M. Tariq BadshaMember (IT)

Ministry of Information TechnologyGovernment of Pakistan

Dec 19, 2009

Outline Background Start-up Phase Consolidation Phase Sustainability and Scalability Challenges and the Future

Background IT Division Formed in 2000 - consolidating IT &

Telecom functions under M/o Science & Technology IT Policy Approved by the Cabinet in August 2000 Mandate of the IT Division:

IT Sector Development and use of IT for better government services

Telecom Sector Development

IT Ministry formed in 2002

Start-up Phase(Inception to 2002) Recruitment of IT and Telecom Professionals Setting up Organizations:

Electronic Government Directorate (2002) Higher Education Commission (2002) Strengthening of Pakistan Software Export Board Virtual University

Creating an Enabling Environment Pilot projects of a wide variety Major thrust on HR and Infrastructure Development

Start-up Phase(PSDP allocations)

Achievements and Lessons Achievements:

Breaking the inertia Building the team Creating Basic Organizations Developing the Telecom Infrastructure Testing the waters in various sectors Long lead activities (HR) put in motion Key policies and Legislation

Lessons: Bring Focus Strengthen Implementation

Consolidation Phase(2003-2007) With the formation of HEC a significant part of the HR

program was shifted to HEC Program was focused on:

Citizen Services IT for improving efficiency as a means to support Services IT industry Development - increasing exports and/or

creating local employment Infrastructure to meet specific needs Targeted HR Development Telecom Sector Deregulation and Privatization Legislation and Enabling Environment

IT Industry Development

Advisory and Information services Infrastructure Support (STPs) Exhibitions and Events Industrial Automation Quality Certifications Corporate Training Programs IT Industry Internship Programs Open Source Resource Center (www.osrc.org.pk) Facilitate resolution of Industry’s Operational Issues

Activities/Major Functions

E-Government Strategy Basic Infrastructure

Hardware, LAN at Ministries, Centralized Data Centre

Common ApplicationsE-Office comprises of Common processes (IC, HR, PM, Budget, Inventory)

Agency Specific ApplicationsExample: Hajj Applications. Online registration of companies with SECP, Online

recruitment at FPSC, Online Access to case laws, Court Automation, etc

E-ServicesDomicile, Driving Licenses, International Driving Permits, Arms License Issuance,

Food, Agriculture & Livestock Information Repository (FALIR), Land Record Revenue MIS etc

Replication and ReuseReplication of E-Office applications to 45 Divisions

HR Development National ICT Scholarship Program (R&D Company)

Opportunities for students from remote areas to study in ten top universities of the country

Internships (PSEB)Match making between fresh IT graduates and IT companies by placing IT graduates in IT companies

IT Apprenticeship Program (R&D Company)Rs. 15,000 per student per month to groom young professionals

Corporate Training Program (PSEB)A program that brings in trainers from abroad to train and subsequently certify individuals nominated by their companies

Capacity Building Programs (PSEB)“Specialized Training” for local IT companies in and “General Training” in the field of project management, network/security systems and business process modeling

Federal Govt. Employees Training Program (Computer Bureau)Training in basic IT to Federal Govt employees working in various Ministries/Divisions

Virtual University with enrollment of over 50,000

Telecom Sector Governing Legislation

Pakistan Telecommunication (Re-Organization) Act 1996 (Amended 2006)

Sector Policies De-Regulation Policy for the Telecommunication Sector

– 2003 Mobile Cellular Policy – 2004 Broadband Policy – 2004 Universal Service Fund Policy – 2006

Formation of Companies to manage USF and R&D Funds

National ICT R&D Fund Company Independent Company . Activities funded by mandatory contribution from

Telecom Operators Goals:

Cultivate industry-academia partnership Enhance the national ICT related human resource

development capacity Make Pakistan an attractive destination for high tech jobs Use ICT as a tool for wealth creation Spread the ICT activities at the National level.

National ICT R&D Fund Company

Major Programs National ICT Scholarship Program IT Apprenticeship Program Technical R&D Projects International Publications

Category ProposalsAmount(Rs. Mil)

1 VLSI Design 6 1042 4G Wireless Development 2 30

3 e-Health and e-Education 5 715 Social Networks 2 216 Mobile Device Software Systems 7 86

7Network Security/Multimedia and P2P Systems 9 108

8 Open Source Development 7 1359 University Excellence Program 1 16

10 Human Resource Development 7 12111 Conferences 4 2

National ICT R&D Fund - Projects

Universal Service Fund Company Independent Company

Contributions by Licensed Telecom Service Providers

No Government Funding

Spent by Telecom Service Providers to provide services in un-served and under-served areas

Ministry acts like a “Trustee” of the Fund

Disbursed through open competitive bidding by USF Company (bidder requiring least subsidy wins)

Universal Service Fund Currently has three programs:

Rural Telecom and e-Services Fiber backbone Broadband

Universal Service Fund26 “Lots” of Rural Telecom

Optic Fiber availability in Pak.

Served areas

Unserved areas

Universal Service Fund

• Previous efforts to improve failed

• Affordability a major issue

• Growth picking up but confined to large cities!

Universal Service FundBroadband status in Pakistan

Score Card – IT industry Development Exports- SBP – From US $ 23 million in 2002-03 to US

$ 184 million in 2008-09 IT Parks – 700,000 sq feet. Land earmarked at Karachi, Islamabad, and Lahore

for purpose-built technology parks ISO 9001:2000 certification to 100+ IT companies 24 companies certified in CCM/CMMI levels 2 to 5

Score Card – e-Government Basic IT infrastructure at all Ministries Electronic File Movement and MIS (Common

Applications) implemented at the Ministry of IT Over 30 agency specific applications developed for

Health sector, Municipal services Recruitment, Law enforcement, District Courts, and federal government Ministries

Federal Government Data Center being established Maintains Government of Pakistan Web Portal

Score Card - HRD 600 apprentices through IT Apprenticeship program Over 1,500 rural/non-metropolitan area students

currently studying, through National ICT Scholarship Program

Training of 5,000 Government Servants in IT Distance learning education to over 50,000 students

through VU Internships- 4460 graduates from 220

universities/institutes placed in 250 IT companies

Score Card - TelecomParameters Current StatsFixed lines (teledensity) 3.526 Million (2.2)

Mobile lines (teledensity) 95.918 Million (58.6)

WLL lines (teledensity) 2.716 Million (1.6)

Total lines 102.16 Million

Combined teledensity 62.4%

FDI (2008 – 09) US$ 815 Million

Total Direct & Induced Jobs in Telecom Sector 1.36 Million

Telecom sector Revenue (2007 – 08) Rs. 278.459 Billion

year ending 2008 statistics

Telecom Score Card (Cont..)

Parameters Current StatsTotal Internet Connections 3.7 Million

Total Internet Users 17 Million

Total Broadband Subscribers 350,000

Cellular Mobile Operators (No.) 06

Long Distance International (LDI) (No.) 12

Local Loop (Region wise) Operators (LL) (No.) 72

No. of under sea cables – International bandwidth

3

Domestic Fiber Backbone Networks 4

Year ending 2008 statistics

Telecom Score Card (Cont..)

S. No. Technology Dec 08 Mar 09 Jun 09 Jul 09 Aug 09 Sep 09

1 DSL 171,170 176,616 262,661 265,275 272,862 298,887

2 HFC 40,330 40,330 36,201 37,334 36,759 36,004

3 WiMax 39,310 39,310 88,477 101,956 119,718 133,538

4 FTTH 2,370 2,370 3,967 4,353 4,495 4,092

5 EvDO 14,000 14,000 22,503 25,191 26,662 27,474

6 Others 22 803 797

Total 267,180 272,626 413,809 434,131 461,299 500,792

Broadband Subscribers by Technology

Sustainability and Scaling Up2008 onwards Update of policies USF and ICT R&D Fund Companies gaining full

momentum Impact analysis of completed IT Projects Scaling up successful pilots:

e-office at M/o IT replicated to all Federal Ministries Federal Government Data Center

Adjusting policies and regulatory environment in light of changed telecom environment to maintain sector growth.

Challenges – e-Government Acceptance of IT enabled processes by government

functionaries (cliché: Culture Change) Ownership of IT projects and resources for

sustainability: HR for operations Recurring expenditure Electric power and other infrastructure

Security of Networks Hiring and retention of IT Professionals in

government

Challenges – IT Industry High Quality HR to feed the industry – technical as

well as middle management Affordable IT-enabled space Country Perception Increased global competition Attrition of HR to lucrative markets Venture Capital and Financing Exploiting niche markets

Challenges – Telecom Sector Sector health in light of

higher saturation levels lower ARPU due to price wars Shrinking margins

Introducing value-added services Optimal Frequency management

Management versus speed of processing Flexibility in terms and conditions of licenses distribution (Defence, Public Sector, and Commercial)

Challenges – Telecom Sector Maintaining Investors’ Interest Legislation and Policies to deal with possible mergers

and acquisitions – to maintain a fair competitive regime

Using ICT infrastructure for Socio-economic development

Increasing Broadband penetration – Supply side as well as demand (consumer appetite)

Convergence of media, telecom, and VAS

Challenges – ICT for Development Cost of Access devices Broadband service charges have come down

significantly but still above the price point for mass acceptance

Content for Broadband services Mindset of service providers Literacy and Capacity for absorbing technology Basic services (electrification, roads, drinking water,

etc.)

Future Telecom Policies are being revised in consultation

with all the stakeholders to address the challenges of the current market dynamics.

Similarly, the IT Policy of 2000, is being updated. Targets would have to be set for government ministries

New legislation in the areas of Data Protection, Privacy, Consumer Protection, IPR

IT must be introduced in our SME sector more aggressively if they are to remain competitive

IT companies would have to scale up – partly through organic growth but mostly through mergers

Future Work on affordable solutions

Using FOSS technologies where applicable Lightweight software for extending the life of hardware

Localization Public access points – like telecenters Generate viable business models for small

entrepreneurs around ICT