Knowledge Based Economy Economic Solutions Dr. Mohammed Yaseen, Chairman PTA Dr. Mohammed Yaseen, Chairman PTA dryaseen.pk
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