Mobile phone curfew during Eid cost Pak telecom sector Rs3 billion

Pakistan's telecom sector is said to have lost Rs2.5 billion to Rs3 billion in revenues after the government banned mobile phone services for security reasons in four major cities on the eve of Eid-ul-Fitr, which is a high traffic occasion for telecom operators.

On August 19, the regulatory body for telecom sector, Pakistan Telecommunication Authority (PTA), instructed cellular operators to block their services in the major cities for 15 hours on the eve of Eid-ul-Fitr. The government was willing to forego the tax revenue for the safety of the people. Telecom companies, however, are silent on the merits of this decision, reports The Express Tribune.

"Based on the information we gathered, the losses are estimated between Rs2.5 billion to Rs3 billion," a telecom source said.

Interior Minister Rehman Malik justified the decision citing threats against the country. Since militants use remote-controlled bombs detonated by cell phones, this was an unfortunate but necessary step to take, Malik said.

The telecom operators sounded upset with the blockade. One operator said they were still assessing as to how much they had lost during the closure, while two operators refused to respond.

If the government adopts the same strategy for other special events like Eid ul Azha, the losses to the national exchequer will be in excess of Rs1 billion.