discovered Teams and Zoom to be the new boardroom. Work-from-home (WFH) became the new office feature when schools introduced the virtual classroom.

The relatively smaller, portable, smart device—a smartphone—that a large portion of the population had access to enabled this significant paradigm change.  Those who previously had standard mobile phones converted to smart ones to maintain global connectivity while at work. Even those who stayed with their old phones realised that they were no longer just a means of communication or amusement, but rather a lifeline that made it possible for practically all industries to conduct meetings, make decisions, and analyse data.

Then followed advancements in big data, coding, improved features, financial inclusiveness, wallets, shopping, and connectedness through applications, and all of a sudden a cell phone with internet became a place where everyone lived, worked, and went to the market.

The Digital World, a kind of new planet without geographic or ethnic boundaries where success was determined only by merit, where time was measured in the precise seconds it took for the algorithm to match the request, and where the impact was much greater than any previously non-digital verse, emerged.

The world embraced this new mode of transportation, and national economies grew dependent on it.Despite having a developing economy and a teledensity of 82.08% with 194 million subscribers, Pakistan has 125 million broadband users and 125 million smartphone users. This data need improvement.

The smart phone has become crucial for ensuring your survival, particularly if you want to combine it with success and expansion. Countries that made sure this technology spread farther benefited more than those that carefully considered its effects.

Pakistan, unfortunately, belongs to the latter group. a country where the paradigm change has not yet been fully accepted and where a smartphone is still considered a luxury.

Pakistan Mobile Telecommunication Limited (Jazz), Telenor Pakistan (Telenor), China Mobile Pakistan Limited (Zong), Pakistan Telecom Communication Limited (Ufone), and Special Communication Organisation (SCO) are the five main players in Pakistan's telecom sector.

The digital revolution in Pakistan is being hampered by the taxation policy, which has taken too many detours and isn't always in the best interest of the country or economy despite the presence of clever models and five major players.

Be prepared for the shock when you review the Pakistan data for the Average Revenue per User (ARPU), which stands at less than USD 1, placing Pakistan at the lowest rung in comparison with many countries. Considering the bursting 240 million population, a natural assumption is for ground-breaking profits by the operators. Furthermore, this represents a significant decrease from USD 9 in 2004, when Pakistan did not even have 3G or 4G.

In contrast, the telecom sector is subject to General Sales Tax (GST), also known as Value Added Tax (VAT), at a rate of 19.5%, as well as an extra Withholding Tax (WHT), at a rate of 15%. Is it true, for instance, that WHT is only ever levied on licence and spectrum costs globally and never on consumers?

More than half of the population is now living below the poverty line as a result of growing inflation, making them ineligible for tax exemptions. This inevitably makes the situation more complicated, and when paired with Pakistan's high consumer tax rate and the corporate tax rate of 34%, the situation becomes worrying.

At the beginning of the fiscal year, the government hiked telecom taxes in the minibudget. The main budget is coming up, and unless significant positioning is done, the telecom players might want to reduce their footprint, which would lead to a decline in communication and internet penetration, harm the country's reputation abroad for other investors, and most importantly, bring about massive unemployment in the wake.

It would be ideal to return the withholding tax (AIT) on telecom services to the earlier choice of 8% to 10% for upcoming years, as per the previous budget. The OICCI actually made the same recommendation in their most recent budget proposal: "The rate of withholding tax on subscribers should be abolished completely as a majority of the subscriber's base falls below the taxable limit or the withholding tax reduction made through Finance Act, 2021 should be reinstated, i.e., 8 percent effective Fiscal Year 2023."

We need to make a case for changing the way we think about what is currently necessary for growth. Food, pharmaceuticals, power, and technology must be grouped together with the telecommunications sector as not only necessary but also the enabling sector to support and assist growth, export, and other economic activities.Reversibly, the advantages of low taxes may lead to greater accessibility, better connectivity, and penetration, which may hasten growth and investment and promote inclusion and social advancement.

With innovation and entrepreneurship, job creation, economic diversification, and the growth of knowledge-based businesses, all of this may easily be translated into wealth.By completely embracing the digital world, Pakistan can find various solutions to its logistical, educational, and economic problems. And in order to do that, we must recognise how vitally important telephony is.In order to build an international reputation where the majority of its citizens are connected to the internet and actively participate in the expanding economy, Pakistan must delve deeply into the opportunities for digital inclusion for social development, innovation, entrepreneurship, efficiency, transparency, education, and employment opportunities.