Rights Reserved.: Aif Group

1
Copyright © Saifgroup 2003. All

SAIF GROUP rights reserved. 6/3/2004
2
Objectives
• Telecom Deregulation in Pakistan
• Strengths of the Policy – Opportunities
• Challenges
• Conclusion

3
Telecom Deregulation in Pakistan

4
Pakistan Demographics
COUNTRY STATISTICS
Population 2002 147.5 million
Population Growth Rate 2.50%
Population under the age of 19 50.00%
Land Area 803,941 km2
Capital Islamabad
Local Currency Rupee
Annual Currency Inflation 3%
Currency Exchange Rate ~57 Rupees/Dollar
GDP 2002 US $ 61.3 billion
GDP Real Growth Rate 2002 2.60%
Per Capita GDP (PP Adjusted) $520 - $2200
Government Federal Republic
Source: BMA Capital Management Pakistan Research September 01,

2003
Source: Paul Budde Communication Pty Ltd, 2003

5
Liberalization activities and Potential Impact

6
Telecommunication Bodies in Pakistan
MOITT (Ministry of IT and Telecoms)

Generation of Policy, and Oversight on PTA, FAB and PTCL.
PTA (Pakistan Telecom Authority)
Regulates the establishment, operation and maintenance of telecommunication systems
Responsible for promoting rapid modernization of telecommunication systems and services
FAB (Frequency Allocation Board)
Allocates radio frequency spectrum to the Government, providers of telecommunication
services, radio and television broadcasting operators, public and private wireless operators
and others
Separate from, but reporting to (at least in theory) PTA.
PTCL (Pak Telecom Ltd.)
Sole provider of fixed line domestic and international telephone service in Pakistan
NTC (National telecommunication Corporation)
Limited mandate to provide services to the Government
SCO (Special Communications Organization)
Limited mandate to provide services to Azad Kashmir

7
Policy
• Telecommunication de-regulation policy has been prepared in line
with Government’s objective to de-regulate and liberalize various
sectors of the economy. The policy applies to opening up of the
fixed line telecom sector. The exclusive rights of PTCL to provide
basic telephone services, which it enjoyed under The Pakistan
Telecommunication (Re-Organization) Act 1996, have expired
since 31st December 2002.

8
Policy Objectives
• Increase service offering at competitive and affordable rates.
• Promote infrastructure development, in turn increasing teledensity.
• Increase private investment.
• Minimize exposure to Government’s (PTCL) revenue in the short
term.
• Encourage fair competition.

9
Objectives (Contd…)
• Maintain consistency with Pakistan’s IT and Internet promotion
policy to make Internet access affordable.
• Safeguard Pakistan’s national and security assets!
• An effective & well defined regulatory regime, consistent with
international best practices!
• Promotion of efficient use of spectrum.

10
Analysis
• The deregulation policy of Pakistan is unique as it provides a blend
of regulatory guidelines along with policy direction and in certain
instances delves into details of regulatory mechanisms. Such
anomalies can lead to market dynamics that are not balanced and
driven by free and fair competition and may result in either sunk or
stifled capital investment.

11
Policy Offerings
• Service Offering
– Local loop ("LL ") within a PTT region USD 10,000
– Long-distance and international ("LDI") USD 500,000
– Cellular Mobile Operations (2 Licenses Technology
Independent through ICB)
• Critical mass of the market by 2005;
– 6.5 Million fixed lines,
– 6 Million mobile phones,
– 5.0 Million Internet customers,
SAIF GROUP
12
Strengths of the Policy - Opportunity

Map Showing Population Concentrations in Pakistan

13
Pakistan Demographics
• Economic affordability levels.
Income Groups 1995-96 CAGRs (1991-96) Extrapolated 2001 (Average)
Pak Urban Rural Pak Urban Rural Pak Urban Rural
Upto-Rs.1000 2.53% 1.34% 3.03% -20% -21% -20% 0.84% 0.42% 1.02%
Rs.1001-1500 4.33% 1.73% 5.44% -19% -24% -19% 1.46% 0.43% 1.93%
Rs.1501-2000 7.82% 3.55% 9.62% -11% -21% -9% 4.31% 1.10% 6.08%
Rs.2001-2500 11.03% 5.72% 13.27% -3% -14% 0% 8.45% 1.72% 11.51%
Rs.2501-3000 11.20% 8.00% 12.55% 2% -7% 6% 11.55% 4.67% 14.97%
Rs.3001-3500 12.27% 8.20% 11.14% 7% -3% 6% 13.08% 5.21% 13.22%
Rs.3501-4000 8.22% 7.79% 8.39% 5% 1% 7% 9.34% 7.07% 9.58%
Rs.4001-5000 12.80% 14.51% 12.07% 9% 8% 10% 14.81% 15.06% 14.42%
Rs.5001-6000 8.50% 11.44% 7.26% 10% 13% 9% 9.76% 13.84% 7.00%
Rs.6001-7000 5.63% 8.21% 4.54% 11% 11% 12% 6.59% 9.86% 5.86%
Rs.7001-10000* 5.30% 8.86% 3.80% 21% 23% 19% 6.10% 12.36% 4.59%
Rs.10000 & Above* 12.38% 20.67% 8.88% 21% 23% 19% 14.24% 28.84% 10.70%
* The two last income groups have been created by splitting the last segment (Rs.7,000 & above) by 30:70
ratio (own estimate)
Source: Concept Paper for Providing CDMA in Pakistan. IAC (Pvt.) Ltd. 2003

14
Pakistan - Demographics
o 23.34 % of population < 19 years (1998 census)
SAIF GROUP
15
Market Opportunity
Current market size of Rs. 80 billion (USD 1.4 billion)
Estimated annual voice market size of Rs. 200 billion (USD 3.5
billion)
Key areas for growth
Cellular
Domestic long distance
International long distance
Wireless Local Loop
Note: Market estimation is based on achieving a penetration level of 8-10%
Source: BMA Capital Management Pakistan Research September 01, 2003

16
Plummeting Costs
June 2000: US$ 87,000/E1 August 2002: US$ 3,600/E1
200,000
180,000
120,000
88,000
35,000
6,000 3,600
Jan-97 Jan-98 Jan-99 Mar-00 Nov-00 1-Jun 2-Aug
Jan-97 Jan-98 Jan-99 Mar-00 Nov-00 1-Jun 2-Aug

Source: MOST/PTA
17
Bandwidth Available
August 2000: 32 Mb/s June 2002: 410 Mb/s

Operative Data bandwidth
380
>15 times increase
195
70
4 6 10 25
1
Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 1-Jan 1-Jun Jun-02

18
Cellular Explosion
Jan 2001: 270,000 June 2003: 2,200,000

2,200,000
1,200,000
510,000
270,000
210,000
110,000 150,000
50,000 30,000 50,000
Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 1-Jan 1-Jun 2-Jun 3-Jun
Source: MOST/PTA
19
Translating licenses into Business Opportunity
• A number of opportunities exist in the voice telecommunication

space, which are centered on obtaining the necessary licenses and
investing in the appropriate infrastructure. A number of players
have already begun to invest in the infrastructure by obtaining
comparable data and video communication licenses and are now in
a position to exploit the voice market. This in no way limits new
entrants to enter the market but rather provides acquisition and
consolidation opportunities.

20
Deregulation- Telecom Services for the private sector

21
Cellular Telephony
Current Scenario
• Four Cellular Players already in the market. Two new GSM licenses
have been awarded. License fee set at a whooping USD 291m.
Additional Investment is required by all companies to expand and
improve their networks.
Opportunities/Investment
• Obtain one of the existing cellular companies. Valuation could
range between 8-12 times earnings. Additional capital would be
required for expansion, and license renewal fee of USD 291m for
all but two of the recently non-operation companies will have to be
paid.

22
Long Distance & International License Opportunities

• Obtain one of the long distance and international licenses, which
will require investment of 3-5 years of US$ 50M to US$ 400M+ plus
an additional US$ 10 million performance bond.
• Partnerships will be required with right of way providers such as
Railways if fixed line infrastructure is to be developed.
• Alternative can be to use satellite and IP networks to establish a
domestic long distance using VoIP technologies.

23
OFN for PAK RAILWAYS- Potential to compete with PTCL!

24
Local Loop License

• Obtain one or more licenses (multiple regions) for local loop that
require investment in infrastructure over the next 3-5 years of US$
25M to US$ 100M+ in each region. Such investments will allow the
new operator to have a competing network to PTCL. The cost of
investment can range from US$ 200 to US$500 per access line.
• Implement infrastructure that will allow voice, data and video
communications thus allowing you to become a convergent
telecommunication player.
• Enter the market by setting up DSL, broadband or other data /
video networks. Use the lead time to expand into voice market at a
later date.

25

26
Wireless Statistics
Cellular penetration
reached 1.43% in the last
decade
Growth rates of over 90%+

for the last two years
Average cellular
penetration in the South
Asian region is greater
than 10%
With over 3.0 million

cellular customers, the
cellular industry has been
growing faster than the
fixed line.
Growth due to the

introduction of Caller Party
Pays (CPP) and Pre-Paid
Cards
Source: Paul Budde

Communication Pty Ltd,
2003
27
Analysis
• As a guideline document for the regulatory agency, the policy
provides legal competitive opening for private sector to invest in
highly lucrative basic telecom services, which have been so far
accessible only to 3% of Pakistan’s population.

28
Challenges

29
The beginning of Dilemma; Policy or Regulation

Regulation Policy
• Public Welfare Objectives • Public Welfare Objectives
• Sector specific • Provides Sector-specific vision
• Provides a mechanism for Market • Identifies Priority areas
Management • Promotes private participation
• Consumer Choice at affordable prices • Promotes investment
• Encourages Competition • Promotes Employment
• Is a legal instrument • Consolidate with overall economic policy
• Provides well defined Rules and Regulations • Protect National Interest
• Ensues level playing field for all • Provides Certainty and clarity of goals
• Controls barriers to entry and exit • Consolidate with Multilateral and bilateral
• Limits # of players commitments
• Protects Domestic Industry • Subject to change in Political Leadership
• Subject to change in Law or legislation • Industry specific
• Subject to market conditions and changes • General
technology changes • Promulgated by the Ministry
• Industry specific
• Explicitly identified modus operandi
• The Regulator runs the show

30
Policy Vs Policing
Pakistan India
• Telecom Policy 2003 • National Telecom Policy (NTP) 1994
• NTP 1999
• Mobile Cellular Policy 2004
………
Malaysia
What comes next, may be • National Telecom Policy (NTP) of
Malaysia 1994-2020
• Broadband Policy?
• Satellite Policy?
• Interconnection Policy?
• SMP Policy?
• Rural Development Policy?
• R&D Policy?
• USO Policy?
Then what is the role of a Regulator?

31
Comparison of Policy Framework
Pakistan India Malaysia

• Telecom & Mobile Sector Policies • Single Policy • Single Policy
• Sets objectives • Mission
• Covers Spectrum allocation, licensing • general guiding principles • Macro & Micro Objectives
process, QoS, licensing fees, • Strategy
interconnection, migration process, R&D,
USF, APC
Whereas, Policy should provide general guiding principles and regulator

has to define the modalities of various sectors of Telecom.
Experience shows that over-commitment has always fired-back.
32
SWOT Analysis of IT&Telecom Market

STRENGTHS WEAKNESSES
• Low production cost • Branding
• Skilled Human Resource • Regional & Domestic Political Instability
• Availability of infrastructure • Weak economy & corporate profiles
• Liberal policies for IT investments • Customer Confidence
OPPORTUNITIES THREATS
• Market Size • Ad Hoc Decisions From
• Privatization & liberalization of Authorities
Govt IT operations & projects • Political Instability
• Innovation
SAIF GROUP
33
Challenges for LDI operations

• PTCL has a strong fiber optic back haul across the country. With
tributaries covering around 75% of the towns.
• PTCL has installed two self healing DWDM rings, supplied by M/s
Nortel Networks and Huawei.
• NTC still has a dark fiber pair on the complete existing network of
PTCL.
• PTCL coastal fiber optic project is also underway, connecting
Karachi to Gawadar.

34
Contd…
• NTC is planning to lay down coastal fiber connecting Karachi to
Jewani.
• International connectivity through SMW-3 and FLAG.
• Ample amount of existing infrastructure/bandwidth for LL operators
to lease from PTCL/NTC. By virtue of which the incumbent shall
remain the major player in the near future!

35
Main & Alternate OFN of PTCL Mansehra
Lawrancepur
Abbotabad
Jahangira
Havelian
Mardan
Mandra
Haripur
Sohawa
Jehlum
Peshawar RWP
39
Islalmabad
Taxila 45
Dara Adam Nowshera Sialkot
20 28 44 23
Kohat Gujrat
Kharian
58 42
Ahmedi Banda 40 Shahanalok Daska
46 R I J
Latamber R Gojra
I N H Wazirabad
34 I Gujranwala
V D E
Bannu V 46
22 E U L RIVER Murid
Sarai Naurang E Bhalwal
R S U CHENAB Sheikhupura 29
49 R
M 43
Shehbaz Khel 39 31
Ahmednagar Manawala Lahore
Yarik 36 Sargodha
Shahkot
D.I.Khan 35
41
Bhakkar Faisalabad
49 Samundari
Karor Lal Ehsan Fatehpur
42 35 30
Jumman RIVER RAVI
44 Okara
Kot Addu Muzaffar Khanewal 41
New Multan 35 46
44 Garh Sahiwal
Qureshi Chowk 40 47
Chicha
Mianchannu
46
watni
8
D.G.Khan 39 24 43 Multan Arifwala
48 Sadiqwala
Jampur
46 Lodhran Burewala
42
Fazilpur Bahawalpur
53
RIVER 42 Khanqah
Kot Bahadar 45
SUTLEJ
44
Rojhan 45 Inayat pur
48
48 Dera Jattan
Kashmor
46
48
Kandh Sardar Garh
46
27 40
43 Rahimyar Khan
H.Bihar
Chak 32
40 41
Dherki
Shikarpur 27 Ghotki
Pano Aqil
39
42 Sukkur
27
Ratodero Khairpur
46
28
Ranipur
Larkana
46
Wagan 29
Ameerabad
47
52 Moro
Khairpur
Dadu Qazi Ahmed
47 45
50 Nawabshah
Sakrand
Sehw 50 46 Saeedabad
40
Seekhat
Kalari 51 33
Hyderabad
Manzoor 38 48
Kotri Site
Lonikot
50
Noriaba 39
Pirabad
42 Jherruck
35
Karachi
G.Hadeed 54 INT O
46
30 Gharro S E A
33 Thatta

36
Mansehra
Lawrancepur
Abbotabad
NTC OPTICAL FIBER CABLES
Jahangira
Havelian
Mandra
Mardan
Sohawa
Haripur
Jehlum
Peshawar RWP
CONFIGURATION
39
Islalmabad
Taxila 45
Dara Adam Nowshera Sialkot
20 28 44 23
Kohat Gujrat
Kharian
58 42
Ahmedi Banda 40 Shahanalok Daska
46 R I J
Latamber R Gojra
I N H Wazirabad
34 I Gujranwala
V D E
Bannu V 46
22 E U L RIVER Murid
Sarai Naurang E Bhalwal
R S U CHENAB Sheikhupura 29
49 R
M 43
Shehbaz Khel 39 31
Ahmednagar Manawala Lahore
Yarik 36 Sargodha
Shahkot
D.I.Khan 35
41
Bhakkar Faisalabad
49 Samundari
Karor Lal Ehsan Fatehpur
42 35 30
Jumman RIVER RAVI
44 Okara
Kot Addu Muzaffar Khanewal 41
New Multan 35 46
44 Garh Sahiwal
40 47
Chicha
Qureshi Chowk
Mianchannu
46
watni
8
D.G.Khan 39 24 Multan
43 Arifwala
48 Sadiqwala
Jampur
46 Lodhran Burewala
42
Fazilpur Bahawalpur
53
RIVER 42 Khanqah
Kot Bahadar 45
SUTLEJ
44
Rojhan 45 Inayat pur
48
48 Dera Jattan
Kashmor
46
48
Kandh Sardar Garh
46
27 40
43 Rahimyar Khan
H.Bihar
Chak 32
40 41
Dherki
Shikarpur 27 Ghotki
Pano Aqil
39
42 Sukkur
27
Ratodero Khairpur
46
28
Ranipur
Larkana
Wagan 29
47
46
Ameerabad
LEGEND
52 Moro
Khairpur
Dadu Qazi Ahmed
47 45
Nawabshah
MAIN OPTICAL FIBRE LINKS

50
Sakrand
Sehw 50 46 Saeedabad
40
Seekhat
ALTERNATE OPTICAL FIBRE LINK

Kalari 51 33
Hyderabad
Manzoor 38 48
Kotri Site
Noriaba
Pirabad
Lonikot
39
50 PINDI - PESHAWAR O/F LINK
SPUR ROUT
42 Jherruck
35
Karachi
G.Hadeed 54 INT O
46
30 Gharro
TERMINAL/ADD-DROP STATION
S E A
33 Thatta
REPEATER STATION
37
Local Loop License

• Moving from monopoly status, PTCL is very aggressively launching
new services and access technologies.
• PTCL is laying a Fiber optic access network in Karachi, Lahore,
and Islamabad.
• WorldCall is also laying its HFC network in Karachi and Lahore.
• TeleCard has already implemented a CDMA 1x WLL network of
150k phones in an O&M agreement with PTCL.
• Many of the telecom regions cannot sustain themselves if the
network does not have similar operations in high ARPU areas like,
Karachi, Punjab, Peshawar.

38
TeleCard's Strategy – Migrate CDMA WLL to Mobility
Telecard is planning to cut prices from Pak Rs. 3/minute to Pak Paisa
30/minute
Recently signed a contract with M/s Lucent for deployment of EV-DO
network
Telecard plans to move gradually towards:
Incoming calls on PCO’s
CDMA Fixed Wireless Terminals – in addition to Payphones for
Residences and SOHO
Then move towards CDMA Handsets

39
PTCL
PTCL is deploying a CDMA WLL based network across the country (14
regions)
These deployments are in 450 MHz band
Huawei will provide CDMA infrastructure
PTCL is considering CDMA mobile handsets as well as FWT for terminal
distribution
Pak. Rs. 7000 for handset & Rs. 9000 for FWT
Initial deployments will focus on rural areas
PTCL plans to Later Expand WLL services to urban regions.

40
Radio Frequency Spectrum

• Due to deregulation there has been a sudden influx of telecom
companies into the market. The RF spectrum has become the
single most important commodity for the Local Loop operators.
Open bidding is the set modus operandi for the auction of spectrum
as was the case with CMT licenses. Judging the way the auction
went for mobile telephony, the RF is going to take up major part of
the CAPEX. This will in turn adversely affect the cost of service and
subsequent business plans.
• 33 parties initially showed interest for mobile license with only 9
coming to the table. For LL an approximate 100 parties are going to
apply.

41
AWARD OF CELLULAR MOBILE TELEPHONY LICENSES HELD ON

WEDNESDAY THE 14TH APRIL 2004 AT ISLAMABAD SERENA HOTEL
FIRST - STAGE [SEALED BIDS] US $ millions
• TELENOR Mobile Communication, Norway 161.000

• WARID Telecom, Pakistan 151.000
• SPELL Telecom –FAUJI Foundation – AWT, Pakistan 140.000
• WORLDCALL Communications, Pakistan 130.000
• SPACE Telecom, Pakistan 101.000
• SABAFON, Yemen 100.000
• INVESTCOM Holding, Luxembourg 100.000
• RUPANOVA, Pakistan 88.000
• Dubai INTERNET City 41.000

42
SECOND – STAGE [OPEN OUT-CRY] US $ millions
• TELNOR Mobile Communication, Norway : 167/ 170/ 173/ 176/ 179/ 185/
188/ 191/ 194/ 203/ 206/ 209/ 212/ 215/ 219/ 222/ 229/ 232/ 235/ 238/ 241/ 244/
247/ 252/ 255/ 258/ 261/ 275/ 278/ 291
• WARID Telecom, Pakistan :166/ 169/ 172/ 175/ 178/ 181/ 187/ 190/ 193/ 202/
205/ 208/ 211/ 214/ 217/ 220/ 223/ 230/ 233/ 236/ 239/ 243/ 246/ 251/ 254/ 257/
260/ 266/ 277/ 283/---291
• SPELL Telecom – Fauji Foundation – AWT, Pakistan :171/ 174/ 177/ 180/
189/ 192/ 201/ 204/ 207/ 210/ 213/ 218
• WORDCALL Communications, Pakistan:165
• SPACE Telecom, Pakistan :168/ 216/ 221/ 228/ 231/ 234/ 237/ 240/ 242/ 245/
250/ 253/ 256/ 259/ 265/ 276/ 279/ 291

43
Significant Market Power (SMP)
• PTA has yet to declare any Mobile Operator as SMP.

• What is going to be the scope of Anti-competitive provisions will be
enforced by PTA in the license?
• Neither the policy, nor the license details any obligations of SMP or a
recourse for any non-SMP.
“A private monopoly is more dangerous than a public monopoly!”

44
Quality of Service (QoS)
• A major strength of policy as it sets benchmarks for operators to

achieve.
• The benchmarks have to be more specific, i.e. standard for blocking at
the Air Interface, Interconnect etc.
• No signal quality parameters (e.g. indoor coverage) have been
defined in the policy.

45
Universal Service Obligation (USO) &

Access Promotion Contribution (APC)
• Mobile operators have to pay 1.5% of their gross revenue minus inter-
operator and PTA mandated payments to a USO fund.
• These funds will be allocated to operators in order to subsidize service
provisioning to rural and low income areas.
• No guidelines regarding eligibility for USF payments been set.
(Operators cannot incorporate USF in their business plans)
• No vehicle for disbursement of USO has been established.

46
Universal Service Obligation (USO) &

Access Promotion Contribution (APC)
• Mobile Operators are not eligible to receive APC. The APC premium
will be diverted to USF instead.
• The objective (V) of the policy states,” Fair competition amongst
mobile and fixed line operators”.
Does granting the Wireless Local Loop operators the right to offer
limited mobility and denying the mobile operators the right to Receive
APC premium qualify as fair competition???

47
Conclusion

48
Investment Rates Required

• The potential for future growth of this sector remains high, as there
is pent-up demand in both the urban and rural areas. This is
evidenced by the fact that PTCL has over 200,000 pending orders
for new connections at any given time and that additional capacity
in the cellular network was almost immediately booked when Ufone
entered the market. The general limiting factor remains available
infrastructure, which has been one of the lowest in the region

49
Investment rates comparison as a % of GDP for

Asian Countries

50
Local Loop
• Market potential for WLL services exists and is estimated to be 11
million households by year 2011 if the most suitable technologies
are utilized.
• The feasibility of the business case depends on several factors
including the available spectrum, demographics and the required
services.
• In this respect the total cost advantage of a CDMA2000 1x EV-DO
operating at 450 MHz are clear.

51
Cellular Mobile Telephony

• 2 Additional Mobile Licenses Added to Crowded Market:
– 4 Current Mobile Carriers with 3M Subs. (3 GSM, 1 DAMPS
may be moving to CDMA).
– Limited High ARPU Subscribers - Cannot Support 6 Carriers
and License fee.
– Possible auction of other 3G licenses
• Limited Mobility WLL networks set to adversely effect revenue
streams, especially the ones using 3G technologies.

52
Long Distance & International

• Need partnerships with ROW providers.
• Time to market substantially high.
• Abundant capacity already available. (PTCL/NTC)
• Massive amounts of investments (Human, Capital, Other
Resources) Required.
• Feasible for companies with large internal traffic generation e.g.
Mobilink.
• Next Generation Deployments may reap great revenues in the
times to come. e.g. Reliance India.
• Piggybacking on incumbents network i.e. leasing bandwidth, with
personal investment in VoIP gateways is a viable option.

53
OPPORTUNITY?!

54
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1

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

Telecom Deregulation in Pakistan

Copyright © Saifgroup 2003. All

Source: BMA Capital Management Pakistan Research September 01,

Copyright © Saifgroup 2003. All

Liberalization activities and Potential Impact

Copyright © Saifgroup 2003. All

Telecommunication Bodies in Pakistan

 MOITT (Ministry of IT and Telecoms)

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

Strengths of the Policy - Opportunity

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

Source: BMA Capital Management Pakistan Research September 01, 2003

Copyright © Saifgroup 2003. All

Jan-97 Jan-98 Jan-99 Mar-00 Nov-00 1-Jun 2-Aug

Jan-97 Jan-98 Jan-99 Mar-00 Nov-00 1-Jun 2-Aug

August 2000: 32 Mb/s June 2002: 410 Mb/s

Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 1-Jan 1-Jun Jun-02

Copyright © Saifgroup 2003. All

Jan 2001: 270,000 June 2003: 2,200,000

Translating licenses into Business Opportunity

• A number of opportunities exist in the voice telecommunication

Copyright © Saifgroup 2003. All

Deregulation- Telecom Services for the private sector

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

Long Distance & International License Opportunities

Copyright © Saifgroup 2003. All

OFN for PAK RAILWAYS- Potential to compete with PTCL!

Copyright © Saifgroup 2003. All

Local Loop License

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

 Growth rates of over 90%+

 With over 3.0 million

 Growth due to the

Source: Paul Budde

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

The beginning of Dilemma; Policy or Regulation

Copyright © Saifgroup 2003. All

Then what is the role of a Regulator?

Copyright © Saifgroup 2003. All

Comparison of Policy Framework

Pakistan India Malaysia

Whereas, Policy should provide general guiding principles and regulator

SWOT Analysis of IT&Telecom Market

Challenges for LDI operations

Copyright © Saifgroup 2003. All

Copyright © Saifgroup 2003. All

Main & Alternate OFN of PTCL Mansehra

Copyright © Saifgroup 2003. All

NTC OPTICAL FIBER CABLES

MAIN OPTICAL FIBRE LINKS

ALTERNATE OPTICAL FIBRE LINK

Local Loop License

MOITT (Ministry of IT and Telecoms)

Growth rates of over 90%+

With over 3.0 million

Growth due to the