Pakistan Next Generation Mobile Services

1. |
“Where is Pakistan going in the age of 3G”
Pakistan Telecom Authority
Date: 4th February 2014
Create a fair regulatory regime to promote investment, encourage competition, protect consumer interest and ensure high quality ICT services.

2. |
Pakistan : An Overview
SOURCE: Team analysis
Key Stats
Pakistan
▪ Income /Capita US $1300
▪ Literacy Rate 53%
▪ Media Age 21.2
▪ Geo-strategic Location
▪ Population and workforce
Land Area 796,095 km2
• 36th Largest Area
Population, mil 190 (6th Largest Population)
• 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)

3. |
Telecom Overview : Evolution of Cellular Industry in PakistanSectorGrowth
1998
1990
2004
2007
2014
• 1st GSM Operator
“Mobilink” Launched
Services
• UFONE Started its
Operations as 2nd
GSM Operator
• 1st Spectrum Auction
• Telenor & Warid begin
operations in Pakistan
• Next Generation Spectrum Auction
planned
• Auction to offer Technology Neutral next
generation services
• Value Partner having a Global footprint
hired as Auction Consultants
• CMPAK “ZONG” Acquire
Paktel and start offering
Cellular Services
• 2 Cellular (AMPS) issued to
Paktel & Instaphone
1992
SOURCE: PTA Data

4. |
Telecom Overview : Highlights of Telecom Industry in Pakistan
Key Telecom Indicators
 Cellular Subscribers (as of Nov 2013): 132.3 million (SIM
connections based on 90 days active)
 Cellular Teledensity (as of Nov 2013): 73.2%
 Annual Cellular Revenues (FY2012-13): Rs. 311 billion
 Total Male population (15+): 60.8 million
 Total Female population (15+): 57.5 million
 A subscriber holds 2.6 SIMs on average for family members
 Market is mainly prepaid oriented (~98%)
 Smartphone penetration is about 15%
 Data / VAS potential is almost entirely unexploited with ~10%
share in total revenues
 Fixed telco market is limited and this represents an important
potential for mobile broadband
 Today, mobile represents 78% of total Pakistani telco market,
and it can be expected to further increase its share in the
medium term
SOURCE: PTA Data
Mobile subscriber base evolution (# of SIMs, mln)
63.2
94.3
108.9
127.7
2006-2007 2008-2009 2010-2011 2012-2013

5. |
Broadband Technology Overview: Penetration in Pakistan (A shift towards Mobile Broadband seen since 2012 )
56.0
44.0
2012
Fixed (DSL, HFC,FTTH) Wireless(WiMAX,EvDO)
41.0
59.0
2013
Fixed (DSL, HFC,FTTH) Wireless(WiMAX,EvDO)
70.9
10.3
6.6
7.3 2.7
2.2
2013
PTCL
Wateen
WorldCall
WiTribe
Qubee
Others
60.1
14.2
8.6
9.4
3.54.2
2012
PTCL
Wateen
WorldCall
WiTribe
Qubee
Others
Conclusion
• A lot of potential remains within the
Industry to maximize the revenues
• Spectrum Auction and introduction of
faster mobile data services will trigger a
Technological growth
• Companies will be able to capitalize
from revenue generation from Data
• High un-met demand for faster mobile
services
Broadband Technology Share Broadband Operators Market Share
SOURCE: PTA Data

6. |
Potential of Next Generation Services in Pakistan
Data Revenues of Telecom Sector: Data revenue share is increasing
Local Loop Operators (FLL & WLL)
Cellular Operators: Industry yet to capitalize on Data revenue stream due to
technology limitations
Rapid growth in Mobile broadband & traffic
SOURCE: PTA Data

7. |
Where is Pakistan going in the age of 3G
• Wide range of social benefits e.g. in education, healthcare etc
•
• Distant Learning for children’s education in Remote areas
• Improved emergency responses
• Enhancement in socio-economic development which results in
increased employment opportunities·
• Improved Mobile Financial Services
• Connected Society
Conclusion: Benefits of Next Generation Services
•Index of telecommunication development has moved from
fixed line & mobile voice penetration to broadband and
connected Data
•Broadband adoption in Pakistan is low due to Limited
availability of Broad band services
•Mobile penetration of approximately 78% depicting the need
for user applications .
•Huge Market potential for provision of BB services for Social
networking, business productivity , Education, Security sector
Context: Strong Business case for Next
Generation Mobile Services
SOURCE: PTA Data

8. |
Telecom Overview: Well defined Policy , Regulatory and Industry Structure
Min of IT & Telecom
Pakistan Telecom Authority
PTCL, NTC, SCO
Frequency Allocation Board
PRIVATE OPERATORS
FREQUENCYASSIGNMENT
POLICY DECISIONS
CELLULAR, WLL, DATA & LDI
BASIC VOICE & VAS
REGULATORY FUNCTIONS
PSEB IT & SOFTWARE PROMOTION
USF/R&D Fund TELECOM DEVELOPMENT & R&D
SOURCE: PTA Data

9. |
Connected Society
Connected Devices
Connected Community
Where is Pakistan going in the age of 3G

10. |
Market (Socio-Economic Development)

11. |
Service Providers

12. |
Market (Growth)
2013 2020 2025
Populationtotal/Median
age
Mobile
Voice/MBB
MBBData
UsageTotal&
/User
226 Mn207 Mn186 Mn 22.4 Yr 24.7 Yr 26.4 Yr
125 Mn 1.5 Mn 169 Mn 47Mn 79 Mn194 Mn
2,609 1,824
TB/Mon MB/Mon
Connected
Devices
Total/PerPerson
327, 430 7,305
TB/Month MB/Mon
845,315 11,220
TB/Mon MB/Mon
3.47/Person 1,362 Mn 6.58/Person 2,146 Mn 9.5/Person
Source- Population: UN Population Census. Mobile Estimate: Plum Consulting & PTA, MBB Data Usage: Portio Research - Values Interpolated for 2025 from historical growth values
, Connected Devices: Futurist Speaker - Values Interpolated for 2025 from world average values

13. |
Enabling Technologies (Wireless)

14. |
Enabling Technologies (OFC)

15. |
Supportive Regulations
"Develop a smarter society by encouraging growth in broadband infrastructure deployment, provision
of affordable access and quality of broadband services to across Pakistan on the basis of equitable
opportunities and promotion of competition in the sector through fair regulatory regime"
Governments to facilitate the normal functioning of competition in the mobile sector rather than over-
regulating it
Governments will not discriminate in favour of, or against, new market entrants, but establish a level
playing field so that fairness and transparency is ensured in licensing and competition
Governments will promote market consolidation and allow sustainable market structures to evolve
naturally
Additional 100 to 200 MHz of spectrumby by 2025 in harmonised bands to be made available for
meeting industry demands to deliver the full benefit of mobile broadband service to consumers

16. |
PTA to ensure spectrum availability in harmonised bands of 700/800 Mhz, 850 Mhz, 900 Mhz, 1800 Mhz and 2100 Mhz which are
appropriate for next generation mobile services
PTA to encourage mobile infrastructure sharing through voluntary cooperation between licensed operators and also fecilitating third party
business
PTA to supports mobile operators transition to LTE & Advance LTE service using either TDD or FDD implementations.
Respond proactively against cyber theft & crimes to build consumer trust in online services that shall also effect uptake in the long run
Government to lay out policy guidelines to administer a 'co-regulatory' scheme to address community concerns about offensive and illegal
material online
Content licensing & Monitoring reform will be introduced to enable new business models for rights holders and commercial users to
provide attractive content offers for consumers
Unequivocal attention will be directed to extend broadband coverage across Pakistani remote areas
Regular in-house as well as third party QoS audits to ensure consumer interest are protected
Supportive Regulations

17. |
Questions
?????
Create a fair regulatory regime to promote investment, encourage competition, protect consumer interest and ensure high quality ICT services.