You are on page 1of 33

Wateen Telecom Limited

The Wateen Vision

To be the leading Communication, Infotainment & Solutions service


provider in Pakistan
 Leading “Carrier’s Carrier” make Pakistan a “Regional
Communications, Infotainment & Solutions Hub”
 Lead a digital revolution & make “Broadband Pakistan” a reality
 Provide a unique customer experience & exceed customer
expectations
 Bridge the gap of “Affordability” and “Availability”

Create a robust Communications, Infotainment & Solutions platform that:


 Is technology agnostic
 Provides converged multi access services
 Allows integrated secure solutions, and
 Provides end-to-end cost effective solutions

2
Wateen Key Investment Highlights
Key markets with high growth profile at infant phase with high propensity to use of such services:
 Internet market infant at 5 million
Untapped Markets with High
 Fixed LL/WLL Voice market of 6.2 million
Growth Potential  Limited quality telecoms infrastructure in country
 12.7m TV Sets with 4.8m pay TV users in highly fragmented HFC market with industry media
spend of PKR 23 billion
Large population in Pakistan growing annually at c. 2% with growing middle class and young ages

Cutting edge technological platforms for core, access & transmission


A Leader in Innovation and
Customer Service Innovative and differentiated services through converged multi access and next generation network
Segmented approach & strong focus on service and quality of the overall customer experience

17 National and 4 international LDI POPs catering for 1 billion plus minutes per annum
Leading network (10,000+ km optic fiber infrastructure, 1,100 WiMAX sites)
Established Operational Track
Record Only converged multi access service provider
Established VSAT network (C band + Ku Band) with 500+ MHz of bandwidth in use
WiMAX network rolled out in 22 cities with 1,100 sites

Positioned as converged services provider through cross/up-selling multiple product / platform


bouquets. Especially in Enterprise Market
Poised to Leverage Operational Rapid roll-out of new products due to end to end IP network with common provisioning platform
Experience and Maximize Assets
Usage through Multiple Product Knowledge base of implementations captured in processes/systems to optimize future
Bouquets deployments/operations
Significant existing infrastructure allowing low cost and rapid new product / platform deployment

Wateen has been profitable since inception, delivered cum profit of PKR 2.1 billion from
Self Funded Operations with
Strong Growth Outlook inception to 30 Nov 2009
Well balanced product portfolio to allow profit and cash generation to match investment in new
services
3
Key achievements
With in a short span of time Wateen has achieved:
• The company has launched one of the world’s largest WiMAX (3.5 GHz) network covering 22 cities and 1,100 sites
across Pakistan
• Customer base of over 150,000 representing more than 60 percent of the wireless broadband market
• 12,000 broadband customers over fiber with 2,700 corporate links including 26 out of 31 commercial banks in Pakistan;
Major clients include
 Carrier: Warid, CM Pak for dark fibre, Telenor for managed capacity and VSAT, Mobilink for OFC joint preventive
measures
 Corporates: Clients include 26 Banks, 8 Media companies, 13 Telecos & Carrier over 2,700 links in other corporates
• The Company is also proudly the largest operator of Satellite services in the country with 500+ MHz in commercial use
• Largest alternative LDI operator in the country; over 1 billion minutes per annum including direct LDI routes /
interconnects with major incumbents i.e. Etisalat, STC, BT, MOC Kuwait etc.
• Deployed fully redundant fibre optic network in record time spanning over 10,000+ Kms
• Established sales channel network which can be leveraged to ensure critical momentum
• Well trained Wireless Operation team for installation and support
• Tested business processes including entire customer lifecycle management
• Largest ISP call centre – (200 agents capacity)
• Robust pre/post paid billing system
• State of the art Business Intelligence (BI) system in place
• Tele-housing / Co-location facilities in 70 cities
• Cisco top customer advocacy partner in the Middle East, Africa Region in 2006
• Successfully completed VAR / PS (IP telephony, IP Contact Centre, Data Centre, Enterprise Data Network) project in
Uganda, Congo and Bangladesh
• On an investment of PKR 2 billion, Company delivered cumulative revenue of PKR 37.5 billion, EBITDA of PKR 5.8
billion and profit of PKR 2.1 billion since inception to November 2009 including management fee
Overview of Wateen’s Strategy

Product portfolio
 Create a balanced portfolio of products and services to ensure
 Short & Medium term profit generation (such as LDI, Managed Capacity and Solutions);
 Medium & Long term cash generation (such as WiMax); and
 Long term shareholder value enhancement (FTT(x) and Infotainment)
 Management of operational risk profile and optimization of cash flows
Growth strategy
 Product innovation and rapid time-to-market
 Leveraging infrastructure and cross / up selling from Wateen’s complementary business
lines
 Strong resource base in Pakistan for local and international opportunities
 Alliances and partnerships with strategic vendors, brands and partners
Customer focus and technological excellence
 Focus on customer satisfaction and experience through extensive CRM
 Provide high quality service at affordable prices
 Focus on consumer communities & industry (business markets) segments
 Technical excellence / understanding technical solution to meet commercial needs

5
Wateen’s Network
Wateen Optical Fiber Cable (OFC) Network
providing inter and intra city connectivity Karachi to
Peshawar Mardan

 10,000+ km covering all the four provinces of WiMAX


Metro Fiber
Cities
Peshawar
Pakistan and providing metro connectivity in 22 Nowshera Cities
Abbotabad
major cities of Pakistan Kohat
Karachi
 DWDM Deployment of 160 Lambda Scalability Ahmedbanda
Taxila
Islamabad Karachi
Lahore
Mandi Gujar Khan
Bahauddin Faisalabad
Lahore
 76 existing ADM Sites and increasing Khushab
Jhelum
Bannu
Gujrat
Kharian
Peshawar
Quetta
 International Connectivity with Neighboring Mianwali Sialkot
Islamabad
Multan
Sargodha Gujranwala Wagah
Karak
Countries (Iran through Taftan, Afghanistan Jhang
Chiniot Lahore
Hyderabad
Pindi
Faisalabad Raiwind
through Torkham, India through Wahgaborder) D I Khan Gojra Kasur
Pattoki Gujranwala
Faisalabad
T T Singh Sahiwal
MPLS Core for QoS Bhakkar
Chichawatni
Okara
Pakpattan Islamabad
Sialkot
Quetta
22 Cities WiMAX Network
Layyah
Khanewal Arifwala Gujranwala
Rawalpindi
Satellite connectivity (VSAT & DVB-RCS)
Kot Addu
Qureshi Chowk
Multan
Burewala
Sialkot
Gujrat
Vehari
Taftan
Chaghi
Dringer Mach
D G Khan Sargodha
Sahiwal
Triple Play Services HFC & GPON Nushki Muzaffargarh Mailsi
Nokundi
Sibbi Fazilpur Sargodha
Quetta
 Data & Internet Ahmanwal Mastung Lodhran
Multan
Gujrat
Kharan Rojhan
Dalbadin Bahawalpur
 Voice Surab Dera Murad Jamali Khandkot
Liaquatpur Sahiwal
Jhelum
Salimabad Basima Jacobabad
 Video Khanpur Dharki Rahim Yar Khan
Bahawalpur
D. I. Khan
Nag Sadiqabad
Mashkhel Washuk Nal Khuzdar
Sobhodero
Shikarpur Sukkur
Abbottabad
Peshawar
Ranipur
Panjgoor Larkana
Johi Amirabad Sukkur
Hoshab Thano Bula Khan Daulatpur Abbotabad
DI Khan
Dadu Nawan Wali Muhammad

Nawabshah
Td.Adam
Berani Hyderabad
RY Khan
Gawader Kalri
Jam Nawaz Ali
Jehlum
Hyderabad Mirpur Khas
Jamshoro
Umer Kot
Okara
Nooriabad

Karachi Thatta
Judho
Chachro Sheikhupura
Sujawal JatiTando Bhago
Gharo
Mirpur Sakro Badin Islamkot
Chuhar Nagar Parkar
Ghora Bari Shah Bandar
Jamali
Kati Bandar

6
Products & Services
Wholesale products
 Dark Fiber
 Lambda Service
 Managed Capacity
LDI
 DPLC & IPLC and Transit
WiMAX B
 Co-location / Telehousing ro
FTT(x) adband age
d
Man acity
OFC
 Value Added Reselling (VAR)
Cap Satellite
 Professional Services Communication
 Managed Network Services (MNS)
Co ce
 Hosted Solutions n ve g en
rg er
en o nv
Retail products

Convergence
ceC

 Broadband Internet
Solutions Media
 Data Portfolio
 Telephony – consumer
 Wateen Audio Conferencing VAR & PS
 Wateen Video Telephony
BPO VAS / Portal
 Carrier Pre-Select (CPS)
 Calling Card / Calling account
TV Channels
Roadmap
High

IP / Converged Broadband
Satellite/ GPON
FTT(X) TV Channels
Managed Capacity (Int’l Distribution)
DTH
Capacity (Rebroadcast / Own)
(OFC) Video Calling e.g. Skype,
Triple Play Application & Software Vounage
(Satellite TV)
Development
e.g. GEO, Hum, MTV, HBO, FTV
e.g. BSkyB, Tata Sky, Astro
Managed Capacity Enhanced Voice Digital Content
(IP Centrix) BPO
Value / Priority

(VSAT) Triple Play e.g. Arvato, Youtube


Mobile (MVNO)
(Voice & Internet & TV) WiMax Portal e.g. Virgin Mobile
e.g. Sing Tel, BT, Rapid Deployment (AOL, Yahoo)
Managed OperationsData Center
Coverage Radio
Etislat, PTCL (NOC, O&M) (Tele Housing,
Limited Mobility
VAR & PS
Data & DR,Security
DC) & Surveillance
Backhauling VSAT
LDI Wholesale Managed
Rapid Deployment
(pk) Call Center Int’l
Redundancy LDIGaming
POP’s
Rural Deployment

Class 4 / LDI
Int’l LDI Wholesale (Trading Floor)
e.g. IDT, BT
LDI Retail
Calling Card & LCR Communications
LDI Retail Solutions
Calling Accounts Content & Media
Out of Plan

Medium To Date Roadmap


8
Financial Overview (Historic)
Operating profit (PKR million)
Revenue (PKR million)

3,500 3,018
20,000
16,185 3,000
16,000 2,500 1,998
12,000 2,000
9,289
1,500
8,000 786
4,448 1,000 503
4,000 2,794 500
0
0
2006 2007 2008 2009
2006 2007 2008 2009

PAT (PKR million) Share capital & reserves (PKR million)

1,200 1,084 6,000


1,019 4,767
5,000
900 3,747
4,000
2,663
600 3,000 2,210
386
2,000
300 227
1,000
0 0
2006 2007 2008 2009 2006 2007 2008 2009
Historic financial performance
Income statements
Historic financial performance
Balance sheets
Projected Financials
Income statements
Projected Financials
Balance sheets
IPO Transaction - Overview
WTL has proposed to issue additional 110,000,000 shares to institutional
investors and general public at a price of PKR 10/- per share amounting to
PKR 1,100 million with a Greenshoe option of 90,000,000 ordinary shares;
The paid up capital of the Company will increase from PKR 4.174 billion to
PKR 5.275 billion;
The proceeds of the IPO will be utilized to:
 retire long term financial obligations of the Company; and
 acquire Wateen Solutions (Pvt.) Limited to make it a wholly owned subsidiary.

The public offer will be fully and firmly underwritten


IPO Transaction – Term sheet
Transaction Initial Public Offering of Ordinary Shares
Company Wateen Telecom Limited
No. of shares Up to 110,000,000 ordinary shares through IPO
Up to 90,000,000 ordinary share through Green shoe Option
Issue price PKR 10/- per share
Issue amount PKR 2,000,000,000/-
Advisors and Arrangers Arif Habib Limited
Listing Karachi Stock Exchange (Guarantee) Limited (“KSE”)
Participants/Investors Institutional investors and general public
Underwriting commission We recommend 1.00% underwriting commission of the amount
underwritten. The amount will be payable at the time of execution of
underwriting agreements.
Take-up commission 1.50% of the amount actually taken up by the underwriters
Utilization of IPO proceeds
The Company has planned to raise funds through an IPO for:
a) Retirement of loan obligation
– WTL raised PKR 1.469 billion from commercial banks to acquire
new equipment to expand its operation;

b) Acquisition of its subsidiary company i.e. Wateen Solutions (Pvt.)


Limited (formerly National Engineers (Pvt) Limited).
Utilization of IPO proceeds
(Wateen Solutions (Pvt.) Limited

Incorporated in May 2004 with a name Microtech Links (Pvt.) Limited;


Provides telecom infrastructure solutions to corporate and Banks.
Existing shareholding structure of WSPL is:

Shareholder Shares Percentage


Wateen Telecom Limited 413,212 50.99%
Mr. Jahangir Ahmed 397,027 49.00%
Others 20 -
Total 810,259 100%

Wateen will acquire the remaining 49% stakes of WSPL from Mr. Jahangir Ahmed at a
price of PKR 1,234.18 per share, amounts to PKR 490,000,000, to make it a wholly
owned subsidiary.
Par value of the share is PKR 100; whereas breakup value stands at PKR 452
EPS for the year ending 30th June 2009 stands at PKR 327
Annexure
Wateen Licenses
Nam e of
Iss uing previous Licens e
Licenses Authority ow ner NOC date Territory Licens e No. Lice nse Date Expiry Date Term
Long Distance and International
License (LDI) -
Pakistan PTA Warid Telecom 26-Oct-05 Pakistan 10(17)-2004 26-Jul-04 25-Jul-24 20 Years
Data Class Value Added
Services License (CVAS) DIR (L)/CVAS-
- Pakistan PTA NIL NIL Pakistan 214/PTA/2007 10-May-07 9-May-22 15 Years
Long Distance and International LDI-
License (LDI) - LDI(AJK&NA)-
AJK & NA PTA NIL NIL AJK & NA 05-2008 28-May-08 27-May-28 20 Years
Data Class Value Added AJK & NA DIR (L)/CVAS-
Services License (CVAS) - AJK (TR-1 & TR- 12/AJK&NA/P
& NA (TR-1 & TR-2) PTA NIL NIL 2) TA/2008 28-May-08 27-May-23 15 Years
Data Class Value Added DIR (L)/CVAS-
Services License (CVAS) AJK & NA 13/AJK&NA/P
- AJK & NA (TR-3) PTA NIL NIL (TR-3) TA/2008 28-May-08 27-May-23 15 Years
Wireless Local Loop License
(WLL) - Muzafaraba WLL(AJK&NA/
Muzafarabad (TR-2) PTA NIL NIL d (TR-2) TR-II-02-2009 3-Jun-09 2-Jun-29 20 Years
Northern
Wireless Local Loop License Areas WLL(AJK&NA/
(WLL) - Northern Areas (TR-3) PTA NIL NIL (TR-3) TR-III-02-2009 3-Jun-09 2-Jun-29 20 Years
Wireless Local Loop License
(WLL) CTR, NTR-I, KTR, MTR,
STR-I, RTR, HTR, STR-V, NTR-II, October,
GTR, ITR, FTR, WTR PTA Warid Telecom 2005 CTR WLL-03-2004 1-Dec-04 30-Nov-24 20 Years
Wireless Local Loop License
(WLL) – ITR, LTR (N/S), KTR,
FTR, GTR PTA Microtech Links 31-Aug-06 ITR WLL-04-2004 4-Nov-04 3-Nov-24 20 Years
WLL spectrum and cell sites
Region Band Range City Shared Own Grand Total
Abbotabad 9 1 10
CTR 21 3499.25-3520.25
Attok 1 0 1
FTR 42 3499.25-3541.25
Bahawalpur 8 1 9
GTR 42 3541.25-3583.25 D I Khan 5 1 6
HTR 21 3499.25-3520.25 Faisalabad 71 4 75
ITR 42 3499.25-3541.25 Gujranwala 37 2 39
KTR 42 3499.25-3541.25 Gujrat 15 2 17
LTR* 42 3499.25-3541.25 Hyderabad 23 1 24
ISB/RWP 119 16 135
MTR 21 3499.25-3520.25
Jhelum 11 1 12
NTR-1 21 3499.25-3520.25
Karachi 211 30 241
NTR-2 21 3499.25-3520.25 Lahore 197 28 225
RTR 21 3499.25-3520.25 Multan 38 3 41
STR-1 21 3499.25-3520.25 Okara 9 1 10
STR-V 21 3499.25-3520.25 Peshawar 39 1 40
WTR 21 3499.25-3520.25 Quetta 26 1 27
RYK 4 2 6
Sahiwal 10 1 11
Sargodha 12 1 13
Sheikhupura 9 0 9
Sialkot 20 4 24
Sukkur 8 1 9
*In partnership with DHA Grand Total 882 102 984
Competitive landscape

L
H
Product portfolio
Wholesale products
 Dark Fiber
o Dark Fiber is leased to organizations seeking dark fiber connectivity on an IRU basis i.e. Indefeasible Right of Use
which varies from 3 years to 20 years; depending on customer preference. Wateen only provides the customer with a
pair of dark fiber and the customer is responsible for ‘lighting’ it up i.e. making it operational by setting up the required
equipment. The product is positioned to match the insatiable appetite for bandwidth in the Carrier & Operator segment,
specifically the mobile phone operators. With Wateen’s nationwide optical fiber network capacity almost at an unlimited
level, Wateen introduced this product in the market to gain high margins and a quick ROI from optical fiber network.

 Lambda Service
o Wateen Lambda service provides 10Gbps connectivity over fiber, by ‘lighting’ up just a single wavelength from the full
optical signal, stretching up on the nationwide fiber network. The allocation of bandwidth over the lit-up Lambda is
targeted to serve as the secondary/redundant link for the carrier, ensuring high reliability and availability imposed
through the Service Level Agreement (SLA).
 Managed Capacity
o Where customers seek lower capacities of bandwidth, Wateen offers managed capacity on its fiber and VSAT
networks. Wateen’s clear channel circuit or Layer 2 MPLS Virtual Private Network (VPN) also known as L2VPN, is a
point-to-point “pseudo-wire” service. It is used to replace existing physical links based on TDM circuits. This model is
mostly suitable for customers who have a traditional hub and spoke network topology. All sites are connected to an
aggregation site which serves as the regional hub resulting in a point to multipoint link between the aggregation site
(the hub) and the remote sites (spokes).
Product portfolio - Wholesale
 DPLC & IPLC and Transit
o DPLC provides for domestic transport within Pakistan, whereas IPLC provides transport across international
destinations. For DPLC (Domestic private leased circuit) Wateen uses its own Optical Fiber network both on the
nationwide and metropolitan area networks, whilst for an IPLC (International private leased circuit) various submarine
cable systems are used. IP-Transit, simply put, is raw Internet bandwidth which operators and large organizations
acquire to have presence on the Internet backbone.
 Co-location / Telehousing
o For our strategic partners, Wateen provides state of the art facilities for Co-location/Tele-housing, to deploy their
infrastructure. The sites have a provisioning of inter carrier connectivity, space, security, fire detection/suppression,
back up power and bandwidth capacity.
 System Integration
o Value Added Reselling (VAR) - Wateen adds value by selling high technology products backed with skilled and low cost
deployment and support. Some of its products include IP Telephony, IP Contact Center, IP/MPLS, EDN’s and Intelligent
Video Surveillance Systems.
o Professional Services - Wateen’s Professional Services deliver customized services for the planning, designing,
implementation, and optimization of IT/Telecom solutions based on business needs of the customer.
o Wateen also provides Managed Network Services (MNS) and Hosted Solutions for varied needs of customers.
Product portfolio - Retail
Retail products
 Broadband Internet
o Wateen has revolutionized the way Broadband services are offered to the consumer. With service offerings in
more than 22 cities and an experienced set of individuals who specialize in WiMAX services, Wateen is miles
ahead of newer WiMAX players. For the premium seeking market, Broadband services through HFC (Hybrid
Fibre Coaxial) and GPON (Gigabit Passive Optical Network) in Lahore, Multan and Karachi in the near future,
offer the consumer a unique taste of unmatched service excellence.
 Data Portfolio
o Enterprise customers can enjoy a virtual private network (VPN) for provision of secure clear channel circuit, which
is offered in Layer 2, Layer 3 and Any-to-Any configuration to cater to various needs of different customers. The
product is offered on multiple platforms and on various bandwidths so that various bandwidth requirements can
be fulfilled, along with the flexibility of the client to request a change in bandwidth.
 Telephony – consumer
o Wateen’s Fixed Line Telephony has been designed to meet and exceed the basic communication requirement of
every customer – an affordable and high quality telephone service. Leveraging Wateen’s longhaul network and its
LDI operations, Wateen provides its customers with reliable and superior services. Wateen’s fixed line telephony
seeks to enrich the ‘Telephony Lifestyle’ of its subscribers by offering them high quality services, user friendly call
management features and empowering them through a self-care portal.
 Wateen Audio Conferencing
o Wateen audio conferencing services allow home users with a hassle-free tool to communicate with anyone and
everyone in their social networks – speaking to many family members in different countries simultaneously or
carrying out a group study session without ‘actually’ being present together is all easier than it sounds.
Product portfolio - Retail

 Wateen Video Telephony


o Wateen video telephony seeks to add that ‘visual’ touch to simple voice conversations. An affordable product for
the mass consumer market, Wateen Video Telephony will allow users to not only talk to one another but at the
same time see each other, all with the convenience of a normal voice call. Imagine ‘virtually’ sitting across each
other despite being hundreds of miles apart, imagine never missing a smile again.
 Carrier Pre-Select (CPS)
o Carrier-pre-select (CPS) is an innovative product providing the end users of different operators the flexibility to
choose the carrier for calling international, local or nationwide numbers. Wateen provides CPS services to
various different LL and GSM service providers, where the end user benefits from cheaper rates with high quality
voice and the operator enjoys additional revenues and increased subscriber base. This service generates over 5
million minutes per month, which also contributes to the LDI wholesale margins.
 Calling Card / Calling account
o WCard is a multi function card that enables customers to use it as a calling card from other operators in addition
to top up their Wateen pre-paid account. Calling card services received the brand of the year award in the first
year of launch and captured a major share of the market within the first 6 months. This service also contributes to
the LDI (Long distance & international) wholesale business, where additional profits are generated through the
wholesale service.
Key Suppliers & Partners
Key suppliers of the Company are as follows:

 Motorola
 Huawei Technologies
 CISCO
 IBM
 Polycom
 Microsoft
 National Engineers System Integrators
Sponsors’ profile
The Company enjoys a strong sponsorship of Warid Telecom International LLC and
Bank Alfalah Limited;
Both companies are backed by the Abu Dhabi Group;
Existing shareholding pattern of WTL is:

 Warid Telecom International LLC – 79.84%


 Bank Alfalah Limited – 20.00%
 Individual shareholders – 0.16%

Wateen’s Board members comprise of:

 H.H. Sheikh Nahayan Mabarak Al Nahayan – Chairman of the Board


 Sheikh Saif Bin Mohammed Butti Al Hamid
 Mr. Ahmed Darwish Dagher Al Marar
 Mr. Bashir A. Tahir
 Mr. Parvez A. Shahid
 Mr. Abdulla Khalil Mohd Samea Al Mutawa
 Mr. Khalid Mana Saeed Ahmed Al Otaiba
Sponsors’ profile
The Abu Dhabi Group
The Abu Dhabi Group (“the Group”) is one of the leading business groups
in the United Arab Emirates and is one of the largest foreign investor groups
in Pakistan;
Under the leadership of its Chairman His Highness Sheikh Nahayan
Mabarak Al-Nahayan, the Group has grown to include diversified business
interests ranging from banking and financial services, hospitality,
construction, telecommunication services, real estate development and
management, manufacturing and various other interests in industries such
as sugar and healthcare;
Over the past 10 years, the ADG has invested over USD 2.0 billion in
Pakistan;
In recognition of H.H. Sheikh Nahayan Mabarak Al Nahayan’s contribution
to Pakistan, he was awarded with the Hilal-e-Pakistan, the highest civil
award in the country in May 2005.
Pakistan Macroeconomic Highlights
Population in million
Population of 170m growing at 2% rate annually
Young population (median age of 20.9 years) with
increasing communication, media and infotainment
needs 167 170
174
164
Fast growing economy (over 8% GDP CAGR between 155 158 161
153
2007 and 2012) fuelled by a sustained reform program
and increasing FDI (US$5.1 billion in 2007)
Per Capita Income of Pakistan at end of 2010 is
estimated to be $1,050 at market exchange rates and is
expected to be $1,190 by end of 2012 2005 2006 2007 2008 2009 2010E 2011E 2012E
2007/08 FDI in telecom at $1.44 billion; 28% of total FDI
Telecom direct contribution to GDP is 2%; Indirect
contribution to other sectors increases share 5%
.

Income per capita (USD at market exchange


rates)

1,120 1,190
1,042 1,046 1,050
836 921
733

2005 2006 2007E 2008E 2009E 2010E 2011E 2012E


Industry overview
LL & WLL Telephony
Deregulation began in Jan 2003 - wireless local
loop (WLL), fixed local loop (LL) and long-
distance-international (LDI) licences
Etisalat (in cooperation with Dubai Islamic Bank)
acquired a 26% stake with management control Subscribers & Penetration (% )
in PTCL in Jun-05 for US$2.6bn
4.1%
Several WLL operators have emerged including 3.5%
3.9% 4.0%
3.6%
Wateen, Worldcall, Great Bear, Burraq Telecom 2.6%
2.9%
6.2m
6.9m 6.7m 6.1m
and Link Direct 4.0m
4.5m
5.5m

Foreign operators have become increasingly


interested
 Orascom acquisition of WOL, Zarco,
Jun-2003 Jun-2004 Jun-2005 Jun-2006 Jun-2007 Jun-2008 Jun-2009
Dancom and DV Com
 QTel acquisition of Burraq Telecom
 Omantel purchase of a controlling stake in
Worldcall
PTCL dominates the fixed line (LL & WLL)
market with 83% market share
Fixed LL/WLL voice market at 6.7 million subs as
at June 2008 only
Fixed LL/WLL voice subscriber base is expected
to grow to 10 million
Current voice LL ARPU of US$11-12 and WLL
ARPU of US$3-4
Industry overview
Cellular Subscribers (m) & Penetration (% )
48.2% 57.4%
The country's cellular operators are Warid, (2004), 38.4% 94.3m
Mobilink (1994), Telenor (2004), U-fone (2001), CMPak 63.0m
78.7m

(1991) and Pakcom (1991)


21.7%
Foreign operators have become increasingly interested in 34.5m
Pakistan 1.6% 3.2%
7.9%
12.7m
 China Mobile’s purchase of 100% stake in Paktel 2.4m 5.0m
(2007) for $460m
Jun-2003 Jun-2004 Jun-2005 Jun-2006 Jun-2007 Jan-2008 Jan-2009
 SingTel’s purchase of a 30% stake in Warid
Telecom (2007) for $758m
1.5 m active GPRS users¹; Market expected to grow at 6-
10% p.a.
Extensive growth with 77% Tehsil coverage and over
21,000 sites Operator market share (Nov`09)
Paktel
Licenses for 3G spectrum have not yet been awarded 7%

Mobilink
Current ARPU $3.2 Warid
32%
19%

Telenor
23% Ufone
19%
Industry overview
Content & Media
Approximately 13.0m TV set owners
 90%+ urban penetration
 75%+ rural penetration
5.2 million are Pay TV subscribers¹
Wholesale market of 600 cable operators and 4,000 loop Internet Subscribers (m) & Penetration (% )
operators¹
2.4%
1.5m active GPRS users² 2.1%
Last year’s media spend estimated at $285m 1.5%
1.3% 1.3% 4.0m
1.1% 3.5m
Internet 1.6m
2.0m 2.1m 2.4m

DSL services were introduced in Pakistan in 2002 through


revenue sharing agreements between PTCL and Dancom,
Jun-2003 Jun-2004 Jun-2005 Jun-2006 Jun-2007 Jan-2008
Habib Rafiq International, Micronet and Multinet
Main ISPs are Link Dot Net, Cybernet, Nexlinx, Micronet,
Mobilink, Multinet, BrainTel and PTCL
Wateen was the first operator to offer national WiMAX
services (launched in Dec 2007)
Internet users over 20 million with 4 million Internet
subscribers
Internet subscriber base is expected to grow to 5 million in
medium term and 10 million in long term
Current narrowband internet ARPU of $3-3.5 and
Broadband ARPU of $15-20

¹ Asia Pacific Pay-TV & Broadband Market 2007 Report, PEMRA 2006
² Internal market intelligence
Thank you