Mobile Phones & Fiber Cable Manufacturing

1.  Telecom Economy

1.1.  Global

  • Over 5.4 billion people globally subscribed to a mobile service
  • There will be approx. 6.3 billion unique mobile subscribers by 2030
  • Digital economy is equivalent to 15.5% of the global GDP, growing 2.5 times faster than global GDP over the past 15 years
  • 5G will add almost $1 trillion to the global economy in 2030
  • 10% increase in Broadband penetration leads to 2.4% increase in GDP
  • Fiber optics market (Globally) is expected to reach USD 8 billion by 2026

1.2.  Mobile Manufacturing in Pakistan

  • The Population of Pakistan reaches 241.49 million
  • 192 Million Mobile Cellular Subscribers, 80% Mobile Tele density
  • 136 Million Broadband Subscribers ,56.37%Mobile Broadband Penetration
  • $7.1bn US$ are invested into this sector in last 5 years
  • Smart Phone connections are 59%, expected to reach 74% by 2026
  • Sector contributed estimated PKR 1.43 T in last 5 years

 

2.  Mobile Manufacturing in Pakistan

2.1.  LANDSCAPE-Current Status

  • 35 Companies currently assembling 2G,3G,4G mobile phone/devices
  • 40,000 direct jobs created in 2 years
  • 90 M + mobiles handset assembled since 2016
  • 65 M handsets/year locally assembling capacity
  • 25M handsets/year local demand
  • Catering 93% of local demand
  • 35+ International brands currently assembling in Pakistan
  • Global brands like Nokia , Samsung , Vivo, Xaomi, Redmi, oppo, Mi started assembling
  • Several contract near to maturity level for exports of mobile sets for Africa region
  • 41% of market is still on 2G

 

3.  Fiber Optic Cable Manufacturing in Pakistan

  • 04 Companies currently manufacturing fiber optic cable in Pakistan
  • 1.34 Million+ KM’s cable produced till today
  • 7000 KM+ Monthly production (average of last 6 months)
  • 10,000KM + Monthly production capacity (which can be raised as per demand)
  • 130,240 KM’s of fiber optic cable exported so far
  • Exported countries includes, United Arab Emirates, Kingdom of Saudi Arabia, Afghanistan, Iraq, Somalia, Ghana, Europe & China

 

4.  Why to invest in Device/fiber optic Manufacturing industry?

  • Geo-strategic location
  • $ 100-120 /Month skilled human capital, Lowest in region
  • Special Economic Zones has been made to meet the global challenges of competitiveness to attract FDI.
  • 100% Intellectual property mobile phones
  • Demand Potential specially in 5G mobile sets & devices.
  • Low cost and high standards
  • Zero Regulatory Duty for CKD/SKD mobile phone kits
  • Zero Fixed Income Tax on CKD/SKD manufacturing of mobile devices up to USD 350 category
  • Zero Fixed Sales Tax on CKD/SKD manufacturing
  • Exempted from 4% of withholding tax on domestic sales
  • 3% R&D allowance on exports (Proposed 8% allowance in Policy 2024-27)
  • Strong dealership and distribution network
  • Fast growing smart phone market
  • Opportunity in Sensors, IoT, Routers, 5G Smart devices, WiFi 6E device manufacturing
  • Localization is not yet started hence welcome investment in manufacturing chargers, battering cables, hand free etc
  • Only 11% of cell towers are connected to fiber optic, compared to international benchmarks of 40% and regional comparisons of 80% in Malaysia and 90% in Thailand.
  • Government all set for spectrum auction for 5G