PTA report reveals telecom sector generated Rs850 billion in 2022-23

Morning! It's that time of the year again: you're inside, looking pretty in indoor clothes and trying to come up with your own little outdoor weather predictions.

Spoiler alert: it never works. Dress too light, and you're shivering; go heavy, and suddenly you're sweating. We aren’t even gonna talk about the fan wars that are about to go down. There are some dark times ahead…

In this week’s edition:

⚔️ TikTok Vs UMG

🔌 Different year, same sh*t

🤳 Report on where exactly people like to waste their time online

📡 PTA has some good news for us..this once

- The Itla Squad 💼

Business

Global 🌎️

Tiktok on the clock

You may find TikTok without something that made it fun in the first place: songs.

What’s up: The latest clash in the music industry drama is here – Universal Music Group (UMG) is ending on licensing its songs to TikTok and TikTok Music services. UMG has been in talks with TikTok for a contract renewal, pushing for fair compensation for artists and songwriters.

TikTok Vs UMG:

1. UMG wasn’t too excited to renew the contract with TikTok as it accused TikTok of trying to build a music empire without giving fair value for the songs. TikTok's offer to pay artists and songwriters at a rate much lower than other major platforms raised eyebrows at UMG.

2. TikTok's move to employ AI tools in content creation got under UMG's skin as it can hurt the earnings for human artists.

3. TikTok says UMG is ignoring a platform with over a billion users, great for promoting talent. UMG claims TikTok is using strong tactics, like cutting songs from lesser-known artists during talks.

4. TikTok denies this, saying UMG's actions don't consider artists, songwriters, or fans. Interesting fact: TikTok only makes up about 1% of UMG's revenue.

What numbers say: UMG's shares took a hit, dropping 1.4% to €27.36 in Amsterdam. Analysts reckon TikTok's renewal offer is not fair, considering TikTok's explosive growth.

TLDR: Universal Music Group (UMG) is ending song licensing to TikTok and TikTok Music due to contract renewal disputes. UMG accuses TikTok of undervaluing artists, while TikTok emphasizes its massive user base for talent promotion. UMG's shares dropped amid the clash, with analysts questioning the fairness of TikTok's renewal offer despite its significant growth.

What else is new in news

✶China's manufacturing activity didn't do well in January for the fourth month in a row. The official purchasing managers' index (PMI), which shows how well the sector is doing, went up a bit to 49.2 from 49.0 in December. But since it's still below 50, it means there's more contraction than growth.

Local 🇵🇰

Different year, the same overpriced electricity

If you thought 2024 was gonna be better than 2023, you thought wrong.

NEPRA is suggesting raising electricity prices by Rs5.62 per unit based on fuel costs, potentially burdening consumers with an extra Rs42 billion.

What’s up: Our blood pressure, that’s what.

• The companies that give us electricity (DISCOs) want to recover Rs81.5 billion. They say it's because some power plants aren't working, and they need us to help cover the cost. So, they asked NEPRA officially.

• Each electricity company is asking for a different amount of money. For example, one company (LESCO) wants Rs15,105 million, and another (MEPCO) wants Rs14,884 million. Even though the government wants things to be the same for everyone, these companies are doing their own thing, affecting all of us.

Zooming out: NEPRA plans to decide on adjustments on February 14, 2024 (weird date selection). Whatever they decide will impact both the electricity companies and those of us who use K-Electric.

TLDR: NEPRA is considering a Rs5.62 per unit electricity price hike, potentially costing consumers an extra Rs42 billion. DISCOs want to recover Rs81.5 billion, creating financial concerns. Different companies seek varying amounts. NEPRA's decision on February 14 will affect both companies and consumers.

News Flash

✶The Red Sea trade crisis has led to a 150% surge in freight charges in Pakistan, affecting exports of major commodities. All Pakistan Shipping Association (APSA) reported that container costs have risen from $1,500 to $2,500 on average due to the East-West route disruption. To know more about the why of the disruption, our previous edition might help.

Tech

Global 🌎️

Report reveals how people like to waste spend their time

For the social media giants, the results from the modern-era-hunger-games are out: The Pew Research Center's latest report shares how Americans spend their time online.

What it says: On social media screen time fight, there are some obvious winners.

• 41% are online "almost constantly," and 43% are online "several times a day."

• YouTube is popular with 83% engagement from U.S. adults.

• Meta-owned platforms, Facebook and Instagram, have significant user bases at 68% and 47%, respectively.

• Pinterest is at 35%, and TikTok closely follows at 33%.

• LinkedIn and WhatsApp attract 30% and 29% of U.S. adults.

• Snapchat and Reddit are tied at 27% and 22%

Age and usage: It seems TikTok has reasons for its proud stance on the whole UMG fight.

• TikTok captures 62% of users in the 18-29 age group, trailing YouTube (93%), Instagram (78%), and Snapchat (65%).

• Instagram performs well among Hispanic and Asian adults, TikTok is more popular among women, LinkedIn attracts those with bachelor's degrees, and platform X sees higher use among higher-income Americans.

TLDR: Pew's report on American online habits shows 41% are almost always online, and 43% check multiple times a day. YouTube leads with 83% engagement, followed by Meta-owned Facebook (68%) and Instagram (47%). TikTok dominates the 18-29 age group with 62%, while other platforms cater to specific demographics.

What else is new in news

✶OpenAI has teamed up with Common Sense Media to promote the safe use of AI among teens. CEO Sam Altman aims to make AI tools accessible for education responsibly. Common Sense is developing an AI rating system to assess risks and benefits for parents, children, and educators, addressing key questions about AI's impact on learning, rights, and misinformation.

Local 🇵🇰 

PTA has good news for us… this once

2024 might not be all bad news.

Why? The report from the Pakistan Telecommunication Authority (PTA) says that In 2022-23, the telecom sector in Pakistan rocked it with revenues reaching Rs850 billion, showing a solid 17% growth from last year.

• It’s raining investments, with local industry investments hitting $5.7 billion and Foreign Direct Investment (FDI) at $1.4 billion over the last five years.

• To bridge the digital gap, the PTA is working on satellite broadband, using the High Throughput Satellite (HTS) system for high-speed internet in underserved areas.

• Facing challenges like low Average Revenue Per User (ARPU), the industry is considering solutions like sharing infrastructure and cost-effective strategies.

• Mobile broadband is on fire, with 65% of users in 2022-23 compared to 37% in 2017-18. Jazz is leading the pack with the most subscribers, 4G users, and revenue market share.

Moving on: The report also said that guidelines are in the works for handling electronic waste (e-waste) responsibly in the sector and hopes to launch 5G services in the country soon.

TLDR: In 2022-23, the telecom industry earned Rs850 billion, a solid 17% growth. Big investments, $5.7 billion locally and $1.4 billion from abroad in the last five years. The PTA is bringing fast internet to more places. Despite challenges, smart solutions are in play. Mobile broadband is booming, led by Jazz. The report hints at e-waste guidelines and potential 5G services soon.

Tech tour of news

✶Alipay+, the digital payments and marketing platform by Ant International's subsidiary, Ant Group, is teaming up with Pakistani fintech platform NayaPay to enhance international payments in Pakistan. The collaboration involves implementing QR codes compatible with Raast, Pakistan's instant payment system, and Alipay+ payment partners, including e-wallets and bank apps.

More interesting Itla (اطلاع) we consumed:

🎥 The series 'The Marvelous Mrs. Maisel' on Prime Video was a cool hidden gem. It's witty, thought-provoking, and … marvelous. It’s set in late 1950s America and covers a former housewife’s journey into the world of stand-up comedy. If you are a woman and heard yourself say ‘good old times’, this show might make you rethink that.