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ITU Regional Workshop on Bridging the Standardization Gap (Yangon, Myanmar, 28-29 November 2013). Broadband Proliferation in Pakistan through Universal Service Fund Zeshan Haider Senior Manager (International Coordination) Ministry of Information Technology Government of Pakistan

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Broadband proliferation in pakistan through universal service fund zeshan haider

ITU Regional Workshop on Bridging the Standardization Gap

(Yangon, Myanmar, 28-29 November 2013)

Broadband Proliferation in Pakistan through

Universal Service Fund

Zeshan Haider

Senior Manager (International Coordination)

Ministry of Information Technology

Government of Pakistan

[email protected]


Contents of presentation

Contents of Presentation

Case Study of Universal Service Fund

USF Broadband Programmes

Special Projects

Challenges & Solutions

ITU-Pakistan Collaboration

ITU-Pakistan Collaboration on Broadband


Broadband proliferation in pakistan through universal service fund zeshan haider

Why Invest in Broadband Infrastructure?

Transformation of way of lives

Facilitation of e-services

Socio-economic benefits

Achievement of Millennium

Development Goals (MDGs)


Broadband proliferation in pakistan through universal service fund zeshan haider

Universal Service Fund Broadband Programme: A Case Study of successful Investment in Broadband Infrastructure


Pak usf model

Pak USF Model

USF Co. Board of Directors

PRIVATE

PUBLIC

Nominee Cellular SPs

Minister of IT

Federal Secretary IT

Nom. Fixed-Line SPs

Member Telecom MoIT

Nominee ISPs

Nom. Consumer Groups

CEO USF

Chairman PTA

Public-Private-Partnership - rather than purely Public.

Independent - rather than a part of Ministry or Regulator

A Company – with a fully authorised Board of Directors


Broadband proliferation in pakistan through universal service fund zeshan haider

How USF works in Pakistan?

All Licensed Telcos

Government acts as a “Trustee”!

Ministry of Finance

Cabinet Division

1 Rep. each

Ministry of Information Technology

1.5% of Revenues

“USF Policy Committee”

USF Account

After competitive Bidding& Tech. Audits

‘Company’ under Companies Act 1984

USF Co.


Usf rules principles

USF Rules & Principles

Open, transparent biddingAll docs on Website

Retail Tariffs subject to PTA controls

Technology Neutral

No local monopolies:

Obligatory infrastr. share

Performance guarantees by subsidy winners

Lien on Equipment

Max 50% accumulation of subsidy

Six-monthly Audits for USFCo.


Broadband proliferation in pakistan through universal service fund zeshan haider

USF Programs


Usf programs

USF Programs

SPECIAL PROJECTS


Broadband for un served urban areas

Broadband for un-served urban areas


Usf strategy to spread broadband

USF Strategy to spread Broadband

Target Rural Areas through Community Telecenters

~470 cities & towns: no Broadband available

Rural areas: No PCs, & No Computer- literacy

  • Start by targeting Unserved Urban Areas

  • Pay only when given targets are achieved

  • More than one subsidy winner

  • Special emphasis on Education

11 to 15 large cities: Broadband is available


Features of broadband program

Features of Broadband Program

Reverse Open auction by sealed bidding among USF contributors

Subsidy bid on “per-Broadband-connection”

More than 1 winner - subject to price-matching

2/3rd or max 5 bidders can be winners, a fraction counted as 1

Output Based Assistance – provide connections to get subsidy

Targets to be achieved within project time to be eligible for subsidy

Winners to install Educational/Community Broadband Centers (E/CBC)

Target achievement verification by Tech. Auditors


Broadband proliferation in pakistan through universal service fund zeshan haider

USF Broadband Program

  • Provision of Broadband Internet Services/Connectivity in 2nd/3rd tier cities & towns

  • Establishment of Educational Broadband Centers (EBCs)

  • Establishment of Community Broadband Centers (CBCs)

  • Investment of PKR 7,557,703,815/-

  • Benefitting population of 21 Million


Broadband proliferation in pakistan through universal service fund zeshan haider

Impact of Subsidy on Broadband

One-time USF subsidy


Broadband program target areas coverage

Broadband Program – Target Areas/Coverage

  • Total served population - 32M (18%) in major Cities.

  • Un-served urban Population ~ 26mil(15%) in 11 Telecom Regions, 126 Districts with 470 towns.

  • ~ 400 (85%) unserved Towns have Population less than 100,000. Their total Population ~ 50% of Target unserved population


Broadband program achievements

Broadband Program – Achievements

  • So far 7 Projects Launched,

  • 284 Towns (70% Towns, 17mil population) covered.


Broadband achievements

Broadband Achievements

Contracts signed for 491,250 Broadband Subscribers

474,532 Broadband Subscribers achieved

1,036 Educational Broadband Centers Established

302 Community Broadband Centers Established


Broadband proliferation in pakistan through universal service fund zeshan haider

Broadband PROGRAM STATUS


Broadband proliferation in pakistan through universal service fund zeshan haider

Advertised Broadband Projects

  • Under these advertised projects a total of 668 EBCs and 145 CBCs will be established


Broadband proliferation in pakistan through universal service fund zeshan haider

Future Broadband projects


Broadband proliferation in pakistan through universal service fund zeshan haider

Emphasis on Education + Community

  • Computer Labs for Higher Sec. Schools, Colleges and Libraries in the area:

    • Free provision/installation

    • No Monthly charges for 1 year

    • 5 PCs Lab

    • Training of 2 Trainers

Educational Broadband Centers

-> Operational : 1,036

-> In progress : 262

-> Advertised : 668

Community Broadband Centers

-> Operational: 302

-> In progress : 98

-> Advertised : 145

“Educational Broadband Centers” (EBCs)


Broadband subscribers in pakistan

Broadband Subscribers in Pakistan


Special projects scope

Special Projects - Scope


Rural areas broadband telecenters

Rural Areas Broadband - Telecenters

~ 56,000 small villages in Pakistan.


Broadband proliferation in pakistan through universal service fund zeshan haider

Upcoming Special Projects

Universal Telecenters

  • Providing access to telecom services for people in the un-served and under-served rural and semi-urban areas

  • Each UTC will have;

    - Connecting internet through a 2Mbps broadband

    - Powered through renewable energy,

    - 10 laptops and other essential network elements (printer/scanner/copier/fax, etc)

  • For the benefit of communities living in remote areas of Pakistan, a pilot project of establishing UTCs at 35 locations across Pakistan has been initiated


Challenges

Challenges


Challenges hurdles

Challenges/Hurdles

  • High taxes coupled with high capital/operational expenses

  • Security Situation

  • Natural Calamities

  • Power crisis;

  • Access problems

  • O&M

  • Inflation


Challenges hurdles1

Challenges/Hurdles

Reaching un-served and under-served areas

Lack of Demand

- Affordability

Awareness

Low Revenues for investors

PC Penetration

Lack of Education

Content Development

Country-oriented policies


Broadband proliferation in pakistan through universal service fund zeshan haider

How to overcome challenges?

Extending Broadband to un-served areas

Improving affordability

Viewing Broadband as an eco-system

Creating Awareness

Up-gradation of network capability levels

Conducive public policies

Public-Private Partnerships


Telecenter challenges

Telecenter Challenges...

Someone must take responsibility with stake in the venture– not govt!

  • High speed media (like Fiber) mostly unavailable, areas difficult to reach

  • Basic knowledge of how to operate computers is lacking

  • What will the villagers do with these?

  • PCs, Electricity, Repair & Maintenance


Itu pakistan collaboration for broadband

ITU – Pakistan Collaboration for Broadband


Technical assistance by itu

Technical Assistance by ITU

  • One of the strategic goals of Telecommunication Development Sector of ITU (ITU-D) is the

    • “To assist the membership in maximizing the utilization of appropriate new technologies, including broadband,

    • to develop their telecommunication / ICT infrastructure and services, and

    • to design and deploy resilient telecommunication / ICT network infrastructures”.

  • One of the key actions of ITU Operational Plan 2012 – 15 is

    • “to enhance the level of assistance and support to administrations and ITU-D customers, taking advantage of the high expertise of the BDT staff”.

  • ITU assistance under the ITU Asia-Pacific Actions and Initiatives

    • international best practices & research,

    • statistical data availability and

    • professional/consultant help


Itu pakistan collaboration

ITU-Pakistan Collaboration

  • Secretary General ITU and Regional Director ITU for A&P visited Pakistan in May 2012

  • ITU CoE Node for Policy & Regulation in Pakistan

  • Consultancies secured from ITU on policy matters

    • Establishment of Multi-Purpose Telecommunity Centres in Rural Areas (2007-08).

    • Spectrum Management Policy (2010)

    • National Broadband Plan for Pakistan (2012)

    • Implementation of E-Government in Pakistan (2013)


Itu pakistan collaboration for broadband1

ITU-Pakistan Collaboration for Broadband

  • Under the ITU Operational Plan 2012, ITU solicited proposal from Administration of Pakistan for assistance from ITU

    • MoIT submitted a proposal for the Development of a “National Broadband Master Plan” for Pakistan which was approved by ITU for implementation.

  • Following ITU mission visited Pakistan in September 2012:

    • Mr Jim Holmes, ITU Expert

    • Mr Sameer Sharma, Senior Advisor, ITU

  • ITU mission held interviews, surveys and meetings with top-level leadership of the ICTs related entities of Pakistan


Itu pakistan collaboration for broadband2

ITU-Pakistan Collaboration for Broadband

A “Broadband Industry Workshop” was also organized in which the different stakeholders of the broadband industry of Pakistan had an opportunity to interact with the ITU delegation.

ITU Consultancy Team formulated and forwarded a draft of National Broadband Strategic Action Plan setting up Goals, specific Targets for each goal, Responsible Stakeholder against each target and Timelines against each target.

The plan is being consumed as a baseline document for the review process of Telecom Sector Policies, which are currently under review by the Ministry of IT, Pakistan.

Role of ITU is commendable for providing such free of cost consultancies to low income and least developed countries


Thank you

Thank you


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