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 EXHIBITION |
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| Telecom infrastructure of Pakistan |
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| TELECOM INFRASTRUCTURE OF PAKISTAN |
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The telecom infrastructure is 100% digital, and provides a robust backbone for providing mission-critical services, such as call centers, ISPs, software houses, voice and video conferences. The fiber optic infrastructure, initially laid during the early 1990s, now accounts for well over 85% of the backbone that supports international and national data exchange. More than 40 Pakistani cities are currently interconnected through fiber optic exchanges, and there are nearly 2950 digital exchanges. Tele-density is steadily increasing, and the Wireless Local Loop (WLL) sector is now open to private sector investment. Broadband licenses are open to ISPs since 2004. Pakistan offers the most competitive bandwidth charges in the whole Asia Pacific region. A dedicated E1 circuit is currently available at the cost of US$ 2000 only. Pakistan is using 1700 MB of bandwidth for Internet traffic, which is 2.42 times greater than the bandwidth used in 2005.
The following statistical indicators depict reliable and vibrant growth in Pakistan’s ICT infrastructure:
- A total of 12 LDI licenses have been awarded to various companies
- Cellular penetration has reached 15.5 million, achieving a growth rate of 156% in one year; it is expected to grow more than double next year
- Total lines installed are 5.5 million fixed and 17.3 million mobile subscribers. This has resulted in an enhanced tele-density of 13.7%, which is 3% more than India’s
- In 2004, the number of Internet subscribers in Pakistan was 2 million; this has now increased to nearly 10 million. Over 1900 cities and towns are currently connected to the Internet
- 132 ISP licenses have been awarded to ISPs, out of which 70 are operational, and a broadband policy has been announced for ISPs in Pakistan
- 279,320 wirelesses PCOs are earning a marginal profit in Pakistan
- 17 companies have been awarded WLL licenses. There are presently 267,363 WLL subscribers in Pakistan
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GSM AWARD - A TRUE RECOGNITION OF PAKISTAN'S TELECOM SECTOR |
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The country was awarded a prestigious Government Leadership Award-2006 for its tremendous achievements in mobile communications sector during the last three years.
The GSMA Award is a major honour for Pakistan and recognition of its progressive telecom policies and effective implementation of the deregulation process.
The award exists to recognize the exceptional work by governments globally in the field of mobile communications policy and this is only the second time when this award is being given to any country after Brazil by the GSM Association (GSMA) - a trade association, representing more than 680 mobile phone operators worldwide. Pakistan had already emerged as a success story in the telecom sector and registered an exponential growth owing to investment friendly policies and effective and transparent regulations by Pakistan Telecommunication Authority (PTA). |
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TELECOM SUB-SECTORS |
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The telecom sector can be divided into three major segments, click on each link to view details;
| i) Basic Telephony Services (LDI, LL & WLL) |
Historically the telecom access / teledensity (considered to be a measure of development of a country) has remained low in Pakistan. However in recent years this sector despite being under the monopoly of PTCL has seen double digit growth in new connections coupled with a turnaround time for installation of less than 72 hours. PTCL has been privatized now and Etisalat Telecom of UAE has acquired 26% stake in PTCL with management control. Under the deregulation policies, 105 new players have entered which will not only increase the service choice for customers at competitive rates but will also provide services in the under served areas. Segment wise breakdown of companies that have been issued licenses is given as under: |
Licenses Issued after Deregulation of Telecom Sector (November, 2006) |
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Wireless
Local Loop |
Local
Loop |
Long Distance
& International |
Cellular
Mobile |
Total |
| Number of Licenses |
103 |
70 |
14 |
02 |
189 |
| Number of Companies |
16 |
38 |
14 |
02 |
70 |
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| ii) Cellular Mobile Operations |
The cellular phone sector is one of the fastest growing sectors of the telecom industry which has recently been given the status of an industry by the Government. The number of cellular phone subscribers has increased to over 46 million by November, 2006.
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| iii) Payphones |
Despite other advanced services, conventional services like payphone and prepaid calling card are also gaining momentum in Pakistan. Payphone business has shown rapid growth in the last four years and is considered an important mean of providing the fixed line facility to general public and self employment source for the low income group. |
Total Number of Card Pay Phones in Pakistan (2000–March, 2006) |
| Year |
No. of Payphone Companies |
Number of Payphone PCO's |
| 2000-2001 |
64 |
66,968 |
| 2001-2002 |
99 |
97,751 |
| 2002-2003 |
164 |
1,27,910 |
| 2003-2004 |
281 |
1,84,920 |
| 2004-2005 |
372 |
2,79,320 |
| 2005-2006 |
403 |
3,53,194 |
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| iv) Telecom Manufacturing Sector |
At the time of independence Pakistan was dependent on imported telecom equipment. Government of Pakistan with joint ventures started manufacturing in 1950’s but it was not enough to cater for local market demand. In 1990s, foreign telecom equipment manufacturers setup their facilities under local joint ventures in Pakistan realizing the potential of the market and to meet huge unmet demand.
Today, Pakistan has a sizable equipment manufacturing base to meet the requirements of local telecom operators to some extent. Many foreign companies like Siemens, Alcatel, ZTE, Huawei, Nortel Networks, and Ericsson Pakistan (Pvt.) Ltd. have setup telecom manufacturing facility. Besides foreign companies, many local companies like Comcept, Telephone Industries of Pakistan (TIP), Carrier Telephone Industries (CTI), LT Engineering, and Frontier Cable Industries (Pvt.) Ltd. (FCI) are working in Pakistan. As the telecom market is expanding, investment in the sector will improve more and these major telecom manufactures will have to become competitive and come up with new, improved and innovative products to recapture their share in market.
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| (v) Value - Added Services |
| Besides the aforementioned services the Pakistan Telecom Authority has awarded a number of licenses in valued added services and some of them have already started operations. These are given as under: |
| Service |
Licenses issued |
| Audiotex Services (ATS) |
17 |
| Burglar Alarm System (BAS) |
2 |
| Card Pay Phone Services (CPPS) |
315 |
| Data Communication Network (DCNS) |
23 |
| Digital Radio Paging Services (DRPS) |
1 |
| Electronic Information Services (EIS) |
127 |
| E-Mail Services |
11 |
| Mobile Telephony |
6 |
| Non Voice Communication Network Services (NVCNS) |
31 |
| Stored and forward Fax Services (S&FFS) |
8 |
| Satellite Services |
13 |
| Special License (SL) |
4 |
| Basic Telephony (TEL) |
3 |
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Remarkable growth in Pakistan telecom sector has been witnessed in this year. New licensed companies have started rolling out their networks across the country. Prices of all telecom services have dropped down drastically and revenues of existing operators have improved significantly.
In Pakistan, massive growth has been registered in its telecom sector through fixed-line deregulation, and mobile cellular policies which have gone a long way in achieving their objectives in terms of infrastructure development, increase in investment and the range of quality and choice of services for customers, extension of telecom services to remote areas and encouragement of fair competition among operators. |
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| Sources: BOI - Board of Investment, PSEB - Pakistan Software Export Board, PTA - Pakistan Telecommunication Authority |
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