Dr. Mohammed YaseenChairman

Pakistan Telecommunication Authority

Pakistan and Afghanistan Summit Telecom Industry Overview and oppertunaties

Way Forward for IndustryWay Forward for Industry

CVAS Licensing and MVNO FrameworkCVAS Licensing and MVNO Framework

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3G Handset Manufacturing3G Handset Manufacturing

Telecom Deregulation and DevelopmentTelecom Deregulation and Development

Content Development and ApplicationsContent Development and Applications

PTAs Approach for the Regulations

Facilitator: Regulations to facilitate the industry &

reliance on market forces

Transparent & non-discriminatory

Technological neutrality

Consumer Protection

Policies to Encourage Investment by MoIT

Market liberalization Investor-friendly policies Ensure benefits for the investors and the end users

Deregulations Policy

2003

Deregulations Policy

2003Cellular Policy

2004

Cellular Policy

2004Broadband Policy

2004

Broadband Policy

2004

Cellular Mobile Growth

Cellular Market Share

Subscribers

WLL

PTCL

Infrastructure Deployment3 Parallel LDI Operators in addition to PTCL (26% shares of Etisalat)

Link Direct - 5000 KM optical fiber cable Wateen - 5700 KM optical fiber cable Multinet - 5000 KM optical fiber cable

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Broadband Subscribers

3 WiMAX operators (Wateen, WiTribe, Link dot net) 2 EVDO operator s (PTCL and Worldcall)

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BB Eco System; PTA being Facilitator

Establishment of Local Establishment of Local Internet Exchange Internet Exchange

Points Points

Peering Agreement Signed Cost and Routing Efficiency

at International Bandwidth Always On Local Internet

Availability

Transition of .pk ccTLDTransition of .pk ccTLD

Successful Mirroring of .pk DNS Infrastructure

Encouraging Local Hosting

Focused on Fixed Focused on Fixed Wireless BB Wireless BB

Reorganization of WimaxSpectrum

Spectrum and infrastructureSharing

Educational Portal and Educational Portal and IntranetIntranet

National Rabta Portal Distance learning Educational Portal & Intranet Free SMS software for all

Educational Institutes

Broadband Broadband Stakeholders GroupStakeholders Group

Unique platform for related stakeholders

Report Prepared & Published Broadband User Survey

Content and Content and Applications Applications

Innovative Mobile ApplicationCompetition with IndustryPartners

Broadband Subscribers by Technology

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Foreign Direct Investment

Telecom Investment

Telecom Revenues

Benefits of Deregulation

Total Population: 166.5 Million

Mobile Phone subscribers: 105 Million (63.2%)

Fixed Line subscribers: 3.3 Million (1.9%)

WLL subscribers: 2.8 Million (1.7%)

Broadband subscribers: 1.2 Million (0.7%)

Teledensity Comparison Room to Grow

Apr - 2011

Total Population: 152.5 Million

Mobile Phone subscribers: 5 Million (3.3%)

Fixed Line subscribers: 4.5 Million (2.9%)

WLL subscribers: ---

Broadband subscribers: ---

2004

Teledensities of Regional Countries (%)

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Broadband Subscription Forecast(2010-2020)

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No. of SMS per Subscriber per Month

SMS Exchanged (PAKISTAN)

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Trends towards 3GTrends towards 3G

Way Forward for the Industry

Wireless Broadband Technologies to Bridge the Gap

Smart phones are more than PCs

Content Development Business Applications Solutions for IT Business Development Niche Market capitalization

WIRELESS BROADBAND

CVAS/ MVNO

MVNO Framework

Multiple MVNO/MNO Agreements PermittedMultiple MVNO/MNO Agreements Permitted

Agreements To Be Approved By PTAAgreements To Be Approved By PTA

MVNO Class LicenseMVNO Class License

NW Elements Not PermittedNW Elements Not Permitted

PTA Will Issue Number Blocks To MVNOs Against NDC Of Parent MNOPTA Will Issue Number Blocks To MVNOs Against NDC Of Parent MNO

Number Portability Joint Responsibility Of MVNO & MNONumber Portability Joint Responsibility Of MVNO & MNO

MVNO Framework

MVNO Responsible For Quality of Service & Customer Facilitation MVNO Responsible For Quality of Service & Customer Facilitation

Roaming Agreements PermittedRoaming Agreements Permitted

License Fee USD 5MLicense Fee USD 5M

MVNO Services Cannot Be Terminated Without PTA ApprovalMVNO Services Cannot Be Terminated Without PTA Approval

License Duration 10 Years (Extendable)License Duration 10 Years (Extendable)

Third Party Mobile Banking Regulations

One doctor for every 1,297 persons and one dentist for every 22,681 persons

One teacher for every 38 Primary Students

There are 24 Million Bank Accounts

60% of our population lives in Rural Areas

e/m-Healthe/m-Health

e/m-Educatione/m-Education

e/m-Bankinge/m-Banking

e/m-Governmente/m-Government

Every 10 points in Internet Penetration per 100 translates into 1.21 % GDP growth(World Bank)

More job creation New businesses and entrepreneurship opportunities

Socio - Economical Impact

Social Prospects of ICTs

Economical Prospects of ICTs

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CHINA - Mobile Handset Market 2009 Chinese brands

constitute 37% share

Design and R&D capabilities enable models for rapid growth of Chinese handsets

Chinese players produce clam-shellphones which makes up 60 percent of the Chinese market

Multinational firms that serve global markets took time to customize phones with clamshell designs

Were able to capitalize on locally manufactured mobile handset components

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Telecom Imports (Pakistan)

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Manufacturing Wages (USD per Hour)

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Incentives for Telecom Manufacturers in Pakistan

Repatriation of funds allowed

100% foreign equity allowed

No minimum investment amount

Sales tax/Withholding tax on import of PME is 0%

No restriction for payment of royalty or technical fee

Pakistan: Custom Duty @20-25% if manufacturing

locally otherwise Custom Duty @ 5%

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Technology Neutral - 2 New LicensesTechnology Neutral - 2 New Licenses

Open AuctionOpen Auction

Highest Bid US$ 291 MillionHighest Bid US$ 291 Million

Warid & TelenorWarid & Telenor

Role-Out Obligations 70% Tehsil HQs (US$ 15M Performance Bond)Role-Out Obligations 70% Tehsil HQs (US$ 15M Performance Bond)

Existing Operators to Pay the Same Amount for RenewalExisting Operators to Pay the Same Amount for Renewal

Cellular Mobile Policy 2004

Open and Technology NeutralOpen and Technology Neutral

License Term - 20 YearsLicense Term - 20 Years

Local Loop (LL) ILF US$ 10,000 / region - 14 RegionsLocal Loop (LL) ILF US$ 10,000 / region - 14 Regions

Wireless Local Loop Option (Spectrum Auctioned)Wireless Local Loop Option (Spectrum Auctioned)

Long Distance and International (LDI) ILF US$ 500,000Long Distance and International (LDI) ILF US$ 500,000

Deregulation Policy Fixed 2003

Establishment of Consumer Establishment of Consumer Protection DirectorateProtection Directorate Robust Complaint Management

Robust Complaint Management

Regulatory Initiatives Regulatory Initiatives

Consumer Protection

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Future PlansFuture Plans

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Summary of CVAS License Issued

ICT Development - Industry Facilitation

Establishment of Local Establishment of Local Internet Exchange Internet Exchange

Points Points

Peering Agreement Signed