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Pakistan breaks fiber optic cable monopoly

Pakistan's internet sector has long been dominated by PTCL and TWA, but regulatory and industry efforts are underway to introduce competition and reduce the duopoly's control over international bandwidth.Current Monopoly Situation

Pakistan's international internet connectivity is largely controlled by two companies: Pakistan Telecommunication Company Limited (PTCL) and Transworld Associates (TWA), which manage access to seven undersea fiber optic cables and two overland links . These companies act as intermediaries, purchasing bandwidth from global consortia and reselling it to smaller ISPs at marked-up prices . This duopoly has resulted in high internet costs, low broadband speeds (20–30 Mbps), and vulnerability to currency fluctuations, as bandwidth is priced in US dollars . A single undersea cable failure in 2023 caused nationwide disruptions, highlighting the fragility of Pakistan's internet infrastructure .

Proposed Measures to Break the Monopoly

Industry experts, led by the Wireless and Internet Service Providers Association of Pakistan (Wispap), have proposed several strategies to reduce reliance on PTCL and TWA:

  • Establishing new internet gateways in cities like Gwadar to diversify connectivity beyond Karachi, similar to Brazil's model .
  • Allowing ISPs to purchase bandwidth directly from global providers, following South Africa's approach, which could lower costs and improve service quality .
  • Negotiating bandwidth deals in Pakistani rupees instead of US dollars, reducing exposure to currency volatility, as practiced in Malaysia .
  • Expanding fiber backhaul and redundancy, including fiberized towers and alternative routes, to prevent nationwide outages during cable failures .
Potential Impacts

Breaking the monopoly could lead to:

  • Lower internet costs for consumers and businesses.
  • Higher broadband speeds, potentially matching regional peers like Bangladesh, which offers 50 Mbps at half the price .
  • Improved resilience against undersea cable failures and natural disasters, reducing economic losses from internet disruptions, which were estimated at $1.62 billion in 2024 .
  • Enhanced competition among ISPs, fostering innovation and better service delivery.
Outlook

While Pakistan has not yet fully dismantled the duopoly, ongoing regulatory discussions and infrastructure projects indicate a shift toward a more competitive and resilient internet ecosystem. The success of these initiatives will depend on government support, investment in fiber infrastructure, and the willingness of ISPs to adopt new procurement models . By diversifying international connectivity and empowering smaller ISPs, Pakistan aims to reduce costs, improve speeds, and strengthen digital resilience, which is critical for its growing IT sector and broader economic development.

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