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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

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Broadband Proliferation in Pakistan through Universal Service Fund Zeshan Haider

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  1. 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 zhaider@moitt.gov.pk

  2. Contents of Presentation Case Study of Universal Service Fund USF Broadband Programmes Special Projects Challenges & Solutions ITU-Pakistan Collaboration ITU-Pakistan Collaboration on Broadband

  3. Why Invest in Broadband Infrastructure? Transformation of way of lives Facilitation of e-services Socio-economic benefits Achievement of Millennium Development Goals (MDGs)

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

  5. 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

  6. 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.

  7. 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.

  8. USF Programs

  9. USF Programs SPECIAL PROJECTS

  10. Broadband for un-served urban areas

  11. 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

  12. 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

  13. 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

  14. Impact of Subsidy on Broadband One-time USF subsidy

  15. 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

  16. Broadband Program – Achievements • So far 7 Projects Launched, • 284 Towns (70% Towns, 17mil population) covered.

  17. 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

  18. Broadband PROGRAM STATUS

  19. Advertised Broadband Projects • Under these advertised projects a total of 668 EBCs and 145 CBCs will be established

  20. Future Broadband projects

  21. 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)

  22. Broadband Subscribers in Pakistan

  23. Special Projects - Scope

  24. Rural Areas Broadband - Telecenters ~ 56,000 small villages in Pakistan.

  25. 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

  26. Challenges

  27. Challenges/Hurdles • High taxes coupled with high capital/operational expenses • Security Situation • Natural Calamities • Power crisis; • Access problems • O&M • Inflation

  28. 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

  29. 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

  30. 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

  31. ITU – Pakistan Collaboration for Broadband

  32. 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

  33. 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)

  34. 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

  35. 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

  36. Thank you

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