Pakistan: signs of a decline in the price of broadband in the face of increasing competition

[The News] The cost of broadband Internet in Pakistan has started declining with the growth of information technology, encouraging consumers to make increased use of the service.

The cost of broadband connection, with varying speeds, is much cheaper in Pakistan than neighbouring India where the IT industry had developed much earlier. Similarly, Internet Service Providers of Pakistan are charging relatively less than those in developed countries including the UK, US and others.

A study conducted to assess broadband Internet access cost in Pakistan and other countries shows the price in Pakistan is lower and inexpensive. However, it finds that in Pakistani most of the time download speed is reasonable but browsing speed is poor.

The Pakistan Telecommunication Company is charging a fee of Rs1,200 for 1mbps (Megabits per second), which is cheaper when compared with that of India and US. The two ISPs of US, Cox.net and Verizon, charge a higher amount than that of PTCL.

Cox.net is providing broadband service at $45 for 9mbps, $30 for 1.5mbps and $20 for 768kbps. Verizon is charging $18 for 1mbps and $28 for 3mbp. Converted into Pakistani rupees, the cost of 1.5mbps of Cox.net broadband comes to over Rs2,400 per month and that of Verizon is over Rs1,400 per month.

In India, the famous Tata Indico is providing broadband service at 3,850 Indian rupees for 1mbps and Rs1,850 for 512kbps. Converted into Pakistani rupees, the cost of broadband service for 1mbps comes to more than Rs5,000.

BSNL, another Indian company, is providing broadband service to its customers at 1,350 Indian rupees for 512kbps.

Adnan bin Riaz, who is running a private software house and working for a US company, said prices were not an issue rather quality was. Quoting the example of Japan, he said 1gbps broadband service is available at just $56.50, equivalent to Rs4,500. He said Google had been providing free wireless Internet service up to 8mbps in America and Canada. Pakistan’s ISPs, he said, were not providing proper services as they promised to the customers. However, with increase in competition, “they are now improving their services as the users are much more selective than before,” he added.

Broadband Internet service getting cheaper