Comment by Riaz Haq on June 23, 2013 at 5:05pm

Here's an ET story on Norway's Telenor's 3G plans in Pakistan:

If the government is able to strike the right balance between upfront 3G licence fees and the industry’s capacity to invest in infrastructure, Pakistan is looking at potential investment of $5-10 billion over the next five to eight years from the five players already operating in the country.
These are the words of Jon Fredrik Baksaas, CEO of the Telenor Group. He also added that his company was looking at a potential investment of anywhere up to $1 billion over the next two to three years in Pakistan, including the upfront 3G licence fees. “Telenor is already in the process of a network swap in Pakistan. We are upgrading our base stations, which will then be ready to receive 3G equipment. We are about 50% done and should be finished by the end of this calendar year,” he said.
Baksaas was speaking to a group of telecom journalists from Pakistan at the headquarters of the Telenor Group in Oslo. Contrary to common belief, he insisted that Pakistan was not really late in upgrading to 3G. “Pakistan is not necessarily late on 3G, but it is about time to get it done.”
He believes that the Pakistani market is now mature enough, with enough mobile penetration, for the demand for 3G to be building up to a healthy level. “On paper, there is about 70% mobile penetration in Pakistan, but probably a bit less in reality, since many people have more than one SIM,” he observed.
This indicates that there is a lot of pent-up demand, which means better-than-average growth rates in the initial years of 3G, as was the case in Thailand when it finally jumped on the 3G bandwagon.
He also hoped that now that Pakistan was finally gearing up, it would be smarter than India in launching 3G. “When India had their 3G auctions, the government was too concerned with how much money they could pocket upfront and did not focus on how much financial resources to leave behind in the industry for the infrastructure to be built up. My advice to the Government of Pakistan would be to think of the balance of upfront auction fees against the ability of the companies to build quality networks in the country.”
Baksaas said this would be great for the country. “Through investment, you create profitable companies which create employment and can then be taxed. I believe that if you can raise internet penetration in a country by 10%, you can raise the GDP by about 1.5 basis points.”
He also felt that a countrywide rollout of 3G, and subsequently 4G, was very important, instead of just in major cities. “The benefits of 3G to the countryside of Pakistan will be relatively higher than 3G in the city, when you think of the daily lives of individuals and services like health, education, financial services, etc.”
He, however, did not feel that new players would be able to capitalise on the opportunity for 3G. “It has been proven difficult for newcomers to get into 3G or 4G if they don’t already have an existing network. We believe telecom is an evolution that starts with voice and sms.” When asked about Telenor’s readiness, he had just this to say: “We are ready and we are willing and we have the capacities and the competencies to build 3G in Pakistan.”
Baksaas was, however, concerned with regular cellular shutdowns in the country, as he felt that this was not a practical or efficient solution and perhaps needed to be better thought out.
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He insisted that so far growth and penetration in Pakistan has been much better than regional peers like India, because of the way the local industry is structured and regulated. In India, he said, the focus is on intense competition in the cities alone, because of which rural areas are still not covered. In Pakistan, geographical coverage is excellent in comparison.
..

http://tribune.com.pk/story/567313/high-growth-market-telenor-upbea...

Comment by Riaz Haq on March 23, 2014 at 10:08pm

Here's an Express Tribune story on the economic impact of 3G service in Pakistan:

One of the biggest questions asked when the arrival of 3G services is discussed is its benefit to the public purse.
While there is no official study available that could provide a credible assessment of the impact on economic growth and subsequent contribution in tax revenues, there is a report that gives a snapshot of the next five years. The study, conducted by UK’s Plum Consulting, has its limitations but gives an overview of what is to come.

Plum Consulting is a specialised consulting firm offering strategy, policy and regulatory advice on telecoms, online and spectrum issues. It conducted the study last year but did not factor in fourth generation spectrum in its calculations.
What we know from Plum Consulting is that the overall size of the economy will grow by Rs380 billion to Rs1.18 trillion in the period up to 2020 after the roll out of 3G spectrums. The present size of Pakistan’s economy is estimated at Rs26 trillion and a minimum addition of Rs380 billion means a positive impact of 1.5% of Gross Domestic Product (GDP).

Pakistan Telecommunication Authority Chairman Dr Ismail Shah said that the Plum study does give a broader trend. He said the rolling out of 4G spectrum will add another 20% in the GDP value assessed by Plum Consulting.
Plum Consulting says that economic studies have shown that there is a positive relationship between broadband penetration and GDP growth in both high and low income countries. Estimates of the impact of a 10 percentage point increase in broadband penetration on GDP growth rates range from 0.1% to 1.5%, with higher impacts found in lower income countries.
It added that the net present value of additional GDP over the period to 2020 is Rs1.18 trillion in the High Demand scenario and Rs490 billion in the Low Demand scenario. This is equivalent to an average 0.13 percentage points increase in the annual GDP growth rate over this period.
Plum Consulting observed that additional GDP could yield additional tax revenue for the government in the range of Rs23 billion to Rs70bn. It further said that in a high-penetration scenario, it could generate up to around 900,000 jobs by 2018, if spectrum had been released in 2013.
“As broadband is a general purpose technology it has the potential to bring significant benefits across the whole economy, and so we expect the release of spectrum for mobile broadband to have a positive impact on employment across agriculture, industry and services sectors”....

http://tribune.com.pk/story/686266/launching-3g-services-public-pur...

Comment by Riaz Haq on April 10, 2014 at 8:19am

There has been no official announcement yet about which carriers have won the 3G license or even which carriers were taking part in the “transparent” bidding process. Last week officials said they were hoping that international bidders would take part in the process.

After last week’s report that Pakistan would be handing out 3G licenses, it looks like those licenses are already being used, at least by Telenor. We’ve viewed a number of tweets from users in Pakistan who say they are testing 3G service.

However, with no official announcement about who the bidders were or what the process was like, it is certainly a surprise that Telenor suddenly has 3G on its network, particularly since executives from Mobilink and Vimpelcom were part of the delegation from the telecom industry which met with government officials. http://www.valuewalk.com/2014/04/pakistan-launches-3g-on-telenor/

Comment by Riaz Haq on April 14, 2014 at 10:19am

Spectrum for 3G 4G auction today in Pakistan, reports The Nation:

The mobile operators are going to submit their sealed bids on Monday (today) for the next generation spectrum auction that offers 3G and 4G licences simultaneously.
Presently there are 6 blocks available with PTA to be auctioned and there are five players in the market. One block is reserved only for the new entrant and no one from the existing telecom company can bid for that but the new entrants can bid for the reserved block and for the other 5 blocks too. Sources in the telecom sector say that the government will not be able to obtain $2 billion that it is aiming and the maximum gains it can get will stand at $1.4 billion with minor up and down.
There is 30 MHz available in 2100 MHz band for 3G, 20 MHz available in 1800 band for 4G services and 7.38 MHz available in 850 MHz band for 2G service and the last one is reserved for new entrant. All the players are bound to bid for the first mentioned 2100 MHz band to qualify for the bid of 1800 MHz band that offers 4G services.
Sources told The Nation that in 2100 MHz band, a bidder can bid for at least 5 MHz and in 1800 MHz band they can bid for at least 10 MHz. The base price set for the 2100 MHz band is $29.5/MHz and it is $21/MHz for the later.
Presently there are 5 companies operating in the market and among them Warid Telecom seems not interested in bidding for the next generation spectrum auction. Most probably the remaining 4 will take part in the auction and all of them might be successful in obtaining licence for the next generation mobile services but only two will be able to get 4th generation licence.
The bids submitted today will decide, whether the next stage of auction will be held or the licences will be allotted to the bidders. The sources said that if the number of applicants exceed the number of licences available that technically are 4 then the next round of auction will start on April 23 and the bidders will have to compete to obtain a licence.
But the sources said that apparently there is no hope that the number of applicants will exceed so today might be considered the last day of auction and Pakistan Telecom Authority will decide, who to allot a licence for what.
The sources said that most probably the licences will be auctioned at the base price and the government might not meet its expectations to earn much from this auction, not at least $2 billion that it was aiming to obtain from it.
The major reason is that the licence reserved for the new entrant fall in the category of 2G technology and no company seems interested to buy a 2nd generation licence while others players in the market having 3G or 4G licences. The sources said that government claimed Turk Cell was taking interest for the spectrum reserved for new entrant but there is no evidence yet that it will submit a bid for that.

http://www.nation.com.pk/business/14-Apr-2014/bids-for-3g-4g-licenc...

Comment by Riaz Haq on April 15, 2014 at 9:29am

A dismal response in this week's auction for next-generation cellphone spectrum licences means cash-strapped Pakistan will struggle to fund its budget this year, finance and IT ministry officials and telecom industry executives told Reuters.

Pakistan is set to hold long-awaited auctions for 3G and 4G network licences on April 23, a step the government projects will raise $2 billion to boost the country's foreign reserves.

But officials say there has been scant interest in Monday's bidding process and estimate Pakistan will raise no more than $850 million.

"The finance minister (Ishaq Dar) is very angry, so much so that he wants to call off the auction if we are so embarrassingly off target," said an official on his team, who declined to be identified as he is not authorised to speak officially on the matter.

"This has happened because of an over enthusiastic IT ministry which oversold an undercooked plan to its fiscal managers. It looks like heads may roll on this one."

Pakistan is the only major country in the region that still does not offer 3G services. Its neighbour, war-ravaged Afghanistan, switched to 3G services in 2012.

There are about 132 million mobile phones in use in Pakistan, a country of 180 million people, according to the Pakistan Telecommunication Authority.

Pakistan's telecommunications market was deregulated in 2004 and foreign firms such as Etisalat have invested heavily in recent years.

The finance ministry said in February that Pakistan would sell both the 3G and the more advanced 4G LTE spectrum. Selling just 3G licences could raise $2 billion, and bundling them with 4G spectrum could generate between $4 billion and $5 billion, finance minister Ishaq Dar had estimated.

The 3G spectrum auction was expected to raise Pakistan's gross domestic product by $8 billion and indirectly create up to 900,000 new jobs, a government-commissioned study by Plum Consulting said.

But when bidding closed at 4 pm on Monday, only four out of five cellular mobile companies operating in Pakistan had submitted bids and no new companies showed interest, sources privy to the bidding told Reuters.

Telecom companies Mobilink and Zong bid for 10 MHz. Telenor and Ufone both bid for 5 MHz.

Warid Telecom Pakistan, owned by the privately-held conglomerate Abu Dhabi Group, did not submit a bid, said a source in the company. Neither did Turkcell and Saudi Telecom Company, two foreign companies who had earlier shown interest.

"There are four available 3G blocks in 1800 MHz: two 10 MHz and two 5 MHz. The base price for 10 MHz block is $291 Million and 5 MHz is $146 million," said a finance ministry official present at Monday's bidding.

"The auction is thus expected to go for $863 million, nowhere close to $2 billion."

Bids for 4G LTE licences were to start at $210 million. No operator has shown any interest.

"It looks like 4G won't fetch any money," the finance ministry source said. "The disappointing bids are deepening the budget hole by almost $1.7 billion and are such a big hit the finance minister is ready to postpone the whole auction process."

Spokesmen in the finance ministry, the IT ministry and telecom companies taking part in the bid said they were not authorised to officially comment on the issue.

The disappointing response will pile further pressure on embattled Information Technology Minister Anusha Rahman, who is overseeing the auction.

She drew criticism last month after appointing her husband to the Board of Directors at Ufone, one of the companies bidding for licences and partly owned by the government. He later resigned.

http://mobile.reuters.com/article/idUSL3N0N72G620140415

Comment by Riaz Haq on April 16, 2014 at 6:32pm

Couple of reports on 3G in Pakistan:

1. From Newsweek Pakistan

The first stage of Pakistan’s 3G-spectrum sale process on April 14 exceeded projections of the federal government by $100 million, a source in the Ministry of IT told Newsweek on Wednesday.

Four telecom operators put in base-price bids totaling $1.3 billion. The federal government had estimated receipts of $1.2 billion from the spectrum sale during the current fiscal year. The companies have already deposited $200 million as earnest money with the government.

“Since demand is higher than supply, we will proceed to Stage Two on April 23,” said the Ministry source, asking not to be identified by name. “The $1.3 billion is now locked in. The second stage, when the auction happens, will allow the government to build on this further.”

The source declined to offer any estimate for the final figure from the spectrum sale.

The four bidders will be required to pay 50 percent of their final offer upfront to receive a license from the Pakistan Telecommunication Authority. They will have the option to pay the remainder over five years. To encourage timely payments, the Ministry has made bidders accept a late-payment penalty of 3 percent plus LIBOR per year.

http://newsweekpakistan.com/3g-spectrum-sale-exceeds-target/

2. From TechinAsia:

Pakistan has a vibrant mobile market with five operators providing 2G services to a total of 133.7 million subscribers. Those customers are worth $2.25 each per month to the telcos in terms of ARPU. Mobile subscriber numbers have grown rapidly in the country, up 4.7 percent between June 2013 and January this year. ...

A report by Plum Consulting (PDF link) predicts that with the deployment of 3G in Pakistan, the number of broadband subscribers will rise from its current 3.35 million to 45 million by 2020 in the more optimistic high-demand forecast, or to 25 million in the low-demand forecast (see chart below). Pricing will play a pivotal role in terms of adoption, as currently users are able to get unlimited access to 2G data services for about PKR 150 ($1.50) per month for 1GB of data....

Four of the five Pakistani operators have bid for the new licenses. Warid, the nation’s smallest telco, has decided to opt out. The two biggest operators, Telenor and Mobilink, have stated that they would be able to deploy 3G services to the masses within a few weeks as their core infrastructure is ready for 3G. Telenor has 7,500 cell sites across Pakistan that are 3G-ready, and the firm’s CTO has stated that 4G can be deployed after some minor upgrades. Mobilink has said that it will have 9,000 cell sites by July, with 70 percent of the infrastructure already revamped for 3G. The local mobile market is expecting strong smartphone sales in the weeks proceeding the 3G and 4G auction. Currently the smartphone market accounts for 15 percent of all mobile imports (1.5 to 1.7 million units per month), but it is expected to rise to as much as 40 percent within a year of the auction – that’s 600,000 new smartphones per month. Some smartphone owners in Pakistan are excitedly awaiting the auction and have started posting speed test screenshots on Facebook or Twitter as operators test their networks in limited areas.

Read more: As Pakistan prepares 3G and 4G roll-out, country expects up to 45 million high-speed data subscribers by 2020 http://www.techinasia.com/3g-auction-pakistan-grow-broadband-subscr...

Comment by Riaz Haq on May 27, 2015 at 9:41pm

#Pakistan figures prominently among major growth markets in #InternetTrends 2015 report by Kleiner Perkins @kpcb 


Internet Penetration 11%, Mobile phones owned by 144 million out of 196 million population. Only 6% own smartphones. Opportunity for strong growth with 3G, 4G rollout done in 2014. 

http://www.kpcb.com/internet-trends 

Comment by Riaz Haq on November 3, 2016 at 10:26pm

#Tablets replace books in #Pakistan's #Punjab province in a pilot program at 8 schools. https://www.geo.tv/latest/119565-Tablets-replace-books-in-Punjab-sc... …

The Punjab government has introduced e-learning system at schools. In the first stage eight public schools have been given tablets.

Students are reading science through video stories on these tablets.

Math, biology, chemistry and physics subjects are available on tablets for classes six till ten.

The lectures are available in both Urdu and English. Meanwhile e-learning libraries can also be accessed through the tablets.

Teachers claim that this initiative has made learning interactive for children. “Children learn through imagination. For example when you teach them about an atom they have to picture a nucleus and electron. The videos explain the concept to the children,” a teacher said.

“Our concepts are clearer now. The videos are interesting,” a student said.

Pakistan lags far behind when it comes to children's education. According to a study, 25 million children in Pakistan are out of school.

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