Licensing in Pakistan
Pakistan Telecommunication Authority
July 2015
Presentation outline
1. History
2. Pre-Deregulation
3. Deregulation of telecom sector in Pakistan
4. Post Deregulation
5. Present Licensing Framework
6. Future Plans –The New Telecom Policy 2015
Pakistan : An Overview
Pakistan
Population, mil
196 (6th Largest Population)
Land Area 796,095 km2
• 36th Largest Area
Key Stats
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▪
▪
▪
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Income /Capita US $1307
Literacy Rate 53%
Media Age 21.2
Geo-strategic Location
Population and workforce
• Pakistan has the 6th largest population
in the world, making it an attractive
market for global investors
• The country is expected to have more
than 230 mln inhabitants by 2030 with
~2% per anum growth
• Its population is young and becoming
more educated
• Urbanization trend is expected to
continue, reaching a level of 43% by
2030
• It is expected that by 2050, Pakistan will
be the 31st largest economy in world
with nominal GDP of 675 bln USD from
its current state of ~240 bln USD (43rd
largest economy as of 2013)
SOURCE: Team analysis-Wikipedia
3
History of Telecom in Pakistan
Privatization and De-Regulation-1990
• 1st Step- From PT&T to PTC with separate legal
identity on 5th Dec 1990.
• Next 5 Years- Telephone lines increased to
2,127,344.
• Improved network comprising of Earth stations,
Submarine Cables, International Gateway,
Terrestrial System etc.
1996
Sector Growth
1990
1962
1947
Telecom Re-Organization Act
1996
• PTA ,FAB,PTCL,NTC
• Installed lines increased to
35,19,877 in 1998
First Step towards Sector Reform- 1962
• Separation of Postal and Tele departments
• Pakistan Telephone & Telegraph (PT&T)
formed
• Centralized Structure- Result Inefficient
• Number of Telephone Lines- 922,000 only until
1990
Before Independence- Indian Post & Telegraph
Department
Post independence 1947-1962
• Pakistan Post and telegraph department
• 15200 telephone connection in 1948
• All services manual
• Operated under Gov of India Telegraph Act
4
Telecom Sector – Reorganization 1996
Pakistan
Pakistan Telecommunication
Company Limited
Frequency Allocation Board
Pakistan
Telecommunication
Authority
National Telecommunication
Corporation
Pakistan Telecommunication
Employees Trust
5
Pakistan Telecom Authority
VISION
Create a fair regulatory regime
to promote investment, encourage
competition, protect consumer
Functions
Interest and ensure high
quality ICT services.
Recommend Government on Policy Formulation
Regulate Telecom System
Create Fair Competition
Promote Modernization
Receive / Dispose Radio Spectrum Applications
6
Frequency Allocation Board
Functions
Assignment of Spectrum as Per ITU Recommend
Spectrum Monitoring
Liaison with International Regulatory Bodies
Resolution of Spill over and Interference Issues
Spectrum Planning
7
History of Cellular Industry in Pakistan
• CMPAK “ZONG” Acquire
Paktel and start offering
Cellular Services
2014
• 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.
2007
• UFONE Started its
Operations as 2nd
GSM Operator
2004
Sector Growth
1998
1992
1990
• 1st Spectrum Auction
• Telenor & Warid begin
operations in Pakistan
1st GSM Operator
Mobilink” Launched
Services
2 Cellular (AMPS) issued to
Paktel & Instaphone
SOURCE: PTA Data
8
Pre- Deregulation -2002
Basic Telephone Services (PTCL,NTC)
Subscribers 2.27 million
FixedLine Subscribers
2.27
Fixed Line Teledensity
2.1
3.0
1.85
2.5
1.91
2.6
2.18
1.99
2.98
3.1
3.3
2.0
2.8
2.4
Million
2.5
1.5
2.0
1.5
1.0
1.0
0.5
0.5
0.0
0.0
1996
1997
1998
1999
2000
2001
Percentage
3.5
Pre- Deregulation -2002
Mobile (Instaphone, Paktel, Mobilink, Ufone)
Subscribers 2.40 million
Key Policies for Telecom Sector
De-Regulation Policy 2003
•
•
•
•
•
•
•
•
Fixed line Policy.
Open and Technology Neutral
License Term - 20 Years
Local Loop (LL) – ILF US$ 10,000 /
region - 14 Regions
Wireless Local Loop Option
(Spectrum Auctioned)
Long Distance and International (LDI)
– ILF US$ 500,000
Deregulated incumbent operator
PTCL.
Introduced Access promotion
Contribution, Universal Service Fund
Regime.
Cellular Mobile Policy 2004
• Cellular Mobile Policy.
• Technology Neutral
• 2 New cellular Licenses were issued for
15 years.
• Open Auction.
• Promoted efficient use of Spectrum.
• Fair Competition amongst mobile and
fixed line operators
• Role-Out Obligations – 70% Tehsil HQs
within 4 years.
• US$ 15M Performance Bond.
• Existing Operators to Pay Same Amount
for Renewal.
• Promoted Infrastructure sharing, National
Roaming, Mobile Number Portability.
14 Telecom Regions in Pakistan
Results of the De-Regulation Policy 2003
LDI
LL (Fixed)
WLL
14
84/38
92/16
Total Telecom Revenue reached Rs
129.4 Billion
84 Licenses
38 companies
Results of the Cellular Mobile Policy 2004
•
Two new technology Neutral licenses
issued .
•Resulted in fierece Competetion in the
Sector.
•Tremendous growth•Negiligible mobile Subscribers of 2.4
million in 2002 has grown to
million in 2015.
131.8
Present Licensing Framework
a- Fixed Line Sector• Long Distance International (LDI)
• Local Loop (LL)
• Fixed Local Loop (FLL)
• Wireless Local Loop(WLL)
• Class Value Added Services (CVAS)
• Data CVAS
• Voice CVAS
• Telecom Infrastructure Provider(TIP)
b- Cellular Sector• Mobile Licenses
• Next Generation Mobile Services(NGMS) licenses.
c- Wireless (Radio Based Services) Sector• HF/VHF/UHF Permissions
• Aeronautical services
• Maritime Services
Present Licensing Framework- Fixed Line Sector
a- Long Distance & International (LDI)LDI service covers the provision of end to end communication between points that
are;
• located in different Regions,
• not in the same Local Calling Area, or
• located more than 25 Km apart and
• located in Pakistan with points that are located outside of Pakistan.
b- Fixed Local Loop(FLL)
FLL service covers the access to the Public Switched Network and allows users to
make and receive local, long distance and international real time voice telephone
calls. FLL with spectrum assignment are Wireless Local Loop (WLL).
c- Telecom Infrastructure Provider (TIP)
TIP license authorize the licensee to establish and maintain the infrastructure
facilities (Earth Stations, OFC, Radio Communication links,Towers,Poles etc.)in Pakistan
to lease, rent out or sell end to end links to telecom operators licensed by PTA. TIP
cannot operate the infrastructure.
d- Class Value Added Services (CVAS)
Provides VAS using infrastructure of LL,LDI and Cellular licenses. CVAS cannot install
its own infrastructure.
Present Licensing Framework- Cellular Sector
• Technology neutral Cellular licenses issued to 5 Operators.
• Cellular Licensee is allowed to provide:
– Cellular/NMGS services.
– Optional incidental Services .
• The License doest not authorizes the licensee to :
– Interconnection to a service provider outside Pakistan
– Direct access for customers through a NCP.
– Fixed Services
• National and International Traffic are routed through LDI
licenses.
• Issued for a initial duration of 15 years extendable as per
applicable policy.
FLL
Mobile
Operators
5
LDI
Operators
13
84
Licenses &
38
operators
WLL
93
licenses &
12
operators
PAKISTAN TELECOM SECTOR
Infrastructure &
Tower
Licenses
10
SPECTRUM ASSIGNMENT FOR MOBILE LICENSES FOR GSM-2G
Pakistan Telecom Authority
19
Cellular Sector Spectrum Assignments in 1800 MHz
Cellular Sector Spectrum Assignments in 2100 MHz
Telecom Indicators –Teledensity
Broadband Market Share by Technology
Cellular Subscribers growth
139.9
140
128.3
120.2
Million Subscribers
120
94.3
100
88.0
80
63.2
60
34.5
40
20
0
12.8
5.0
99.2
108.9
131.8
Cellular Market Share April 2015
Basic Telephony Subscribers (FLL + WLL)
3G AND 4G GROWTH
(As of June 2015)
Operator
3G Subscribers
3G Covered Cities
4G
Subscribers
4G Covered
Cities
CMPak
3.5 Million
35
63000
7
Mobilink
3.2 Million
34
-
-
Telenor
3.8 Million
71
-
-
Ufone
2.5 Million
27
-
-
Warid
-
-
80,000
7
Fiber Deployed Nation wide
3 Parallel LDI Operators in addition to
PTCL(10,400KM) covering all major cities of
Pakistan
Link Direct -5000 KM
Wateen
-5700 KM
Multinet - 5000 KM
Future Plans
Telecom Policy 2015
a- Policy under finalization with vision of:• Universally available, affordable and quality telecommunication services
•Open. Competitive and Well managed markets
•Used by all
•Benefit to economy and Society
b- Guiding Principles of Policy Directive:• Market Driven
•Appropriate Regulation
•Forward looking
•Accelerated Digitalization
•Universal Access
•Government Intervention Only When necessary
Future Plans
Telecom Policy 2015
c – Key areas of Focus:• Open Sky Policy for Fixed , Broadcast and Mobile Satellite Service
telecommunication services
•Spectrum Refarmng, Sharing and Trading
•Wifi Offloading
•Over the Top Services
•Voice over Internet protocol (VOIP)
•Review of licensing framework in light of best international practices and
emerging ICT services.
•In-house Cabling ,Right of Way
THANKS