African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4154

Full Length Research Paper

Impact of competition on telecom sector’s performance: A case study of Pakistan

Shumaila Hashim1,2*, Khair-Uz-Zaman3, Akhtar Munir4 and Afnan Khan5
1Qurtuba University of Science and Information Technology, D. I. Khan, Pakistan. 2Department of Business Administration, Gomal University, D. I. Khan, Pakistan. 3Department of Economics, Gomal University, D. I. Khan, Pakistan. 4Mobilink, Pakistan. 5United Bank Limited, Pakistan.  
Email: [email protected]

  •  Accepted: 11 February 2011
  •  Published: 30 September 2011

Abstract

This paper empirically investigates the impact of competition on the performance of telecommunication sector in Pakistan using quarterly data for the period from 1999 Q1 to 2006 Q4. In this study, performance of telecom sector (Y) is taken as dependent variable which is explained by the factors such as teledensity, number of public call offices (PCOs) per capita, number of internet connections per capita, number of subscribers and total revenue of Pakistan’s telecom sector. Competition is the independent variable; by using the multiple regression models in log-linear form. The study found the positive and significant impact of competition on telecom sector performance. This study shows that competition is imperative for the overall development of telecom sector. Similarly competition in the telecom sector has greatly helped to increase the access of telecom services in far-flung areas of the Pakistan.

 

Key words: Competition, teledensity, public call offices (PCOs) per capita, internet connections per capita, subscribers, total revenue.