Knowledge Based Economy

Economic Solutions

Dr. Mohammed Yaseen, Chairman PTA

dryaseen.pk

Dr. Mohammed Yaseen, Chairman PTA

dryaseen.pk

Sequence of Presentation

The Present Market

Infrastructure to Knowledge based Economy

ICT and Convergence, integrated Economic solution

Sequence of Presentation

Implementation and Regulatory Challenges

Indicator 2005 2012 Cumulative

Growth %

(2005-2012)

Teledensity (%) 12 70.6 488

Cellular Mobile 8.3 118 1321

Telecom Indicators

Cellular Mobile Subscribers (millions)

8.3 118 1321

Broadband Subscribers (millions)

0.045 1.9 4122

95% Population Coverage

Telecom Indicator

Operator Name Optical Fiber Network (Km)

PTCL 10400

Wateen 5700

Link Direct 5000

Multinet 5000

LDI

International Connectivity

Tehseel Level OF

Coverage

Sea-Me-We 3

Sea-Me-We 4

TWA

I-ME-WE

International Connectivity

� Regional Hub for transit traffic

� State of the art Metro, NGN Core Network

� Present Capacity of 100 Gbps for International connectivity

Indicator 2005 2011

Telecom Revenues (Rs billion) 144 363

FDI in Telecom (million US$) 1905 79

Telecom Economic Indicators

Contribution to National Exchequer (Rs billion)

77 117

Telecom Investment (US $million) 1472 496

Knowledge Economy

Pillars

Pakistan (Jan 2012 Pakistan (Jul 2009) Pakistan (1995)

1.Economic Incentive

and Institutional 1.93 1.91 2.17

World Bank – Knowledge AssessmentPakistan is ranked at 117 position out of 144

and Institutional

Regime

1.93 1.91 2.17

2.Education 1.44 1.17 1.39

3.Innovation 2.84 2.88 2.81

4.ICT 3.60 3.39 4.59

Knowledge Economy

Index

(Average of 1,2,3,4)

2.45 2.34 2.74

Global Ranking

2010

Ranking

Overall

Score

2011

Ranking

Overall

Score

2012

Ranking

Overall

Score

87th 3.58 88th 3.54 102nd 3.39

Global IT Report – World Economic Forum

Global e-Government Report – United Nations

2008

Ranking

Overall

Score

2010

Ranking

Overall

Score

2012

Ranking

Overall

Score

131th 0.31 100th 0.247 156th 0.282

ICT Applications

& Content

Knowledge based Economy

� Every 10 points in Internet Penetration per 100 translates into 1.21 %

GDP growth (World Bank)

� New business and entrepreneurship opportunities

Social and Economical Impact of ICTs

7% of the total broadband benefits will be from SMEs

6% from improved government services

4 % from broadband-enabled education

16% from more attractive business environment

Socio Economic Impact – Turkey Case StudyBroadband enhancing policies would trigger a multiplier effect with the economy

Ease of access to loans

Math and science education

4.5

3.1GDP Contribution (Billion, USD)

0 5 10 15 20 25 30 35

Production sophistication

Venture capital availbility

Laws relating to ICT

Clustering

University/Industry collaboration

Buyer sophistication

SMB bunisess environment

Mortality rate

Internet access in schools

Government prioritozation of ICT

Time to start business

Presence of ICT in government

31.2

20.8

13.8

12.4

11.9

10.9

8.7

7.8

7

7.2

7.3

5.6

Impact of Telecom Services on Different

Aspects of Life

30

35

40

45

50

28.4

39.8

36.2

42.4

47.7

28.628.3

Very Much Somewhat No Change

0

5

10

15

20

25

Internet Mobile Internet Mobile Internet Mobile

20.3 19.7

4.2

10.912.3

9.8

14.9

12

19.2 19.1

6.2

Help in Knowledge /

Education

Improved Access to

Doctor / Health

Improvement in Business

Efficiency

Technology Convergence

•Cellular is merging towards the 4G/LTE.

•DWDM/Coherent and IP optical Network Natural choice for Access and

Transmission Network

•Core and access networks are evolving towards IP and NGN Platforms

Devices ConvergenceSmart Phone/Tablet

Tech Driven Industry Convergence & Consolidation

Billing SolutionManagement&

Resource Allocation

NGN

Capable to provide services by;

1 2 3

4 5 6

7 8 9

* 8 #

1 2 3

4 5 6

7 8 9

* 8 #

1 2 3

4 5 6

7 8 9

* 8 #

FTTN/FTTU

MPLS / IP CoreTransport Network

Soft Switch

3G

One CPE for Voice, Internet, Entertainment

One Operator

One Bill

Services Convergence

Technology

Market Driven Factors-High speed Integrated and Interactive services

-Triple play, Gaming, etc

-VOIP

Business Transformation & Consumer Interest•Single Subscription and Authentication

•Bundling of services;

-VOIP, IPTV, High Speed Internet

•Single point of customer service / Billing

Convergence

Regulatory

Bodies

IT + Tel + B. casting

License & Regulation

Technology & Devices

Services Integration

Voice + Data + Entertainment

Industry Acquisitions and Mergers

License & Regulation

Regulatory Issues and Challenges

TelecommunicationTelecommunication

� Ministry of IT

� Cabinet Division

BroadcastingBroadcasting

� Ministry of Information &

Broadcasting

Freq Allocation, Tower Installation, Freq related NOC

Consolidation of Regulations

• Split roles of PTA, PEMRA, MOIT& FAB causing loss of

government revenues

• Spectrum Revenue stagnant

• Spectrum Pricing and Rationalization• Spectrum Pricing and Rationalization

• Single window operation for the investors

National ICT Three Years Plan

Convert Pakistan into a Knowledge

based society and Economy

Knowledge based Economy Goals

GOALS TARGET DATE

Introduction of Mobile wireless Broadband 2012

Knowledge Based Pakistan•Internet 20% of population

•Integrated Broadband (Voice+ Video + data) 10 M

Subscribers

•70% Primary Schools with Internet

2012-13

E Pakistan•E-Government, E-Health, E-Agriculture, E-Commerce,

through Integrated Fed and Prov. Govt. Portal

2012-2013

Converged Regulatory Regime

Revenue•40-50 % Revenues increase through ICT Mobile

Broadband and Convergence

2012-2013

2012-2014

Potential Broad Band Market

ServiceMarket

Intelligent,

“IoT”

IoT : Internet of ThingsM2M : Machine-to-MachineLBS : Location-Based Service

KnowledgeKnowledgeKnowledgeKnowledge

Wisdom

Fundamental

change: Restricted

to Open

Service Specific,

geographical based

licensing was the right

choice.

1990 2000 2010

“M2M”

Intelligent,Personalized

ServiceOpen &

ConvergedService

“Context-aware”

Value-addedService

VoiceService

“IPTV”

2020

“Telecom 2.0”

“LBS”

“Telecom 1.0”

Data

Information

23

Present Market Status

0.0

20.0

40.0

60.0

80.0

100.0

120.0

2.4 5.012.8

33.9

63.2

88.094.3

99.2

108.9 Telecom limited to privileged

class until 2005

2 new Cellular licenses issued

in 2005 brought empowerment

to the have-not

Network Expansion, Fall in

Tariff, Healthy Competition

Cellular Subscribers

100% growth for last 3 years

Rated among Top-10

economies in quarterly

growth

State-of-the-art broadband

technologies

Broadband

Cellular Subscribers

Low penetration (0.84)

Untapped market , Low Local

Loop Access, and absence of

Content resulting hurting

economy

-

500,000

1,000,000

1,500,000

2,000,000

20052006

20072008

20092010

2011

26,611 45,153 168,082

413,809

900,648

1,491,491

1,794,467

Mobile Internet & PC Internet Users

18.0

20.0

14.4 15.7

19.0 19.5 19.8

Mobile Internet PC Internet Users

Trends towards 3G185% Mobile Internet Users growth

from last two years

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Jun-11

5.5 5.5

11.8 13.1

14.4 15.7

Millions

Economy

Education

Private – Public

Partnership

Existing

BusinessEntrepreneurship

Social

Social & Economical Impact

E-Government

Health

Energy

Transport

Reduced TimeImproved

Communication

Increased

Productivity

Improved

Customer

Relation

Management

Operational

Efficiency

ICT Localized Application Public Private Partnership

Education

Smart Grid (Power lines and Gas)

Safety and Security

Transport

Banking Micro Financing & Mobile Banking

Water management (Flood Prevent & Irrigation)

Third Party Switch Mobile Banking

Investment Potential for Mobile Banking

� Mobile Banking will create synergies with over 114

million mobile subscribers and only 27 million Bank

accounts in Pakistan

� Branchless Banking Transactions grew by 43% (July-

Sep 2011)Sep 2011)

� During Jul-Sept 2011 PKR 59 billion transacted via

Branchless Banking.

Air Time Payment Methodologies

Knowledge

based society and Economy � Knowledge Based Economy can not be realized

without Alternate Method of Payments

� Air Time Payment should be introduced by bringing a

change in State Bank Branchless banking Regulations

Converged Regulatory Framework

PTA Vision 2020

Govt

ICT & Convergence Contribution

Regulatory Dimensions to be considered

Numbering

• Regulators would be ready

for ENUM

• IP Numbering will allow

even more convergence

• More flexibility when

defining quality of service

Access

• Access networks will

evolve

• Legacy regulations might

prohibit investments and

hence delay faster

networks

• Convergence will enable a

wider and richer delivery of

content over telecom

QoS

defining quality of service

parameters per client

• QoS obligations will be

revisited Content

content over telecom

infrastructures

• Content regulation will

soon become quite relevant

to telcos and hence need to

be properly adapted

SpectrumConsumer

Rights

• Spectrum Harmonization

and Management

• Digital Dividend Band into

Play

• Network Reliability

• Privacy & Security

• Network Neutrality

• You get what you are

paying for

Economic Dimensions to be Considered

Merger and Acquisition (Permission and Processes)

Interconnection (Obligation)

Tax Regime (Infrastructure Sharing)

Supply vs Demand of Converged Services

Cost of Service and Competition

Thank youThank you