21-10-01

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LICENSING ASPECTS

Director (Wireless) ,PTA

Pakistan Telecom A

uthority

Words are usually

forgotten but

pictures leave their

mark on the mind.

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Presentation Outline

Licensing Aspects

o Wireless Licensing

• WLL &Mobile

• RBS Licensing

o Wireline Licensing

• Fixed

o Technology and Service Neutrality

Pakistan Telecom A

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ORGANIZATION OF LICENSING DIVISION

Licensing Division

Wireline Directorate

WLL & Mobile Directorate

Radio Base Services

Directorate

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Pakistan Telecom A

uthoritySUPPORTING DIVISIONS OF PTA

Licensing

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Wireless Local Loop and

Mobile Directorate

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Pakistan Telecom A

uthorityScheme of Presentation

Composition of WLL & Mobile directorate

Significance of Electromagnetic Spectrum

International Discussion

International types of Licensing

Key Policies for Telecom Sector in Pakistan

Overview of Mobile and WLL Sector

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CONT…

Types of Licenses issued.

WLL Licenses Aspects (Spectrum Assignments)

Mobile Licenses Aspects (Spectrum Assignments)

Case study and Coverage- Spectrum Auction-

NGMS

Challenges, Current and Future plans

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Director (WLL&M)

Assistant Director (WLL)

Assistant (WLL)

Assistant Director (Mobile)

Assistant (Mobile)

Assistant (Tower)

COMPOSITION OF WLL &M DIRECTORATE

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SIGNIFICANCE OF SPECTRUM

Radiofrequency management is done

by experts who meld years of experience

with a curious blend of regulations,

electronics, politics and not a little bit of

larceny. They justify requirements, horse‑trade, coerce, bluff and gamble with an

intuition that cannot be taught other than by

long experience'

Vice Admiral Jon L. Boyes

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SIGNIFICANCE OF RADIO FREQUENCY SPECTRUMScarce Resource Defined in Section 2 (qc) of Telecom Re-Organization Act 1996

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Pakistan Telecom A

uthorityBand name Abbreviation ITU band

Frequencyand

wavelength in airExample uses

Tremendously low frequency

TLF< 3 Hz

> 100,000 kmNatural and artificial electromagnetic noise

Extremely low frequency ELF3–30 Hz

100,000 km – 10,000 kmCommunication with submarines

Super low frequency SLF30–300 Hz

10,000 km – 1000 kmCommunication with

submarines

Ultra low frequency ULF300–3000 Hz

1000 km – 100 kmSubmarine communication, communication within mines

Very low frequency VLF 43–30 kHz

100 km – 10 km

Navigation, time signals, submarine communication,

wireless heart rate monitors, geophysics

Low frequency LF 530–300 kHz

10 km – 1 km

Navigation, clock time signals, AM longwave broadcasting

(Europe and parts of Asia), RFID, amateur radio

Medium frequency MF 6300–3000 kHz1 km – 100 m

AM (medium-wave) broadcasts, amateur radio,

avalanche beacons

High frequency HF 73–30 MHz

100 m – 10 m

Shortwave broadcasts, citizens' band radio, amateur radio and over-the-horizon aviation communications,

RFID, over-the-horizon radar,

automatic link establishment (ALE) /

near-vertical incidence skywave (NVIS) radio

communications, marine and mobile radio telephony

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Very high frequency VHF 830–300 MHz10 m – 1 m

FM, television broadcasts and line-of-sight ground-to-aircraft

and aircraft-to-aircraft communications, land mobile and maritime mobile communications,

amateur radio, weather radio

Ultra high frequency UHF 9300–3000 MHz1 m – 100 mm

Television broadcasts, microwave oven, microwave

devices/communications, radio astronomy, mobile phones, wireless LAN, Bluetooth, ZigBee, GPS and two-way radios such as

land mobile, FRS and GMRS radios, amateur radio

Super high frequency SHF 103–30 GHz

100 mm – 10 mm

Radio astronomy, microwave devices/communications, wireless

LAN, most modern radars, communications satellites,

satellite television broadcasting, DBS, amateur radio

Extremely high frequency EHF 1130–300 GHz

10 mm – 1 mm

Radio astronomy, high-frequency microwave radio relay,

microwave remote sensing, amateur radio,

directed-energy weapon, millimeter wave scanner

Terahertz or Tremendously high frequency

THz or THF 12300–3,000 GHz1 mm – 100 μm

Terahertz imaging – a potential replacement for X-rays in some medical applications, ultrafast

molecular dynamics, condensed-matter physics,

terahertz time-domain spectroscopy

, terahertz computing/communications, sub-mm remote sensing, amateur radio

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Pakistan Telecom A

uthorityITU TELECOM REGIONS

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Spectrum for telecommunication services are assigned

under the Policy directions of Federal Government (MoIT) as

Per Section 8(2) of the Act.

Spectrum is managed by Frequency Allocation Board (FAB). Pakistan Comes under ITU-Region-3

Pakistan Frequency allocation Table defines spectrum allocation

from 9Khz- 1000Ghz inline with ITU – Region 3 allocation (

http://fab.gov.pk/images/pdf/pakistantable.pdf)

Pakistan participates in APT Working Group for Spectrum

Management and WRC preparation Group.

RADIO FREQUENCY SPECTRUM MANAGEMENT

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Pakistan Telecom A

uthorityRADIO FREQUENCY SPECTRUM ALLOCATION CHART

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International Discussion

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Pakistan Telecom A

uthorityREGULATION MODELS

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Getting the Balance Right

CompetitionSelf

regulationTargeted funding

Consumer safeguards

Consumer Awareness

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Pakistan Telecom Authority 22

BLURRING BOUNDARIES

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TYPES OF LICENSING REGIMES/STREAMS Vertical Licensing

Where the licensee has the right to establish, maintain and provide services on the network

Licenses include, Cellular Mobile, Long Distance International, Local Loop licenses etc.

Horizontal Licensing Where different licenses are required to establish and operate

a telecom network and provide services on the network Licenses include Network facility provider, Network service

provider, Application service provider etc. In Pakistan Vertical Licensing regime is being followed,

where services based licensees are issued. The Cellular Mobile and WLL licensees are issued on

technology neutral basis.

Vertical Licensing Where the Licensee has the right to Establish, Maintain and

provide services on the Network Licenses include, Cellular Mobile, Long Distance International,

Local Loop Licenses etc. Horizontal Licensing

Where different Licenses are required to establish and operate a telecom network and provide services on the network

Licenses include Network Facility provider, Network service provider, Application service provider etc.

In Pakistan: Vertical Licensing regime is being followed, where services based licensees are issued.

The Cellular Mobile and WLL licensees are issued on Technology Neutral basis.

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Pakistan Telecom A

uthorityVERTICAL MODEL

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Pakistan Telecom A

uthorityHORIZONTAL MODEL

Dependence on Old TechnologiesPTCL(State Owned Incumbent)

Monopoly in Fixed Line

4.4 Million Subscribers in 2004

Cellular MobilePaktel (AMPS), 1990

Instaphone (D-AMPS), 1991

Mobilink (GSM), 1992

Ufone (GSM), 1998

5 Million Subscribers in 2004

Low Teledensity & Slow Growth

High Tariffs

QoS & Customer Care Issues

Low Penetration & Less Coverage

High Tariffs

QoS Issues

CPP Regime implemented in 2001

State of the Industry (1996 – 2004)State of the Industry (1996 – 2004)

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KEY POLICIES FOR TELECOM SECTOR IN PAKISTAN

• Fixed line Sector Policy.• Open and Technology

Neutral• License Term - 20 Years• Local Loop (LL) – ILF US$

10,000 / region - 14 Regions

• Scope- LL services In a licensed region. LM for WLL.

• Wireless Local Loop Option (Spectrum Auctioned)

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

• Deregulated incumbent operator PTCL.

• Introduced APC, USF, R&D, ARFSF Regime.

De-Regulation Policy 2003

• Mobile Sector 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

• Existing Operators to Pay Same Amount for Renewal.

• Promoted Infrastructure sharing, National Roaming, Mobile Number Portability.

• ASAF, R&D,USF,ARD Fees.

Cellular Mobile Policy 2004

• Mobile Sector Policy.• Technologies 3G/4G and

above.• 4 New NGMS Licenses

were issued for 15 years.• Open SMRA Auction.• Promoted efficient use of

Spectrum.• Existing Operators to Pay

Same Amount for Renewal.

• Promoted use of advanced technologies, Infrastructure sharing, National Roaming, Mobile Number Portability.

• ASAF,R&D,USF,ARD Fees.

NGMS Policy 2013-14

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Telecom Overview : Evolution of Cellular Industry in Pakistan

Sect

or G

row

th 19981998

19901990

2004200420072007

20142014

• 1st GSM Operator “Mobilink” 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

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Wireless local Loop (WLL) Licenses

Issued under the provisions of De-Regulation Policy for Fixed Line Sector.

Local Loop licenses with Spectrum Assignment in 450,479, 1900,3500

MHz.

Country Divided into 14 telecom Regions.

Scope includes provision of Fixed services through predefined cell with

limited mobility. Mobile Licenses

Issued under Cellular Mobile Policy 2004

2G (GSM) Licenses

3G/4G (NGMS) Next Generation Mobile Services licenses. Respond to

relevant queries from local and foreign investors especially in case of 3G,

MVNO,WLL Auction etc.

Scope includes provision of Mobile Services.

TYPES OF LICENSES

Licenses Issued

Government Interventions 1996Telecom Act, PTA, PTCL Privatization

2004 Telecom Policies and new licenses

2004

CELLULAR LDI

LL (Fixed) WLL

142

84/38 92/16

84 Licenses & 38 Companies 92 Licenses & 16 CompaniesAuctioned for PKR14 B

2 New Licenses were issued

Open Auction

US$ 291M Each

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Pakistan Telecom A

uthority14 TELECOM REGIONS IN PAKISTAN AND 3 IN AJK &GB

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Pakistan Telecom A

uthorityWLL LICENSES IN PAKISTAN

Dv Com Data (Pvt.) ltd

Metrotel

Super Dialogue

Metrotel

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Mobile Operator Name Brand Name

Pakistan Mobile Communications (Private) Limited

Mobilink

CMPak Limited Zong

Telenor Pakistan (Private) Limited Telenor

Warid Telecom (Private) Limited Warid

Pakistan Telecommunication Mobile Limited Ufone

Special Communications Organization (AJ&K and GB only)

Scom

CELLULAR LICENSES IN PAKISTAN AND AJK/GB

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ARTICLE 1 - GRANT OF LICENCE (Scope, Effective Date) ARTICLE 2 - RIGHTS OF THE LICENSEE (Numbers, Short Codes, Portability) ARTICLE 3 - OBLIGATIONS OF THE LICENSEE (Compliance ,Roll out,

R&D,USF,APC,N/w Information) ARTICLE 4 - FEES AND OTHER CHARGES (Payment Conditions) ARTICLE 5- RADIO FREQUENCY SPECTRUM ASSIGNMENT(Its use ,Radio

Apparatus and Reassignment) ARTICLE 6- GENERAL CONDITIONS (N/w services, Inspection, Commencement,

QoS, Type approval of CPE) ARTICLE 7- RELATIONS WITH CUSTOMERS(CSAF,CCP & Complaint contents) ARTICLE 8- TARIFFS (Regulations of Prices for SMP) ARTICLE 9- RADIO FREQUENCY SPECTRUM ASSIGNMENT(Its use ,Radio

Apparatus and Reassignment) ARTICLE 10 - INFRACTIONS AND SANCTIONS ARTICLE 11 - TERMINATION AND AMENDMENT ARTICLE 12 – GENERAL ARTICLE 13 - INTERPRETATION AND DEFINITIONS Appendices -1-2-3 (Regions, Spectrum assignment, Qos parameters)

KEY TERMS AND CONDITIONS OF WLL & CELLULAR LICENSE

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Licensee is allowed to provide: Cellular/NMGS services along with Emergency Services Optional Services incidental to Cellular/NGMS services

The License does not authorizes the licensee to : Interconnection of Licensed System to a service provider outside

Pakistan Direct access for customers through a Network Connection Point Fixed Services

National and International Traffic to be routed through LDI operator

The licenses are issued for a period of 15 years which are further extendable for 15 years subject to satisfactory performance of the licensee

SCOPE AND TENURE OF CELLULAR MOBILE LICENSES

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The licensee is obliged to extend its network to certain percentage of the population/area within a specified time.

The licensee have to submit a USD 15 Million bank guarantee against the roll out obligation.

Apart from the license fee the licensee has to pay the following fee and contributions: 0.5 % of the gross revenue as Annual license fee 1.5 % of the gross revenue as contribution towards universal

service fund 0.5% of the gross revenue as contribution towards research and

development fund

OBLIGATIONS AND FEE RELATED ISSUES

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Geographic and non- geographic numbering series, as well as short codes has been national numbering Plan.

Numbering Allocation and Administration Regulations 2011 defines the procedure for assigning the scarce resource.

http://www.pta.gov.pk/media/naar_2011_reg.pdf

NUMBERING

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Pakistan Telecom A

uthorityROLL OUT OBLIGATIONS OF 3G LICENSES

PhaseTime from the Effective Date*

3G Coverage requirements

First phase 9 months Minimum 5 cities including four Provincial and Federal Capital. Coverage from at least 20% of existing sites or coverage of 20% of the City Coverage Area (whichever is greater) to provide NGMS

Second phase

18 months (1 year and 6 months)

Coverage of 10 further cities, minimum two in each province with coverage from at least 20% of existing sites or coverage of 20% of the 2G Coverage Area (whichever is greater) to provide NGMS

Third phase 48 months (4 years)

Provide coverage of 75% of District headquarters (minimum 4 District Headquarters in each province)

Fourth phase

72 months (6 years)

Provide coverage of 50% of all Tehsil headquarters (minimum 20 Tehsil Headquarters in each province)

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Pakistan Telecom A

uthorityROLL OUT OBLIGATIONS OF 4G LICENSES

PhaseTime from the Effective Date*

4G/LTE Coverage requirements

First phase 12 months (1 year) NGMS presence in a minimum of 5 cities including 4 Provincial capitals and the Federal Capital

Second phase

36 months (3 years) Minimum coverage of 10 further cities, one of which must be located in each of the four provinces, with coverage of 25% of 3G Coverage Area

Third phase 60 months (5 years) Provide coverage of 50% of District headquarters

Fourth phase 84 months (7 years) Provide coverage of 25% of Tehsil headquarters

SPECTRUM ASSIGNMENT FOR MOBILE LICENSES FOR GSM-2G

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SPECTRUM ASSIGNMENT FOR MOBILE LICENSES IN 1800 MHZ

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Pakistan Telecom A

uthoritySPECTRUM ASSIGNMENT FOR NGMS LICENSES

SPECTRUM ASSIGNMENT FOR WLL

3.5 GHz

3415.25 MHz 3562.25 MHz

21 MHZ TDD assignment

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Access Spectrum Backhaul spectrum

Mobile 900, 1800 , 2100 (MHz)

10/11/12/14/18/22/38/71 GHz.Spec Assigned on Link by Link basis

Wireless Local Loop (WLL)

450 MHz, 479 MHz 1900MHz, 3500 MHz,

14/15/22/23/24/38/71 GHz.Spec Assigned on Link by Link basis

Radio Base Services(RBS)

3-300 MHz (HF,VHF)

CURRENT ACCESS/BACKHAUL SPECTRUM ASSIGNMENTS

CASE STUDY- NGMS AUCTION PROCESS IN PAKISTAN 2014

GOP issued Policy Directive for Auction of Spectrum for Next

Generation Mobile Services (NGMS) in Pakistan in October 2013

with addendums in 17th March & 21st April 2014 having salient

features:-

• Transparent, Competitive auction for NGMS in Pakistan.

• 30 MHz paired Spectrum in 1.9/2.1 (GHz) band

• 20 MHz paired Spectrum in 1800Mhz band.

• 7.38 MHz paired Spectrum in 850MHz band.

• PTA to hire Internationally reputed Consultant for:

• Identifying the blocks and their reserve price.

• Design and management of auction process.

• Developing IM and license templates.

CASE STUDY NGMS AUCTION PROCESS (CONTINUED)

• PTA hired Internationally reputed Consultant through open and transparent hiring process.

• The Consultant assisted PTA in accomplishing the:

• Market Assessment.

• Industry Consultation.

• Spectrum Valuation.

• Auction Design using Simultaneous Multiple Round Ascending

Auction (SMRA).

• Mock Auction for Prospective bidders

Market assessment

Spectrum strategy and valuation

2. Auction design and preparation

Auction design

Auction software

Auction preparation

Auction management

Post auction support

1. Spectrum strategy 3.In-auction support

4. Post-auction support

1A 1B 2A 2B 2C 3 4

• IM published in February 2014 for auction of frequency slots.

• 2 x 30 MHz FDD in 2100 MHz band

• 2 x 20 MHz FDD in 1800 MHz band

• 2 x 7.38 MHz FDD in 850 MHz band (offered for new entrants only) • Minimum roll out obligations defined for 2100,1800 & 850 MHz and segmented

into 4 phases.• New entrant was offered one year extension for Roll out in 2100 MHz.

1st Phase(9 Month)

Coverage in Minimum 5 major cities

2nd Phase (1.5 Year)

Coverage in 10 further Cities

3rd Phase(4 Year)

Coverage in 75% of District HQ

4th Phase-(7 Year)

Coverage in 50%of all Tehsil HQ

• Minimum user data rate of 256Kbps typical defined for 3G.

CASE STUDY NGMS AUCTION PROCESS (CONTINUED)

• Roll out obligations relaxed for 4G roll out in 1800 MHz.

1st Phase(1.5 year)

Coverage in Minimum 5 major

cities

2nd Phase (3.5 Year)

Coverage in 10 further Cities

3rd Phase(6 Year)

Coverage in 50% of District HQ

4th Phase-(8 Year)

Coverage in 25%of all Tehsil HQ

• Minimum user data rate of 2Mbps typical defined for 4G.

IM also briefed other obligations pertaining to National Roaming, Infrastructure sharing and QoS obligations.

CASE STUDY NGMS AUCTION PROCESS (CONTINUED)

3G/4G AUCTION RESULTS

• Sealed bids were invited from the prospective bidders along

with Bid Earnest Money in 1st Stage.

• Due to excess demand of spectrum the process went into 2nd

Stage.

• SMRA Auction was conducted on 3 April 2014.

• All the four bidders won the spectrum amongst the available lots

in 2100 & 1800 MHz.

• The auction met the government’s targeted revenue of approx.

1.2 billion USD

• One block of 1800MHz and 850 MHz remain unsold.

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

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Pakistan Telecom A

uthorityCOMBINED GSM COVERAGE

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Pakistan Telecom A

uthorityCOMBINED 3G COVERAGE

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Pakistan Telecom A

uthorityCOMBINED 4G COVERAGE

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Pakistan Telecom A

uthorityCOMBINED WLL COVERAGE

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Pakistan Telecom (Re-Organization) Act, 1996 - protect the right of users and Licensees :

Right of Way

Tax

BVS

Spill over of Signals

CHALLENGES- INDUSTRY

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RoW is one of the critical factor in expansion of Cellular & WLL network infrastructure across the country.

Policies and Telecom Act doesn’t impose direction on PTA to regulate the BTS towers infrastructure.

All contracts, leasing of land, rental, NOC fees etc by operators were and are negotiated by operators themselves.

As per license clause “The licensee shall have the right for the ROW to construct its network subject to conditions conditions laid down by concerned agencies”.

In Aug 2010,Memorandum of Understanding’s (MOU) were signed between PTA and CMTO’s for encouraging Passive infrastructure sharing to reduce cluttering of towers.

Inter Provincial Coordination Committee (IPCC) of Federal Government was formulated in 1992 and reconstituted in 1996 to coordinate between federal government and the provinces on economic, social and administrative issues.

In Feb 2009, IPCC directed all the provincial governments to charge a nominal one time NOC fee of PKR 30,000/. Organizations however continued to demand their exorbitant fees.

RIGHT OF WAY

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RADIO FREQUENCY SPILL OVER

o Signals emitting across international border that may interfere either • With wireless telecommunication network s

Or• Used to make calls outside international border.

o RF coordination is required to reduce spill over and harmful frequency interference

o Constitution and Convention of ITU urges the Member States to apply their utmost will and efforts for the harmonization and safe/ interference free operation of radio frequency spectrum.

o PTA had also proposed a comprehensive MoU and shared with ATRA through MOFA and Afghan Embassy

• Standard procedures as per ITU Radio Regulations.• Rules for frequency assignment for provision of

telecommunication services in line with ITU defined bands

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Current Plan Auction of Left over Spectrum for NGMS in Pakistan Spectrum Auction in AJK &GB WLL Spectrum Auction in Pakistan and AJK &GB

Future Plan Devising licensing framework in the light of latest trends as

per the directions of Federal Government (MoIT). Stake holders Consultation on OTT Services.Opportunities for spectrum sharingVacation of 700 and 2300 MHz band

PLANS

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RADIO BASE SERVICES Directorate

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Pakistan Telecom A

uthoritySEQUENCE OF RBS DIRECTORATE

Composition of RBS directorate

Licensing framework

Master Frequency Register

Regulatory dues

Spectrum monitoring

Current and future plans

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Director (RBS)

Dpy. Director (RBS)

Assistant (RBS-1)

Assistant Director (RBS)

Assistant-2 (RBS)

Assistant-3 (RBS)

COMPOSITION OF RBS DIRECTORATE

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Legal Provisions Pakistan Telecom Re-Organization Act-1996

Section 43 (5) Every application for radio assignment is to be made to Authority Within 30 days shall refer to Frequency Allocation Board(FAB)

Section 43 (6) May allocate & classify services within 90 days

Section 5 (2) (a) Authority shall grant license

Licensed Radio Services HF/VHF/UHF Aeronautical mobile Maritime communication

RBS DIRECTORATE

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uthorityHF/VHF/UHF

HF (3 -30 MHz) Military and governmental communication systems Aviation air-to-ground communications Amateur radio Maritime services Radio Location (radar systems) Global Maritime Distress and Safety System (GMDSS) communication

VHF (30 -300 MHz) FM Radio Broadcasting,  Television Broadcasting,  Land Mobile Radio System (emergency, business, private use and military), Amateur Radio and Marine Communications, Air traffic control communications

and air navigation systems.

UHF (300 MHz-3 GHz) Radio Trunking, Land Mobile Communication, WLL, Microwave data Links,

Television broadcasting, satellite communication, Cellular Band etc.

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Pakistan Telecom A

uthorityLICENSING PROCEDURE-HF/VHF/UHF

Application on prescribed forms -14 sets

Equipment details

Quantity, make, o/p power, radius of services etc

Network plan, company info etc

Forwarded to FAB if evaluation is successful

FAB examines and assign frequency spot(s)

Circulates to its board members for NOC

If unanimously cleared/approved

Spectrum is allocated

License granted subject to payment of regulatory dues

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Pakistan Telecom A

uthorityLICENSING PROCEDURE- AERONAUTICAL SERVICES

Aeronautical Services: ( used to provide services for aircraft communication) Further Subdivided into Aircraft registration

Application on prescribed forms• Details about the aircraft• Equipment installed• CAA approvals (C of A, C of R)• Forwarded to MoI for NOC if evaluation is successful• License granted on receipt of NOC

Ground to Air communication Application on prescribed forms

Equipment, Site & Aircraft details Location, make, o/p power, etc Call sign, Aircraft type, company info etc

Forwarded to FAB if evaluation is successful FAB examines and assign frequency spot(s) in Aeronautical band (Aeronautical

Navigation 108 to 117MHz Circulates to its board members for NOC If unanimously cleared/approved Spectrum is allocated License granted subject to payment of regulatory dues

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Pakistan Telecom A

uthorityLICENSING PROCEDURE- MARITIME COMMUNICATION

Maritime Communication Services: ( used to provide ship to ship and ship to coastal station communication.

Application on prescribed forms - 14 sets Site & Equipment details

Quantity, make, o/p power, radius of services, location etc Network plan, company info etc

Forwarded to FAB if evaluation is successful FAB examines and assign frequency spot(s) Circulates to its board members for NOC If unanimously cleared/approved Spectrum is allocated in maritime band (Specified spots b/w 156 ~

162 MHz) License granted subject to payment of regulatory dues

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uthorityRBS LICENSE TERMS AND CONDITIONS

Scope of Operation

Type Approval of Equipment

Transfer of licensesNational Security

Expiration and renewal of license

Fee & Charges• Application of

Late Payment Charges

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Pakistan Telecom A

uthorityCURRENT STATUS OF RBS LICENSES

S.No License Issued

1 HF/VHF/UHF 745

2 Aeronautical Services 78

3 Maritime Communication NIL ** 1 expired in 2009

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Pakistan Telecom A

uthorityMASTER FREQUENCY REGISTER (MFR)BY FAB

Frequency Allocation Board (FAB) established under Section 42 of Pakistan Telecom (Re-organization Act) 1996.

Powers & Functions of Board Allocate and assign portions of RF Compile and keep up to date list of frequency assignments made

FAB maintains MFR that Contains the entire valid spectrum assignments made

FAB maintains and is also the custodian MFR

Continuously updated with respect to new assignments and withdrawals

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Pakistan Telecom A

uthorityREGULATORY DUES OF RBS LICENSES

A comprehensive spectrum charging mechanism is enforced since 2001 Salient features

Output power of equipment based charging Commercial and Non-commercial tariffs Government Departments are being subsidized Annual basis and advance charging

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SPECTRUM CHARGING REGIME

Service Description Rate (Pak Rs.)

Aeronautical Mobile Staion License (Aircraft 5000

Ground Station for Air trafic control 5000

Maritime Mobile Staion License (Ships) 5000

Coastal Station for Ships 4000

Non Commericial Commericial

HF - Base Station

Upto 20 Watt. 2500 5000

Above 20 Watt. 4000 8000

Above 50 Watt. 6000 12000

Above 100 Watt. 7500 15000

VHF - Base Station(For 12.5 KHz Bandwidth)

Upto 10 Watt. 1000 2500

Above 10 Watt. 2000 5000

Above 25 Watt. 4000 7500

Above 50 Watt. 8000 10000

VHF - Mobile Station(For 12.5 KHz Bandwidth)

Less than 5Watt. 1000 1250

5 Watt and Above. 2000 2500

Above 50 Watt. 4000 370

VHF - Walkie Talkie(For 12.5 KHz Bandwidth)

Upto 10 Watt. 1000 1000

Above 10 Watt. 2000 1000

Above 25 Watt. 4000 2000

Above 50 Watt. 6000 3000

Initial License Fee 5000

For 25KHz Bandwidth The charges will be 100% more than the approved rates for 12.5KHz bandwidth

UHF Based on allocated spectrum and bandwidth

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Pakistan Telecom A

uthorityUN AUTHORIZED USAGE OF SPECTRUM

FAB monitors the spectrum users across Pakistan on monthly basis Identifies unauthorized spectrum users

Provides all relevant information to PTA PTA licensees unauthorized usage Non-licensee unauthorized usage

All unauthorized users are given warning and legal notices On persistent unauthorized usage

Section 31 proceedings against the non-licensee Complaint lodged with FIA and raid is conducted

Equipment seized and challan filed in courts Section 23 proceedings against licensees

Show Cause Notice is served Hearing is held Determination is passed by the Authority

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uthorityRECOVERY OF UN AUTHORIZED USAGE OF SPECTRUM Non licensee

Unauthorized spectrum usage charges are conveyed to the court by PTA On the direction of court/ FIA payments are made by the violators

Licensee Unauthorized usage charges are conveyed for payment In case of non-compliance, section 23 proceedings are initiated

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Pakistan Telecom A

uthorityPLANS

Current Plans Implementation of Board decisions

All pre 96 allocations have been withdrawn Licenses are being cancelled Encouraged to re-apply

Streamlining of the licenses shifting the licenses from 1996 to 2010 to the existing licensing regime for

level playing field

Future Plans Revision of Spectrum Charging Regime

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Pakistan Telecom A

uthority

Wireline Directorate

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Pakistan Telecom A

uthoritySEQUENCE OF PRESENTATION

Composition Legal Framework Classification and Status Eligibility Criteria Issuance Procedure Compliance and Enforcement

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Pakistan Telecom A

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Director (WLL&M)

Dpy.Director (Licensing

Assistant (CVAS)

Assistant Director (CVAS)

Assistant (LDI) Assistant (LL)

Assistant Director (LDI)

COMPOSITION OF WIRELINE DIRECTORATE

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Pakistan Telecom A

uthorityLEGAL FRAMEWORK

Information Memorandum Description of Services License Templates

Regulations Licensing Fees Rights and Obligations

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Pakistan Telecom A

uthorityCLASSIFICATION Data CVAS License and Voice CVAS License Services – Data CVAS

DataInternetVehicle Tracking

Services – Voice CVASCard Pay Phone ServicesPremium Rate ServicesTrunk Radio Services

RegionPakistanProvincialAJK

 Rollout Commencement of the licensed services within one year.

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Pakistan Telecom A

uthorityDATA AND VOICE CVAS LICENSES

Criteria Incorporation with SECP, firm, trust, NGO, Political Party Technical Qualifications Technical Experience Business Plan Technical Plan Undertakings etc

Fee Processing Fee: Rs. 5,500/-. Initial License Fee: Rs. 300,000/- for National Level. Initial License Fee: Rs. 100,000/- for Provincial Level. Initial License Fee: Rs. 50,000/- for Baluchistan Province. Annual Regulatory Dues: 0.5% of Gross Revenue

Duration 15 Years

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Pakistan Telecom A

uthorityCVAS REGISTRATION

Services SMS Aggregator Services. Content Services. Voice Mail Services

Criteria Incorporation with SECP, firm, trust, NGO, Political Party Technical Qualifications Technical Experience Technical Plan Undertakings etc

Fee Registration Fee: Rs. 10,000/-

Duration 5 Years

Region Pakistan AJK

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Pakistan Telecom A

uthorityDATA CVAS LICENSES ISSUED

20072008

20092010

20112012

20132014

2015 (Till May)

0

5

10

15

20

25

30

35

40

45

50

2730

16

25

30

36

30

48

17

Data

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Pakistan Telecom A

uthorityVOICE CVAS LICENSES ISSUED

20072008

20092010

20112012

20132014

2015 (Till May)

0

2

4

6

8

10

12

14

16

18

20 19

55

66 6

2

4

1

Voice

84

Pakistan Telecom A

uthorityCVAS REGISTRATION ISSUED

20072008

20092010

20112012

20132014

2015 (Till May)

0

5

10

15

20

25

30

35

40

4

2

10

14

32

28

26

38

11

Registration

85

Pakistan Telecom A

uthorityCVAS LICENSES AND REGISTRATIONS ISSUED

2007 2008 2009 2010 2011 2012 2013 2014 2015 (Till May)

0

10

20

30

40

50

60

42

10

14

32

28

26

38

11

27

30

16

25

30

36

30

48

1719

5 56 6 6

24

1

Registration

Data

Voice

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Pakistan Telecom A

uthorityELIGIBILITY CRITERIA & ISSUANCE PROCEDURE Financial Strength Relevant Experience Technical Competence Viability of Business Plan

•Open, Transparent, •Evaluation

• Technical• Financial• Legal

•Liabilities• O/s Dues• Other Default

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Pakistan Telecom A

uthorityBACKGROUND OF LL &LDI LICENSES Licensing Since 1999 Integrated licenses issued to the incumbents under the Act Restriction from issuance of new licenses till the monopoly

period of PTCL (till 2002) De-Regulation Policy for the Telecommunication Sector, 2003

FLL & LDI licensing under the De-Regulation Policy

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Pakistan Telecom A

uthorityCLASSIFICATION OF LDI &LL

Long Distance & International (LDI) LDI service covers the provision of end to end

communication between points; that are located in different Regions,

that are not in the same Local Calling Area, or

that are located more than 25 Km apart and

that are located in Pakistan with points that are located outside of

Pakistan.

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.

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Pakistan Telecom A

uthorityCLASSIFICATION OF TIP

Telecommunication Infrastructure Provider (TIP)

The TIP license authorized the licensee to establish and maintain the following infrastructure facilities in Pakistan to lease, rent out or sell end to end links to telecom operators licensed by PTA on mutually agreed terms strictly keeping in view their license; Earth Station & Satellite Hub; Optic fiber cables; Radio communications links; Submarine cable landing station within fifteen miles of costal area

of Pakistan subject to approval by the Authority & clearance of Ministry of Defense and Ministry of Interior;

Towers, poles, ducts and pits used in conjunction with other infrastructure facilities; and

Such other telecommunication infrastructure as the Authority may, by Regulation, require.

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Pakistan Telecom A

uthorityFLL, LDI AND TIP/TTP LICENSES

Criteria Incorporation with SECP Technical Qualifications Technical Experience Business Plan Financial Resources Technical Plan Undertakings etc

91

Pakistan Telecom A

uthorityFLL, LDI AND TIP/TTP LICENSESFee Processing Fee

FLL US$ 500/- (for each TR) LDI US$ 500/- TIP US$ 500/- TTP Rs. 5,000/- (for National) TTP Rs. 500/- (for Provincial)

Initial License Fee FLL US$ 10,000/- (for each TR) LDI US$ 500,000/- (excluding US$ 10 million SBLC) TIP US$ 100,000/- TTP Rs. 100,000/- (for National) TTP Rs. 40,000/- (for Provincial) and Rs. 10,000 for Baluchistan

Annual Regulatory Fee: 0.5% of Gross Revenue

Duration 20 Years

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FLL, LDI AND TIP/TTP LICENSES –FEE & TERM

S. No.License

TypeAPF ILF

Term of License

ARF

1 FLL US$ 500 US$ 10,000

20 Years0.5% of Gross

Revenue

2 LDI US$ 500US$ 500,000

(excluding US$ 10 million SBLC)

3 TIP US$ 500 US$ 100,000

4TTP

(National)Rs. 5,000 Rs. 100,000

5TTP

(Provincial)

Rs. 500Rs. 40,000

(Rs. 10,000 for Baluchistan)

Pakistan Telecom A

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Pakistan Telecom A

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Region/Territory FLL

14 TR in Pakistan (separate license for each TR) 3 TR in AJ&K and GB (separate license for each TR)

LDI Pakistan AJ&K and GB

TIP Pakistan AJ&K and GB

TTP Pakistan

National Provincial

AJ&K and GB

 Rollout Commencement of the licensed services within one year.

FLL, LDI AND TIP/TTP LICENSES

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Pakistan Telecom A

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Rollout FLL

18 months from effective date LDI

Pakistan 12 months from effective date 5 TR 24 months from effective date 10 TR 36 months from effective date 14 TR

AJ&K and GB 12 months from effective date 1 TR 24 months from effective date 2 TR 36 months from effective date 3 TR

TIP Not defined in the license

TTP Not defined in the license

FLL, LDI AND TIP/TTP LICENSES

FIBER DEPLOYMENT 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

International ConnectivitySubmarine and Terrestrial Cables

SEA-ME-WE 3 SEA-ME-WE 4

TW1 I-ME-WE

Pakistan International Hub for the cables

Regional Hub for transit traffic

State of the art Metro, NGN Core Network

Present Capacity of 100 Gbps for International connectivity

97

FLL, LDI, TIP AND TTP LICENSES ISSUED FOR PAKISTAN

Series1

0

10

20

30

40

50

6060

15

8 8

FLLLDITIPTTP

Pakistan Telecom A

uthority

98

Pakistan Telecom A

uthority

Series1

0

1

2

3

4

5

6

7

87

8

0 0

FLLLDITIPTTP

FLL, LDI, TIP AND TTP LICENSES ISSUED FOR AJ&K AND GB

99

Pakistan Telecom A

uthority

COMPLIANCE AND ENFORCEMENT

Commencement Fees National Security Quality of Service

100

Pakistan Telecom A

uthorityTECHNOLOGY AND SERVICE NEUTRAL Technology

Spectrum System Regulation

Service Mobile Fixed Class

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Pakistan Telecom A

uthority

CONTT.. Technological Neutrality

A licensee retains the ability to choose the technology and equipment to be used to provide the licensed service. The spirit is to have the best not to turn Pakistan a damping place

Service Neutrality

Allows licensee to take signals from the market as to which services are most in demand or most cost-effective like VoIP services.

Licensees have to interconnect with networks outside their areas so that their customers could make national and international calls.

102

Pakistan Telecom A

uthorityTECHNOLOGY AND SERVICE NEUTRALITY

PTA promotes efficient use of spectrum by technology neutral regime.

Licenses issued under Deregulation Policy and Cellular Mobile Policy are technology neutral.

WLL operators were allowed to deploy CDMA and WiMAX for provision of broadband services in 1.9 and 3.5 GHz remaining within the ambit of their license.

CMTO (Warid) was given permission for launch of LTE within their assigned 1800 MHz spectrum after fulfillment of relevant regulatory provisions.

103

Pakistan Telecom A

uthorityTECHNOLOGY NEUTRALITY

•The Mobile licenses issued are technology neutral

•Operators are encouraged to deploy the best available technology remaining within the ambit of scope of license and meeting the required QoS obligations

104

Pakistan Telecom A

uthorityTECHNOLOGY NEUTRALITY

•The LL licenses issued are technology neutral

•Operators are encouraged to deploy the best available technology remaining within the ambit of scope of license and meeting the required QoS obligations

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Pakistan Telecom A

uthority

GREAT SAYING

“It is better to have enough ideas for some of them to be wrong, than to be always right by having no ideas at all”

EDWARD DE BONO

Pakistan Telecom A

uthority

106

Staying connected with the latest trends is one of the secrets of success.

107

Pakistan Telecom A

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108

Pakistan Telecom A

uthority

THANKS