Post on 27-Jan-2016
description
Licensing in Pakistan
Pakistan Telecommunication Authority July 2015
Presentation outline
Pakistan : An Overview
SOURCE: Team analysis-Wikipedia
Pakistan • Pakistan has the 6th largest population in the world, making it an attractive market for global investors
• The country is expected to have more than 230 mln inhabitants by 2030 with ~2% per anum growth
• Its population is young and becoming more educated
• Urbanization trend is expected to continue, reaching a level of 43% by 2030
• It is expected that by 2050, Pakistan will be the 31st largest economy in world with nominal GDP of 675 bln USD from its current state of ~240 bln USD (43rd largest economy as of 2013)
Key Stats▪ Income /Capita US $1307▪ Literacy Rate 53%▪ Media Age 21.2▪ Geo-strategic Location▪ Population and workforce
Land Area 796,095 km2 • 36th Largest Area
Population, mil 196 (6th Largest Population)
3
History of Telecom in PakistanSe
ctor
Gro
wth
19471947
19901990
19961996
Before Independence- Indian Post & Telegraph Department
Post independence 1947-1962• Pakistan Post and telegraph department• 15200 telephone connection in 1948• All services manual• Operated under Gov of India Telegraph Act
19621962
4
First Step towards Sector Reform- 1962• Separation of Postal and Tele departments• Pakistan Telephone & Telegraph (PT&T) formed• Centralized Structure- Result Inefficient• Number of Telephone Lines- 922,000 only until
1990
Privatization and De-Regulation-1990• 1st Step- From PT&T to PTC with separate legal
identity on 5th Dec 1990.• Next 5 Years- Telephone lines increased to
2,127,344.• Improved network comprising of Earth stations,
Submarine Cables, International Gateway, Terrestrial System etc.
Telecom Re-Organization Act 1996• PTA ,FAB,PTCL,NTC• Installed lines increased to
35,19,877 in 1998
Telecom Sector – Reorganization 1996
Pakistan
5
Pakistan Telecommunication Authority
Pakistan Telecommunication Company Limited
National Telecommunication Corporation
Frequency Allocation Board
Pakistan Telecommunication Employees Trust
Pakistan Telecom AuthorityVISIONVISION
Regulate Telecom SystemRegulate Telecom System
Create Fair CompetitionCreate Fair Competition
Promote ModernizationPromote Modernization
Receive / Dispose Radio Spectrum ApplicationsReceive / Dispose Radio Spectrum Applications
Recommend Government on Policy FormulationRecommend Government on Policy Formulation
Create a fair regulatory regime
to promote investment, encourage
competition, protect consumer
Interest and ensure high
quality ICT services.FunctionsFunctions
6
Frequency Allocation Board
Spectrum MonitoringSpectrum Monitoring
Liaison with International Regulatory BodiesLiaison with International Regulatory Bodies
Resolution of Spill over and Interference IssuesResolution of Spill over and Interference Issues
Spectrum Planning Spectrum Planning
Assignment of Spectrum as Per ITU RecommendAssignment of Spectrum as Per ITU Recommend
FunctionsFunctions
7
History of Cellular Industry in Pakistan
Sect
or G
row
th 19981998
19901990
20042004
2007200720142014
1st GSM OperatorMobilink” Launched Services
• UFONE Started its Operations as 2nd GSM Operator
• 1st Spectrum Auction • Telenor & Warid begin
operations in Pakistan
• Next Generation Mobile Service (NGMS) Spectrum Auctioned.
• Mobilink, Telenor, Ufone acquired license for 3G while CMPAK acquired licenses for both 3G and 4G.
• Warid launched LTE within its existing 1800Mhz assigned band.
• CMPAK “ZONG” Acquire Paktel and start offering Cellular Services
2 Cellular (AMPS) issued to Paktel & Instaphone
19921992
SOURCE: PTA Data 8
Pre- Deregulation -2002Basic Telephone Services (PTCL,NTC)Subscribers 2.27 million
3.32.98
2.6
3.1
2.8
2.4
2.272.18
2.11.99
1.911.85
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
1996 1997 1998 1999 2000 2001
Mil
lio
n
0.0
0.5
1.0
1.5
2.0
2.5
Perc
en
tag
e
FixedLine Subscribers
Fixed Line Teledensity
Pre- Deregulation -2002Mobile (Instaphone, Paktel, Mobilink, Ufone)Subscribers 2.40 million
Key Policies for Telecom Sector
• Fixed line Policy.• Open and Technology Neutral• License Term - 20 Years• Local Loop (LL) – ILF US$ 10,000 /
region - 14 Regions• Wireless Local Loop Option
(Spectrum Auctioned)• Long Distance and International (LDI)
– ILF US$ 500,000• Deregulated incumbent operator
PTCL.• Introduced Access promotion
Contribution, Universal Service Fund Regime.
• Cellular Mobile Policy.• Technology Neutral • 2 New cellular Licenses were issued for
15 years.• Open Auction.• Promoted efficient use of Spectrum.• Fair Competition amongst mobile and
fixed line operators• Role-Out Obligations – 70% Tehsil HQs
within 4 years.• US$ 15M Performance Bond.• Existing Operators to Pay Same Amount
for Renewal.• Promoted Infrastructure sharing, National
Roaming, Mobile Number Portability.
14 Telecom Regions in Pakistan
Results of the De-Regulation Policy 2003
LL (Fixed)LL (Fixed)
84/3884/38
LDILDI
1414
WLLWLL
92/1692/16
84 Licenses38 companies
Total Telecom Revenue reached Rs 129.4 Billion
Results of the Cellular Mobile Policy 2004
• Two new technology Neutral licenses
issued .
•Resulted in fierece Competetion in the
Sector.
•Tremendous growth-
•Negiligible mobile Subscribers of 2.4
million in 2002 has grown to 131.8
million in 2015.
Present Licensing Frameworka- Fixed Line Sector- • Long Distance International (LDI)• Local Loop (LL)
• Fixed Local Loop (FLL)• Wireless Local Loop(WLL)
• Class Value Added Services (CVAS)• Data CVAS• Voice CVAS
• Telecom Infrastructure Provider(TIP)b- Cellular Sector-• Mobile Licenses • Next Generation Mobile Services(NGMS) licenses.c- Wireless (Radio Based Services) Sector-• HF/VHF/UHF Permissions• Aeronautical services• Maritime Services
Present Licensing Framework- Fixed Line Sectora- Long Distance & International (LDI)-
LDI service covers the provision of end to end communication between points that are;
• located in different Regions,• not in the same Local Calling Area, or • located more than 25 Km apart and • located in Pakistan with points that are located outside of Pakistan.
b- Fixed Local Loop(FLL)FLL service covers the access to the Public Switched Network and allows users to make and receive local, long distance and international real time voice telephone calls. FLL with spectrum assignment are Wireless Local Loop (WLL).
c- Telecom Infrastructure Provider (TIP) TIP license authorize the licensee to establish and maintain the infrastructure facilities (Earth Stations, OFC, Radio Communication links,Towers,Poles etc.)in Pakistan to lease, rent out or sell end to end links to telecom operators licensed by PTA. TIP cannot operate the infrastructure.
d- Class Value Added Services (CVAS) Provides VAS using infrastructure of LL,LDI and Cellular licenses. CVAS cannot install its own infrastructure.
Present Licensing Framework- Cellular Sector• Technology neutral Cellular licenses issued to 5 Operators.• Cellular Licensee is allowed to provide:
– Cellular/NMGS services.– Optional incidental Services .
• The License doest not authorizes the licensee to :– Interconnection to a service provider outside Pakistan– Direct access for customers through a NCP.– Fixed Services
• National and International Traffic are routed through LDI licenses.
• Issued for a initial duration of 15 years extendable as per applicable policy.
• Technology neutral Cellular licenses issued to 5 Operators.• Cellular Licensee is allowed to provide:
– Cellular/NMGS services.– Optional incidental Services .
• The License doest not authorizes the licensee to :– Interconnection to a service provider outside Pakistan– Direct access for customers through a NCP.– Fixed Services
• National and International Traffic are routed through LDI licenses.
• Issued for a initial duration of 15 years extendable as per applicable policy.
PAKISTAN TELECOM SECTOR
SPECTRUM ASSIGNMENT FOR MOBILE LICENSES FOR GSM-2G
19
Pakistan Telecom Authority
Cellular Sector Spectrum Assignments in 1800 MHz
Cellular Sector Spectrum Assignments in 2100 MHz
Telecom Indicators –Teledensity
Broadband Market Share by Technology
Cellular Subscribers growth
0
20
40
60
80
100
120
140
5.012.8
34.5
63.2
88.094.3
99.2108.9
120.2128.3
139.9 131.8
Milli
on S
ubscr
ibers
Cellular Market Share April 2015
Basic Telephony Subscribers (FLL + WLL)
3G AND 4G GROWTH (As of June 2015)
Operator 3G Subscribers 3G Covered Cities 4G Subscribers
4G Covered Cities
CMPak 3.5 Million 35 63000 7
Mobilink 3.2 Million 34 - -
Telenor 3.8 Million 71 - -
Ufone 2.5 Million 27 - -
Warid - - 80,000 7
Fiber Deployed Nation wide 3 Parallel LDI Operators in addition to
PTCL(10,400KM) covering all major cities of Pakistan
Link Direct -5000 KM
Wateen -5700 KM
Multinet - 5000 KM
Future Plans
Telecom Policy 2015
a- Policy under finalization with vision of:-• Universally available, affordable and quality telecommunication services
•Open. Competitive and Well managed markets
•Used by all
•Benefit to economy and Society
b- Guiding Principles of Policy Directive:-• Market Driven
•Appropriate Regulation
•Forward looking
•Accelerated Digitalization
•Universal Access
•Government Intervention Only When necessary
Future Plans
Telecom Policy 2015
c – Key areas of Focus:-• Open Sky Policy for Fixed , Broadcast and Mobile Satellite Service
telecommunication services
•Spectrum Refarmng, Sharing and Trading
•Wifi Offloading
•Over the Top Services
•Voice over Internet protocol (VOIP)
•Review of licensing framework in light of best international practices and
emerging ICT services.
•In-house Cabling ,Right of Way
THANKS