Search This Blog

Wednesday, February 13, 2008

ACHIEVEMENTS OF TELECOM SECTOR DURING 2004-2007

ACHIEVEMENTS OF TELECOM SECTOR DURING 2004-07

Telecommunications is one of the rapidly growing sectors in the country and by realizing the importance of information and communication technologies the Ministry of IT and Telecom is actively engaged in development of telecom sector in Pakistan through liberal, competitive and consumer focused policies of telecom sector.

Implementation of Cabinet Approved Policies:

The Federal Cabinet approved the following three policies (formulated by Ministry of IT) for the telecom sector:

  1. Fixed Line Telecom Deregulation Policy July 2003 
  2. Mobile Cellular Policy January 2004 
  3. Broadband Policy December 2004 

Implementation of Fixed Line Policy and its Impact:

The fixed line sector deregulation policy was prepared with the key objectives of improving infrastructure development, increasing capital investments and to harness local entrepreneurship in the sector. It is focused to effectively increase quality and choice of affordable services for businesses and consumers in the telecom sector. Moreover, it is aimed to protect national security interests, extension of telecommunications services to un-served areas of country and to promote fair competition amongst telecom licensees.

In view of the above, Ministry of Information Technology is actively facilitating telecom operators to roll out and start businesses in befitting manner. For this purpose, Government of Pakistan has granted 14 Long Distance International (LDI) and about 38 Local Loop (LL) licenses. Out of these, eight LDIs have started their operations during the preceding years and have established more than 94 gateways across the country. LDIs have increased their Point of Presence (PoP) to 179 through out the length and breadth of the country. Similarly 10 out of 38 LL companies have become operational while others are actively planning their rollout endeavors. Due to these supportive measures, more and more operators are rolling out telecom networks in the country and such measures are being witnessed to produce very encouraging results from operators in terms of increased network accessibility, coverage and quality of service. On the consumer side, these have resulted in lowered call rates, increased service alternatives and improved customer support.

Wireless local loop (WLL) services were introduced in Pakistan in 2004. For this purpose government has issued 16 WLL licenses, out of which 5 WLL companies are fully operational by now. There has been a considerable growth over the last two years and currently WLL subscribers in Pakistan have crossed to over 1.76 million subscriber base.

Implementation of Mobile cellular Policy and its Impact:

Wireless communications is another vital part of telecom sector and due to liberal government policies this sector is experiencing enormous growth in the country.

The number of Cellular Mobile has increased over 63.15 million users at the end of July, 2007 as compared to 36.77 million in July, 2006. Net increase in Mobile Cellular subscribers during 2004-2005 has been around 7.96 million, about 20 million during 2005-06 and approximately 26.38 million during 2006-07. Since, the total cellular subscribers have crossed the figure of 63.15 million in the country it is forecasted that by December 2007 the total number of cellular subscribers would cross 78.4 million users bringing the total cellular penetration of 49.2% in the country.

Some key initiatives in wireless sector over last few years are:

i. Mobile Theft Deterrent Initiative:
During the last few years, the Mobile Handset theft has been on rise including cases of snatching and stealing of handset. This has been an area of concern for government and general public. To safeguard the interests of mobile users, PTA endeavored to control the situation through industry cooperation and with the help of City Police Liaison Committee (CPLC). Consequently, IMEI/EIR facility has been successfully launched w.e.f 30th September 2006 across the country. Till now, this system is extensively utilized in blockage of stolen handsets and has proved significantly useful deterrent of mobile snatching.

ii. Mobile Number Portability (MNP):

Mobile Number Portability (MNP) is the ability of a mobile subscriber to retain his/her number when changing network operators within a country. Mobile Number portability is a key aspect of deregulation policy to ensure fair competition in the telecom industry.

The absence of MNP may give the existing cellular mobile operators a significant competitive advantage over new entrants in the market. Realizing the importance of MNP to improve competition among cellular operators, Mobile Number Portability service has been launched in the country with effect from April 2007. This is an important mechanism from the government to enhance fair competition among different cellular mobile operators to ensure improved customer service quality and to provide freedom in selection of their cellular service.

iii. Mobile Banking:

With collaboration with State Bank of Pakistan, telecom industry and Ministry of IT is actively involved in devising ways to introduce mobile banking in Pakistan. Currently the Ministry is actively involved in chalking out details of such facilities for general public in order to provide them a secure, robust and convenient banking mechanism. Ministry of IT is engaged in envisioning the policies and regulations required for such services.

iv. Policy Guidelines for Mitigating Environmental and Health Related Effects of the Cellular Base Station Antennas.

The Ministry of Information Technology on 2nd April 2007 issued a policy to the PTA for establishing national guidelines for mitigating environmental and health related effects of the Cellular Base Station Antennas. This would address public concerns about radiation hazards of the radio infrastructure. In this regard a detailed research study has been conducted by the IT Ministry to take stock of the situation. Radiation hazards from the base stations were thoroughly analyzed in light of international research and recommendations of standards bodies (ANSI/IEEE and the International Council for Non Ionizing Radiation Protection (ICNIRP). The study report was also circulated to the Ministries of Health, Environment, Pakistan Telecommunication Authority (PTA) and the industry stakeholders for comments and recommendations.

In view of the study and extensive consultation MoIT has decided that Pakistan also needs to adopt a precautionary approach in light of non-conclusiveness of international research and put in place safeguards against any remote chances of health hazards due to cellular antennas. For this purpose, policy measures and guidelines are devised based on international best practices and PTA is responsible to take all necessary actions as relevant to the policy measures and guidelines. PTA would also launch public awareness campaign so that policy guidelines are implemented in true spirit and concerns of the general public and local/provincial authorities are addressed in a satisfactory manner.

v. Policy Guidelines for Mobile Virtual Network Operators (MVNOs).
The Cabinet approved Cellular Mobile Policy authorized PTA to prepare a detailed framework under which the Mobile Network Operators (referred to as MNOs), would be permitted to have commercial arrangements with other companies to act as Mobile Virtual Network Operators (MVNOs). Accordingly, PTA had to come up with the governing framework, within MNO rights and obligations, for operation of services by MVNOs within two years of the issuance of the Policy. In this regard, public consultation for the subject framework, based on two models, was floated by PTA embodying the recommendation for adoption of a simple reseller/distributor type of model. After going through the consultative process, Ministry of IT has requested PTA to observe policy guidelines entailing that any framework for MVNO should inter-alia also include MNO rights, obligations and general principles. PTA’s suggested framework for MVNOs is to be improved in the light of ministry guidelines in order to close the consultative process. Currently MOIT is in the final stages of devising the MVNO regime and finalizing the directives for announcement, introduction and implementation of these policy guidelines.

Implementation of Broadband Policy and its Impact:

Another important policy is the Broadband Policy for Pakistan, which was formulated and approved in Dec.2004 by the Government of Pakistan, after a consultative process involving all stakeholders in the sector. The focus of this policy is to support the proliferation of IT and IT enabled services in the country. The Ministry of Information Technology is facilitating penetration of Broadband/ICT services throughout country though active measures. Rates of international bandwidth have been reduced tremendously and currently international bandwidth is available at a price of around US $ 1,000 per E-1 to facilitate the broadband service users. MoIT, PTA and Industry Stakeholders have worked jointly to come up with a comprehensive licensing framework of broadband service providers. License templates have been finalized and announced for the public. The new regime has facilitated the operators. Simplified procedures and harmonization of the licensing framework concerning new ISPs/DNOPs have contributed in the proliferation of broadband service in Pakistan.

As of June 2007, there are 35,000 DSL subscribers, over 40,000 cable subscribers and over 30,000 on broadband wireless (EVDO) in the country and total broadband subscribers are expected to be around 125,000 by the end of 2007. Through these initiatives of the Ministry of IT, broadband is currently available @ Pak. Rs.999 per month in major cities of country. This has resulted with activities of key broadband operators, service providers and O&M contractors to quickly capture the most market share of this highly attractive market. On the other hand, such initiatives of Ministry of Information Technology are beneficial for compliance with the directives of WSIS declaration plan of Geneva for furthering spread of ICT service in the country.

In short, this enormous growth in telecom sector amply speaks about the success of the Telecom Deregulation, Cellular Mobile and Broadband policies in Pakistan. It clearly demonstrates the successful implementation of government policies for telecom sector and this sector is now perceived to be the most dynamic and vibrant sector of Pakistan. The success of these policies can be gauged from enthusiastic interest shown by the new business entrants, increased activities in the sector and the improved telecom penetration levels that were around 35.4% by the end of Dec 2006 (combined fixed and mobile Teledensity). At the end of July 2007, total teledensity in the country has crossed 45.04% and further increase in this sector is envisioned.

Privatization of PTCL:

The fixed line monopoly held by the state-owned Pakistan Telecommunication Company Limited (PTCL) on local, long distance and international services was terminated from 2003 (Deregulation Policy for the Telecommunications Sector, 13 July 2003, Pakistan Telecommunication Rules, 2000). Policy aims are to liberalize the sector by encouraging “fair” competition and maintaining an effective internationally best practice regulatory regime. PTCL, originally 88% state owned, has a further 26% equity divested to an overseas company Etisalat International in July 2005, thereby reducing state equity to 62%.

Sale deed of 26% shares of PTCL amounts to US $ 2.59 Billion. The management control has been handed over to Etisalat International Pakistan (EIP) in April 2006 and the company is operating independently under its new regime.

Settlement of GHQ concerns on the Privatization of PTCL:

With the privatization of PTCL, the concerns raised by various stakeholders such as NTC, PTCL, GHQ, Armed Forces are resolved. Moreover pending issues of the tariff agreement between GHQ and PTCL was taken and amicably settled in the form of Tariff Agreement between both the entities for the Transaction period. In addition to these, the issue of CPP was resolved through active facilitation from Ministry of IT. The receivables by GHQ of the four cellular mobile operators and PTCL were settled down and an amount of Rs.600 Million was disbursed to close an issue prevailing for more than three years was closed.

Inter-ministerial Technical Committee on Convergence and Joint Mechanism for Licensing:

Pursuant to the directive of Prime Minister’s Secretariat, Ministry of Information Technology constituted an Inter-Ministerial Technical Committee on Convergence and Joint Mechanism for Licensing and various meetings were held at MoIT to resolve the issue of MMDS license and convergence of the Regulatory Bodies. Inter-ministerial Committee has resolved the MMDS license issues and finalized the frequency allocation plan for broadcast and telecom sector and is further deliberating on the convergence of Regulatory Bodies. After completion of the deliberations, the Committee has compiled an extensive report for the future roadmap of the convergence policies in the country which would be presented to competent forum.

Operational Arrangements of USF and R&D Funds:

To serve the underserved areas of country and to promote research and development activities Ministry of IT envisioned Universal Service Fund (USF) and National ICT Research and Development funds through contributions from telecom operators. Carriers (including mobile operators) pay PTA an annual fee not exceeding 1.5% of the previous year’s gross revenue less inter-operator and related PTA payments, to the Universal Service Fund and pay 1% (0.5% for mobile operators) to the Research and Development Fund. The Universal Service Fund (USF) and National ICT R&D Fund (RDF) are controlled by the Ministry of Information Technology (Pakistan Telecommunication (Amendment) Ordinance, August 2005, Universal Service Fund Policy, 2005, and Research and Development Fund Rules, September 2006).

i. Establishment of ICT RDF Company:

ICT RDF was created in November 2006 as private company through contributions from fixed line and mobile operators in the country. The board of governors of the company is comprised of representatives of telecom companies to ensure transparency and effective utilization of funds. The RDF, funded mainly by prescribed licensee contributions, finances prescribed research and development in priority areas of information and communications technology e.g., market and product development (The Research and Development Fund Rules, 2006).

This fund will cater for HR requirements of the telecom sector. For this purpose a comprehensive Outreach Scholarship Program (OSP) is devised by the company.

Following results were achieved from OSP 2006:

Description
Planned
Actual
Number of participating students
     2,000
     3,050
Number of candidates expected (10% drop out)
     1,800
     2,565
Number of candidates appearing
     1,700
     2,365
Number of trained teachers
        150
        182
Number of participant principals
-
          51
Number of total beneficiaries
     2,200
     4,183
Number of participating schools
          50
          70
Number of Zones
            9
          14
Testing centers
            2
          15
Male/Female candidates    
      75:25
       72:28


The feedback indicates that the performance of students of OSP has been better than the regular intake of the university. For 2007-08, the National ICT R&D Fund will execute the program through National University of Computer & Emerging Sciences (NU-FAST), Ghulam Ishaq Khan Institute (GIKI), Lahore University of Management Sciences (LUMS) and National University of Science and Technology (NUST). In subsequent years, given the incremental number of scholarships i.e. 1000 in 5 years, other universities, preferably public sector engineering, science & technology universities will also be included in this program through ICT Centric University Excellence Program under National ICT R&D Fund Company.

ii. Establishment of USF Company:

USF was created in December 2006 as private company through contributions from fixed line and mobile operators in the country. The board of governors of the company is comprised of representatives of telecom companies to ensure transparency and effective utilization of funds.

The USF is used solely to provide access to telecommunications services in remote and un-served (or under-served) rural areas; it is to be funded mainly by prescribed licensee contributions. USF goals are to be achieve by 2010 that is to provide access of 85% (95% by 2015) of the population to desired services, bring total rural teledensity of 5%, and to establish at least one telecentre for every 10,000 people (Universal Service Fund Policy, 2006). Provision of USF services is to be auctioned among licensed operators according to the lowest subsidy bid, and will be allowed to earn a “reasonable” return. USFC has prioritized lots for auction and pilot lot auction is expected next month.

Establishment of De-regulation Facilitation Unit:

The “De-Regulation Facilitation Unit (DFU)” was created on 1st July 2004 to assist the Ministry of IT in driving the process of expeditious implementation of de-regulation in the telecom sector.

The primary aim of establishing DFU was to undertake the task of analyzing progress of the de-regulation process, facilitating investors and ensuring that the de-regulation implementation time-table is being followed by the concerned agencies. The unit aims to identify the bottlenecks in the implementation of the de-regulation policy and bring the same to the attention of the relevant authorities so that these could be examined and addressed. The Unit was also expected to create a repository of information and provide access to professional services for investor facilitation. Other key activities were required to be undertaken by the de-regulation facilitation unit were to present progress in the matter relating to de-regulation and identify the need / arrange to undertake any consultancy works by domestic and international consultants on issues that emerge from the progress of de-regulation.

Achievements:

  • Coordinated with PTCL, PTA and FAB vis-à-vis general and specific tasks to be undertaken by these entities along with timelines (where applicable) for implementation of de-regulation policy.
  • Facilitated operators in seeking the “Right of Way” (RoW) needed by new operators to construct their networks
  • Major involvement in the Preparation of   rules  and operating framework for Research and Development Fund
  • Involved in the Establishment of Universal Service Fund (“USF”).  
  • Engagement in the preparation of  framework of obligations on licensees for opening ducts, poles or other such facilities to competitors when they enjoy Significant Market Power.
  • Prepared the Cabinet Summaries detailing license documents, process etc pursuant to Cabinet decision on de-regulation policy
  • Prepared the roadmap for the broadband uplift in the country.
  • Supervised the ICT related research and development projects within the academia of country
  • Monitored and updated the telecom stats of the country
  • Monitored and evaluated the content of websites in view of national security.
  • Prepared various Summaries for the approval of Cabinet, ECC and CCoP
  • Contributed in reducing activation tax on mobile cellular services
  • Prepared recommendation for awarding grace period to WLL and Mobile Cellular operators
  • Periodic contribution in issues related to PTCL privatization including voluntary separation scheme
  • Significant contribution in launching and executing Outreach Scholarship Program for the talented students of non-metropolitan areas of the country
  • Provided input in creating a framework for introducing mobile commerce in Pakistan
  • Issuance of various policy directives for limited mobility, mobile theft etc

Establishment of International Coordination Unit:

To facilitate international coordination and liaison the Ministry has incorporated International Coordination Unit since April 2007. The unit is actively involved in coordination and liaison activities with international organizations like ITU, APT, CTO and many others. The goal of the unit is to ensure that Pakistan stays ahead in international collaboration in telecom sector while actively participating in international forums for ICT and Telecommunications matters.

MoIT represented the Government of Pakistan in all international forums like ITU, APT and CTO through active facilitation of its international coordination unit. Telecom Wing actively participated and responded to various queries/studies required by these organizations. MoIT benefited itself and telecom sector including PTCL, PTA, NTC, SCO, FAB from various training opportunities offered by ITU, APT and CTO. These trainings would enhance the HR profiles, experience available in telecom sector within the country. Telecom Wing represented GOP point of view in various international forums like ITU Council 2005 and 2006, various APT meetings and have actively contributed in ITU events like WSIS, World Telecom Development Conferences. One of the Pakistan proposals on disaster relief assistance was given a global status in World Telecommunication Conference in Doha in 2006. Pakistan also contested for ITU Council and Radio Regulation Board seats during ITU Plenipotentiary Conference in November 2006 and through active efforts of Ministry of IT, it is now an active member of these esteemed forums.

Reconstitution of Frequency Allocation Board (FAB):

Frequency Allocation Board has exclusive authority to allocate and assign portions of radio spectrum to the Government organizations, telecommunication services, electronic media and other users in Pakistan. In this regard, government has reconstituted the board and has assigned it with responsibilities of spectrum reframing, new spectrum allocation and spectrum allocation in the country.

After the successful implementation of two new cellular licenses and spectrum reframing to allow an efficient dual band spectrum allocation to all GSM operators of Pakistan for efficient use of frequencies, FAB has been entrusted the task of facilitating existing licenses in clearing interference issues arising out of the legacy spectrum owners and licenses operating public switched mobile and wireless networks.

In addition, looking forward in the future FAB has been given the task to reframe and clear spectrum for a host of services envisioned for 3G and 4G era. Government of Pakistan is cognizant of the fact that for developing economies like that of Pakistan the way forward is to open up new lucrative spectrum bands to all wireless broadband access in the local loop.

International Recognition of Pakistan’s ICT Initiatives:

i. GSMA Award for Best Policies of the Government:

Global System Mobile Association has awarded Pakistan the prestigious award of best government policies to government of Pakistan in year 2005 for its very efficient policies and transparent implementation which not only fetched huge amount of FDI but also earned international investors’ confidence.

ii. ITU Asia Pacific Center of Excellence:

(PTA node for Policy and Regulations)
In the first stakeholders meeting of the International Telecommunications Union Asian-Pacific Region Center of Excellence (ITU ASP CoE) in Bangkok, Thailand on the 19th to 20th October 2006, Pakistan was selected and given the mandate to become the CoE node in the Asia Pacific Region for Policy & Regulations. Accordingly Ministry of Information Technology, MoIT (IT&T Division) assigned the task to PTA for the establishment of ITU Regional Center of Excellence (CoE) Node in Pakistan.

Therefore, the Node for Policy and Regulations was established in Pakistan in 2007. This will offer various training courses each year in collaboration with ITU on issues related to Telecom Policy & Regulations. These courses will be attended by the countries from the Asia & the Pacific Region.

This platform will provide an opportunity to the countries of Asia Pacific Region to share expertise on highly specialized issues related to telecommunication. 49 ITU Member countries from the Asia & the Pacific region will be benefited from the programs offered through these CoE Nodes.

Special Communications Organization:

1. Achievements

  1. Subscribers Based Capacity increased from 102,092 lines to 360,473 lines in AJ&K and Northern Areas. 
  2. Working Connections increased from 80,770 lines to 248,473 lines in AJ&K and Northern Areas. 
  3. Combined Tele-Density Increased from 1.96 to 5.48 in AJ&K and from 1.53 to 4.98 in Northern Areas. 
  4. SCO Launched GSM Services (SCOM) in AJ&K and Northern Areas. 
  5. SCO Launched WLL Services (SCO CDMA) in AJ&K. 
  6. SCO Launched Broadband Internet Services (Snet) in AJ&K. 
  7. SCO International Gateway Exchange and Satellite Earth Station projects completed. 
  8. Enhancement of Reliable Backhaul Media by Laying of 1600 Km OFC Network (From Mansehra – Gilgit, Gilgit – Skardu/Youching, and between Inter Transit & Main Exchanges of AJ&K of NAs). 
Revenues of SCO (in Million Rupees):
2004-05
2005-06
2006-07
1545.157
1373.094
1619.436

2 Growth of Telecommunication Infrastructure.


S/No
Detail
August 2006
August 2007


AJ&K
NAs
Total
AJ&K
NAs
Total
a.
Exchanges
128
67
195
122
68
190
b.
Installed Capacity (Fixed)
117,171
26,897
144,068
143,722
35,001
178,723
c.
Installed Capacity (Mobile)
55,000
-
55,000
85,000
41,525
126,525
d.
Installed Capacity (WLL)
25,000
5,100
30,100
50,000
5,128
55,128

Total
197,299
31,997
229,168
278,722
81,654
360,376
e.
Working Connection (Fixed)
87,004
17,236
104,240
86,384
21,955
108,339
f.
Working Connection (Mobile)
53,000
-
53,000
84,125
27,297
111,422
g.
Working Connection (WLL)
7,056
2,945
10,001
26,000
2,712
28,712

Total
147,060
20,181
167,241
196,509
51,964
248,473
h.
Tele-Density
4.25
1.94
3.71
5.48
4.98
5.37


3. Major Projects

a. GSM Project for AJ&K and NAs.
GSM Project of 50,000 lines for AJ&K and NAs was approved by ECNEC on 18 February 2004 at cost of Rs.450 million. The Project was commissioned on 20 November 2005 in AJ&K. More than 70% area of AJK is under effective coverage of SCOM. Due to mounting public pressure, the existing capacity of SCOM network has been expanded up to 85,000 out of which 84,000 connections have already been sold. GSM system in Northern Areas was launched by SCO on 14 August 2006 in nine cities with limited capacity of 15,000 subscriber based however due to pressing demand of the people of the area expansion of the system is in progress.


b. Rural Telecommunication Uplift Project for AJ&K Phase-I.
The originally project was planned to provide 80,000 lines with microwave and OFC Media at a cost of Rs 1486 Million and approved by ECNEC on 11 August 2003. The revised Pc-I for 114,000 lines at a cost of Rs 1706 Million has been prepared and forward to MoIT for further process. Summary of the project is as under:-

                                                     Planned  Completed

(1)     Total Number of Lines       -     114000    107,500
(2)     Digital Exchanges             -     62            44
(3)     Microwave Stations           -     44            27
(4)     Laying of Optical Fiber Cable-   266 Km    completed


c. Expansion and Improvement of Telecommunication Facilities in NAs Phase-II.
The project was planned to provide 18,000 lines with MW and satellite media at a cost of Rs 668.996 million for NAs. The project was approved on 27 July 2004. Summary of the project is as under:-

                                                          Planned      Completed
(1)     Digital Exchanges                       -  26            26
(2)     Digital lines                               -  18,000      18,000
(3)     VSAT Station multi channels        -  35            28
(4)     Microwave Stations -  10   in Progress

d. Interconnect Billing and Customer Support System.

SCO’s interface with the new operators requires a state of the art interconnect billing system, to comprehensively monitor and record the traffic. The project at a cost of Rs 580 Million was approved on 14 December 2005. It aims at expansion of existing and installation of new Billing and Customer Support System for NAs and AJ&K. Contract has been signed with vendor and project is likely to be completed with in 15 months time period.

e. Laying of OFC between Mansehra to Gilgit.

To improve backhaul for NAs, the project for laying of 450 Km OFC with STM-16 connectivity was started from Mansehra to Gilgit in 2004. By September 2005, 438 Km OFC had been laid along Mansehra - Balakot-Kaghan - Naran - Jalkhad - Gittidas - Batoga – Chilas - Jaglot - Gilgit. However, due to devastating earthquake of 2005, about 85 Km OFC was damaged between Mansehra- Kaghan- Naran . Re-laying of OFC is not likely till realignment / reconstruction of road infrastructure. To bridge the gap and make OFC link operational, a Microwave link between Thandiani – Naran has been established.

f. OFC Project in AJ&K.

To meet the continuously increasing demand of PSTN, Cellular and WLL services, project for laying of 266 Km OFC through FWO was initiated in Dec 2004 which has successfully been completed. In order to link all Districts and Tehsil HQs level exchanges with the transit and main exchanges laying of 570 Km OFC was started in Dec 2006, out of which about 450 Km OFC has been laid. Project will be completed by end of June 2008.

g. Northern Areas Terrestrial Microwave Link.

The project of terrestrial microwave link - NAs was planned at a cost of Rs 490 M. It will extend the terrestrial backbone from Gilgit to Rawalpindi, thereby providing redundancy to Mansehra - Gilgit Optical Transmission System. Contract for Terrestrial MW Link was signed on 29 May 2007 with M/s Nera and is likely to be completed by June 2008.

h. Cross – Border Cable System Between Pakistan and China.

President of Pakistan during his visit to china in February 2006 showed keen interest to the KKH up gradation project. President proposed that work on the projects on construction of Railway Line, Gas Pipe Line and Fiber Optic Cable should be started simultaneously with the KKH up gradation. A Memorandum of Understanding (MoU) for construction of Cross – Border Cable System between Pakistan and China has been signed during recent visit of the Prime Minister of Pakistan to China on 17 April 2007. China Telecom Corporation and SCO will form a working group to coordinate technical details.

National Telecommunication Corporation

NTC was established to provide basic Telephony and Data services to Govt./Semi Government organizations including Defence Forces. The achievements of the Corporation in the last three years are mentioned below: -

S.No. 
Description
2004-05
2005-06
2006-07
 1
Total Working Connections
81,299
93,220
100,229
 2
Total capacity of telephone Lines
91,303
112,304
121,351
 3
Telephone Exchange Installation
76
97
108

MAJOR PROJECTS

  1. Deployed Next Generation Network (NGN), in major Cities of Pakistan. 
  2. Deployed 32x latest technology based exchanges throughout Pakistan. 
  3. WLL services has been started in major cities of Pakistan. 
  4. Deployed Optical Fiber Access Network (OFAN) network at Islamabad, Karachi and Gawadar. 
  5. Deployed International/NWD Booking System in order to extend call booking facility to NTC designated subscribers. 
  6. Deployed Video Conferencing System to extend video conferencing facility to NTC designated subscribers. 
  7. Web-hosting for Government of Pakistan (GoP). 
  8. Up-Gradation of Junction Network from STM-4 to STM-16 at Islamabad. 

2004-05
2005-06
2006-07
2376
2050
21551

1. Draft amount for FY 2006-07

Snapshot of Telecom Sector indicators for Last 3 Years

i. GST/CED Collection from Telecom Sector (Rs. in billion)2

i. GST/CED Collection from Telecom Sector (Rs. in billion)2


2004-05
2005-06
2006-07
Mobile
9.9
18.8
27.3
Basic Telephony*
9.7
7.7
7.6
Others**
0.9
0.3
0.21
Total
20.5
26.8
35.121

ii. Comparison of FDI in Telecom Sector with Total FDI in Country2

Years
Total FDI
FDI in Telecom Sector
Contribution in
Total FDI (%)
2004-05
1524
494.4
32.44
2005-06
3521
1905.1
54.11
2006-07
5848.6
2228.1
38.091

iii. Growth in Cellular Subscriber Base2






Cellular Subscribers

2004-05
2005-06
2006-07
12771203
34506557
63159857

iv. Total Telecom Teledensity2



Combined Teledensity


2005
2006
20071
Cellular
8.30%
22.21%
40.64%
Fixed Line
3.60%
4.05%
4.40%
Total
11.90%
26.26%
45.04%



1.            Figures for last quarter of FY 2006-07 are based on industry estimates.
2.            Source: PTA