Broadband Proliferation in Pakistan through Universal Service Fund Zeshan Haider

Broadband Proliferation in Pakistan through

Universal Service Fund

Zeshan HaiderSenior Manager (International Coordination)

Ministry of Information TechnologyGovernment of [email protected]

ITU Regional Workshop on Bridging the Standardization Gap

(Yangon, Myanmar, 28-29 November 2013)

Contents of Presentation

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• Case Study of Universal Service Fund• USF Broadband Programmes• Special Projects• Challenges & Solutions• ITU-Pakistan Collaboration• ITU-Pakistan Collaboration on Broadband

Yangon, Myanmar, 28-29 November 2013

• Transformation of way of lives • Facilitation of e-services

• Socio-economic benefits

• Achievement of Millennium Development Goals (MDGs)

Why Invest in Broadband Infrastructure?

Yangon, Myanmar, 28-29 November 2013 3

Universal Service Fund Broadband Programme: A Case Study of successful Investment in Broadband Infrastructure


PAK USF MODEL

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• Public-Private-Partnership - rather than purely Public.• Independent - rather than a part of Ministry or

Regulator• A Company – with a fully authorised Board of Directors

Nom. Consumer Groups

Nominee ISPs

Nom. Fixed-Line SPs

Nominee Cellular SPs

Chairman PTA

Member Telecom MoIT

Federal Secretary IT

Minister of IT

CEO USF

PUBLIC PRIVATEUSF Co. Board of Directors


How USF works in Pakistan?

Ministry of

Information Technology

All Licensed TelcosMinistry of

FinanceCabinet Division

“USF Policy Committee”

After competitive Bidding

& Tech. Audits

1 Rep. each1.5% of Revenues

USF Co.‘Company’ under Companies Act 1984

Government acts as a “Trustee”!

7Yangon, Myanmar, 28-29 November 2013

USF Rules & Principles

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Open, transparent biddingAll docs on Website

Retail Tariffs subject to PTA controls

Max 50% accumulation of subsidy

No local monopolies:Obligatory infrastr. share

Technology Neutral

Performance guarantees by subsidy winners

Six-monthly Audits for USFCo.

Lien on Equipment


http://www.usf.org.pk/

USF Programs


USF Programs

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SPECIAL PROJECTS


Broadband for

un-served urban areas


USF Strategy to spread Broadband

~470 cities & towns: no Broadband available

~470 cities & towns: no Broadband available

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Rural areas:

No PCs, & No Computer- literacy

Rural areas:

No PCs, & No Computer- literacy

11 to 15

large cities: Broadband is available

11 to 15

large cities: Broadband is available

1. Start by targeting Unserved Urban Areas

2. Pay only when given targets are achieved

3. More than one subsidy winner

4. Special emphasis on Education

Target Rural Areas through Community Telecenters


Features of Broadband Program• Reverse Open auction by sealed bidding among USF

contributors

• Subsidy bid on “per-Broadband-connection”

• More than 1 winner - subject to price-matching

• 2/3rd or max 5 bidders can be winners, a fraction counted as 1

• Output Based Assistance – provide connections to get subsidy

• Targets to be achieved within project time to be eligible for subsidy

• Winners to install Educational/Community Broadband Centers (E/CBC)

• Target achievement verification by Tech. Auditors


USF Broadband Program

• Provision of Broadband Internet Services/Connectivity in 2nd/3rd tier cities & towns

• Establishment of Educational Broadband Centers (EBCs)

• Establishment of Community Broadband Centers (CBCs)

• Investment of PKR 7,557,703,815/-

• Benefitting population of 21 Million


Impact of Subsidy on Broadband

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One-time USF

subsidy


Broadband Program – Target Areas/Coverage

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• Total served population - 32M (18%) in major Cities. • Un-served urban Population ~ 26mil(15%) in 11 Telecom Regions,

126 Districts with 470 towns.• ~ 400 (85%) unserved Towns have Population less than 100,000.

Their total Population ~ 50% of Target unserved population


Broadband Program – Achievements

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• So far 7 Projects Launched, • 284 Towns (70% Towns, 17mil population) covered.


Broadband Achievements

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Contracts signed for 491,250 Broadband

Subscribers

474,532 Broadband Subscribers

achieved1,036 Educational Broadband Centers

Established

302 Community Broadband Centers

Established


BROADBAND PROGRAM STATUS


Advertised Broadband Projects

• Under these advertised projects a total of 668 EBCs and 145 CBCs will be established


Future Broadband projects


Computer Labs for Higher Sec.

Schools, Colleges and Libraries

in the area:

• Free provision/installation

• No Monthly charges for 1 year

• 5 PCs Lab

• Training of 2 Trainers

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Educational Broadband Centers

-> Operational : 1,036

-> In progress : 262

-> Advertised : 668

“Educational Broadband Centers” (EBCs)

Emphasis on Education + Community

Community Broadband Centers

-> Operational: 302

-> In progress : 98

-> Advertised : 145


Broadband Subscribers in Pakistan

Year Number of Subscribers

FY 2005-06 26,611

FY 2006-07 45,153

FY 2007-08 168,082

FY 2008-09 413,809

FY 2009-10 900,648

FY 2010-11 1,491,491

FY 2011-12 2,101,315

FY 2012 - 13 2,721,659

August 2013 2,889,155


Special Projects - Scope


Rural Areas Broadband - Telecenters

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~ 56,000 small

villages in Pakistan.


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• Providing access to telecom services for people in the un-served and under-served rural and semi-urban areas

• Each UTC will have; - Connecting internet through a 2Mbps broadband- Powered through renewable energy, - 10 laptops and other essential network elements (printer/scanner/copier/fax, etc)

• For the benefit of communities living in remote areas of Pakistan, a pilot project of establishing UTCs at 35 locations across Pakistan has been initiated

Upcoming Special ProjectsUniversal Telecenters


Challenges


Challenges/Hurdles

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• High taxes coupled with high capital/operational expenses

• Security Situation

• Natural Calamities

• Power crisis;

• Access problems

• O&M

• Inflation


Challenges/Hurdles• Reaching un-served and under-served areas

• Lack of Demand- Affordability-Awareness

• Low Revenues for investors

• PC Penetration

• Lack of Education

• Content Development • Country-oriented policiesYangon, Myanmar, 28-29 November 2013 29

• Extending Broadband to un-served areas

• Improving affordability

• Viewing Broadband as an eco-system

• Creating Awareness

• Up-gradation of network capability levels

• Conducive public policies

• Public-Private Partnerships

How to overcome challenges?


Telecenter Challenges...

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Someone must take responsibility with stake in the venture– not govt!

High speed media (like Fiber) mostly unavailable, areas difficult to reach

Basic knowledge of how to operate computers is lacking

What will the villagers do with these?

PCs, Electricity, Repair & Maintenance


ITU – Pakistan Collaboration for Broadband


Technical Assistance by ITU

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• One of the strategic goals of Telecommunication Development Sector of ITU (ITU-D) is the– “To assist the membership in maximizing the utilization of appropriate

new technologies, including broadband, – to develop their telecommunication / ICT infrastructure and services,

and – to design and deploy resilient telecommunication / ICT network

infrastructures”.• One of the key actions of ITU Operational Plan 2012 – 15 is

– “to enhance the level of assistance and support to administrations and ITU-D customers, taking advantage of the high expertise of the BDT staff”.

• ITU assistance under the ITU Asia-Pacific Actions and Initiatives– international best practices & research, – statistical data availability and – professional/consultant help

ITU-Pakistan Collaboration

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• Secretary General ITU and Regional Director ITU for A&P visited Pakistan in May 2012

• ITU CoE Node for Policy & Regulation in Pakistan• Consultancies secured from ITU on policy matters

– Establishment of Multi-Purpose Telecommunity Centres in Rural Areas (2007-08).

– Spectrum Management Policy (2010)– National Broadband Plan for Pakistan (2012)– Implementation of E-Government in Pakistan (2013)


ITU-Pakistan Collaboration for Broadband

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• Under the ITU Operational Plan 2012, ITU solicited proposal from Administration of Pakistan for assistance from ITU

• MoIT submitted a proposal for the Development of a “National Broadband Master Plan” for Pakistan which was approved by ITU for implementation.

• Following ITU mission visited Pakistan in September 2012:– Mr Jim Holmes, ITU Expert– Mr Sameer Sharma, Senior Advisor, ITU• ITU mission held interviews, surveys and meetings with

top-level leadership of the ICTs related entities of Pakistan


ITU-Pakistan Collaboration for Broadband

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• A “Broadband Industry Workshop” was also organized in which the different stakeholders of the broadband industry of Pakistan had an opportunity to interact with the ITU delegation.

• ITU Consultancy Team formulated and forwarded a draft of National Broadband Strategic Action Plan setting up Goals, specific Targets for each goal, Responsible Stakeholder against each target and Timelines against each target.

• The plan is being consumed as a baseline document for the review process of Telecom Sector Policies, which are currently under review by the Ministry of IT, Pakistan.

• Role of ITU is commendable for providing such free of cost consultancies to low income and least developed countries


Thank you


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Broadband Proliferation in Pakistan through Universal Service Fund Zeshan Haider

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