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Eco402 GDB Solution

Wednesday, April 27, 2011 Posted In Edit This
Total Marks 2
Starting Date: Monday, April 25, 2011
Closing Date: Wednesday, April 27, 2011

StatusOpen

Question/Description
Mobile phones were introduced by the Paktel and Instaphone companies at the end of 90s.At that time mobile phones were considered luxury because connection charges, SMS charges and call rates were very high. In present time mobile is not considered as luxury good, peoples are using fine quality mobiles at low prices. The connection charges and call rates are also very low. According to you what is the main reason of this drastic change in utilization of mobile phones?
Note: Your solution must be within 50-75 words.

Solution:

Mobile Phone History in Pakistan
Mobile Phones are firstly introduced in Pakistan at the end of 90s by Paktel (now Zong) and InstaPhone (now it has terminated its services in Pakistan), these two are pioneers in telecom sector in Pakistan and both used AIMS platform at that times. Initially, having a mobile phone was considered as a luxury because connection charges, call rates, SMS Charges, handsets etc are very much costly. And there were several types of other hidden charges were also applied i.e. roaming charges… Pakistan is a fast growing and developing nation in all technical fields. Especially, its Telecom Technology sector has a much higher progress ratio than any other country of the region. In past years it shows a visible development in Telecom Sector.

Development in Telecommunication Sector in PakistanWithin few years other companies (Mobilink, Ufone) also got license and started their services. Ufone is a government company. In Musharaf regime, two more licenses were granted to Warid and Telenor to offer their services in Pakistan and Paktel was taken over by Zong which is a China Mobile Company (CMPak Company). Now collectively there are 5 local mobile phone operators are working in Pakistan with other satellite mobile operators like Thuraya. Over 75% population of Pakistan is using mobile phones now a day. Connection charges are as low as 1$ and in some cases connections are free and even you can get free gifts and bonuses. That’s why some people have more than one connection and some even have connection of all companies. Connection Charges, Call rates, SMS charges, Internet GPRS and MMS Charges are very affordable.

Very simple if price drops demand increases. So for a device that is as convenient and help full as a cell phone you get an explosion in use.

As demand for mobile phones increases, supply of it also increases.

Therefore over the years, the growing demand has meant increase in supply.
The increase in supply also prevents shortages, helping to keep the prices low.

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