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Pakistan Telecom and IT updates

Policy Directive for Auction of 3G / 4G Spectrum in AJK and GB Issued

Azad Jammu and Kashmir (AJ&K) and Gilgit-Baltistan Council on Wednesday approved policy directives for next generation mobile services (NGMS) 3G/4G in AJ&K and G.B, we have confirmed officially.

After the approval of AJ&K/G.B council, the policy directive was issued to Pakistan Telecommunication Authority (PTA) for the NGMS spectrum auction.

Transparent, competitive auction will be conducted for spectrum allocation for deployment of next generation mobile networks.

The allocation will be technology neutral and usable for technologies standardized for 3G and advanced generation(s) of mobile services.

As finalized by the PTA & Ministry of Information Technology and Telecommunication in collaboration with the Frequency Allocation Board, the following frequency blocks for provision of 3G/4G spectrum auction in AJ&KlGB are suggested:-

For Auction:

3G: Three blocks of 10 MHz each in 2100 MHz (Block A).
1920-1930/2110-2120 MHz (Block A)
1930-1940/2120-2130 MHz (Block B)
1940- 1950/2130-2140 MHz (Block C)
4G: One block of 10MHz in 1800 MHz band
1775-1785/1870-1880 MHZ

Earmarked for SCO:

3G: One block of 10MHz in 2100 MHz band: 1950-1960/2140-2150 MHz
4G: One block of 10MHz in 1800 MHz band: 1759.1-1769.1/1854.1-1864.1 MHz
 
KUALA LUMPUR: Veon Ltd. is in advanced talks to sell wireless towers in Pakistan to a unit of Axiata Group Bhd., the biggest Malaysian mobile operator.

Axiata’s infrastructure arm, Edotco Group Sdn Bhd., plans to announce an agreement as soon as this week that could value the towers at about $1 billion, people familiar with the matter said.

The purchase of about 13,000 towers will make Edotco the biggest independent telecommunications tower operator in the South Asian nation, one of the people said, asking not to be identified because the information is private.

Veon confirmed the talks about the subsidiary, known as Deodar Ltd., in a statement Tuesday after Bloomberg reported on the plans.

The discussions may not result in a transaction, according to the company’s statement.

Axiata has been pursuing overseas deals as it seeks to reduce reliance on a home market where it’s losing subscribers and average customer revenue is flattening.

Any deal will add to the $3.1 billion of acquisitions announced in Pakistan over the past 12 months, according to data compiled by Bloomberg.

“The deal implies a price of about $70,000 per tower versus more than $100,000 in Italy, but that’s a great price for Pakistan where average revenue per user is substantially lower,” said Alexander Vengranovich, analyst at Otkritie Capital in Moscow.

The Pakistan unit may use the proceeds to buy wireless spectrum, reduce debt and pay a dividend to its parent company, he saiD.

Axiata wants to increase its phone towers in Southeast Asia and South Asia to 26,000 from 16,000 within three years, Chief Executive Officer Jamaludin Ibrahim said in an interview last year.

The acquisition would help Kuala Lumpur-based Axiata meet a goal of expanding its overseas infrastructure operations ahead of an eventual listing of the business.

“The tower business is an important segment for the telecommunication industry and Edotco can do a lot of business from Pakistan to other neighboring countries,” Danny Wong Teck Meng, chief executive officer of fund manager Areca Capital Sdn. Bhd, said Wednesday by phone.

“For Axiata, the deal is also good as it will allow it to unlock value once Edotco is listed.”

Shares of Axiata have fallen about 12 percent over the past year, giving the company a market value of $10.2 billion. A representative for Edotco said he couldn’t immediately comment.

Axiata said earlier this month that Edotco had completed the $89 million purchase of Tanzanite Tower Pvt, which owns about 700 phone towers in Pakistan.

Veon, the wireless carrier formerly known as VimpelCom Ltd., said earlier this month it was in advanced talks to sell its Pakistan tower business to an unnamed buyer.

A deal could come as soon as the second half of this year, Veon Chief Executive Officer Jean-Yves Charlier said in an August interview.

The company agreed in 2015 to sell 7,300 phone towers in Italy for 693 million euros ($833 million) to Spain’s Abertis Infraestructuras SA, and said it planned to sell towers in other markets to cut debt and focus on services instead of hardware maintenance. - Bloomberg
 
LAHORE: China Mobile Pakistan (CMP) has promised that it will reinvest its domestic earnings in Pakistan’s cellular market through its subsidiary Zong.

A statement issued by the company on Thursday said CMP, itself a subsidiary of telecoms giant China Mobile Communications Corporation, would divert its focus towards Pakistan’s digital infrastructure under the auspices of the infrastructure-centred Belt and Road initiative.

The company boasted about the significant investment already made by it in expanding Pakistan’s communications infrastructure.

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“Any revenue earned from the people of Pakistan will be spent back on the people of Pakistan to give them a stable, advanced and reliable (communications) network,” CMP spokesperson and Corporate Affairs and Strategy Director Maham Dard stated.

“Our first goal is to help the Pakistani people adopt a digital lifestyle. We will continue to reinvest in Pakistan, on the Pakistani people.”

According to the statement, Zong 4G will further scale up its network by increasing the number of its 3G/4G sites to around 10,500 by the end of current year. CMP has already invested $3 billion in establishing its internet services in Pakistan.
 
4G finally arrives in Gilgit-Baltistan


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USF Approves Projects of Broadband for Sustainable Development Worth Rs 1.8 Billion


The Universal Service Fund Company (USF) Board of Directors on Monday awarded three projects of broadband for sustainable development (BSD) worth over Rs. 1.8 billion.

The 55th meeting of the USF Board of Directors met with Minister of State for Information Technology and Telecom Anusha Rahman in which an overview of the main efforts and development of telecommunication services in unserved and underserved areas across the country were taken in to the view.

The Board emphasized on the timely execution of establishment of computer labs and provision of computer teachers in 226 government girls educational institutions of Islamabad Capital Territory and the special project of empowerment of artisans through E-commerce. The computer labs project had been announced by the government several times during the past few years but the billions of rupees never actually made their way to the schools.

Acting Chief Executive Officer (CEO) Universal Service Fund (USF) Haris M. Chaudhry told that the USF Board of Directors, on the recommendation of the USF, after transparent bidding process awarded a contract pertaining to USF Broadband for sustainable development (BSD) Project Mohmand Lot encompassing Bajaur Agency, Mohmand Agency and Malakand to Telenor Pakistan (Pvt) Limited with a total cost of Rs 850 million.

This Project benefits an unserved population of about 1,599,500, covering 684 unserved Mauzas and an unserved area of 3,646 sq kms.

He further said that another contract worth Rs. 550 million of USF Broadband for Sustainable Development (BSD) project, DI Khan Lot encompassing DI Khan, FR D.I. Khan and Tank was also awarded to Telenor Pakistan (Pvt) Limited.

This project benefits an unserved population of about 693,000, covering 335 unserved mauzas and an unserved area of 9,010 sq. kms. It was also agreed that similar projects for North Waziristan agency will soon be brought to the Board after completion of technical surveys and appropriate planning.

He further said that a remaining part of the Pashin, Qilat and Quetta has been approved with funding of Rs. 350 million.

Anusha Rehman directed USF authorities during the meeting to work out a proposal for establishment of 6 computer labs for physically handicapped and visually impaired children enrolled in special education centres being run under CADD.
 
USF Approves Projects of Broadband for Sustainable Development Worth Rs 1.8 Billion


The Universal Service Fund Company (USF) Board of Directors on Monday awarded three projects of broadband for sustainable development (BSD) worth over Rs. 1.8 billion.

The 55th meeting of the USF Board of Directors met with Minister of State for Information Technology and Telecom Anusha Rahman in which an overview of the main efforts and development of telecommunication services in unserved and underserved areas across the country were taken in to the view.

The Board emphasized on the timely execution of establishment of computer labs and provision of computer teachers in 226 government girls educational institutions of Islamabad Capital Territory and the special project of empowerment of artisans through E-commerce. The computer labs project had been announced by the government several times during the past few years but the billions of rupees never actually made their way to the schools.

Acting Chief Executive Officer (CEO) Universal Service Fund (USF) Haris M. Chaudhry told that the USF Board of Directors, on the recommendation of the USF, after transparent bidding process awarded a contract pertaining to USF Broadband for sustainable development (BSD) Project Mohmand Lot encompassing Bajaur Agency, Mohmand Agency and Malakand to Telenor Pakistan (Pvt) Limited with a total cost of Rs 850 million.

This Project benefits an unserved population of about 1,599,500, covering 684 unserved Mauzas and an unserved area of 3,646 sq kms.

He further said that another contract worth Rs. 550 million of USF Broadband for Sustainable Development (BSD) project, DI Khan Lot encompassing DI Khan, FR D.I. Khan and Tank was also awarded to Telenor Pakistan (Pvt) Limited.

This project benefits an unserved population of about 693,000, covering 335 unserved mauzas and an unserved area of 9,010 sq. kms. It was also agreed that similar projects for North Waziristan agency will soon be brought to the Board after completion of technical surveys and appropriate planning.

He further said that a remaining part of the Pashin, Qilat and Quetta has been approved with funding of Rs. 350 million.

Anusha Rehman directed USF authorities during the meeting to work out a proposal for establishment of 6 computer labs for physically handicapped and visually impaired children enrolled in special education centres being run under CADD.


Ia good thread
 
Pakistan IT export reaches US$ 2.9 bn

ISLAMABAD: Due to Government Incentives to IT and Information Technology Enabled Services (ITeS) industry Pakistan’s IT exports have grown to an estimated $2.9 billion which includes Pakistani freelancers estimated to be earning more than $300 million annually.

While talking to APP Managing Director Pakistan Software Export Board (PSEB) Iftekhar Shah said, Government Incentives to the IT & ITeS industry include income tax exemption on IT exports till June 2019, 100% foreign ownership, 100% repatriation of capital and dividends, 3-year tax exemption for IT startups, and tax holiday for venture capital funds till June 2024.

He said, Pakistani domestic market for IT & IT Products and services is also strong, estimated at over $ 500 million in annual revenue, and growing rapidly. Total annual revenue of Pakistan’s IT Industry is nearing $3.5 billion. Pakistan’s IT industry has demonstrated positive growth trends for the last four ten with 100% growth in export earnings, he added.

He told APP that, Several long term projects are in the pipeline for the benefit of the IT industry which aim to focus on infrastructure development, fostering innovation/entrepreneurship, adoption of ICT in public sector as well as domestic demand generation for the ICT products/services.
Incentives, programs and projects geared towards IT industry growth are closely monitored and regularly reviewed to ensure that maximum benefits accrue to the growth of the local ICT Industry, he added. He mention that, PSEB also organizes trade delegations comprising of Pakistani IT companies in order to enhance collaboration and cooperation between Pakistan’s IT sector and relevant entities in countries important to Pakistan’s IT sector.

Ministry of Information Technology & Telecom, through PSEB under the leadership of Minister of Information Technology and Telecom, Anusha Rehman, is making all possible efforts to facilitate IT companies in order to multiply the exports of IT products and services from Pakistan and to attract FDI towards the local IT Industry.

The Minister has constituted a multi-stakeholder High Level Executive Council Forum (ECF) to work on how to increase IT & ITES exports as part of the government economic growth agenda and has stressed upon PSEB authorities to complete all running projects within stipulated time period with complete efficacy to boost IT exports.

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Telenor’s new building is in Gulberg Express, Islamabad with an all new state-of-the-art building cost 70 million dollars. Spanning an area over 150 kanals, it will house over 1100 employees.

Some of the things employees can look forward to are a gym, pool, mosque, day care center for employees with children and other amenities you’d usually associate with a Silicon Valley firm.

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ISLAMABAD: Pakistan has seen a dramatic increase in mobile broadband penetration over the past five years as mobile broadband subscribers have reached 50 million with a teledensity of 24.48 per cent.

According to official data mobile broadband market penetration has increased at a rate of below 1 per cent in 2012 to 24 per cent in 2017.

The 3G/4G subscribers have reached 47 million out of 143 million mobile users in the country, whereas teledensity for 3G/4G subscribers has reached 23.33 percent and the teledensity of cellular subscribers has reached 70.25 per cent.

The Ufone 3G registered 5.5 million users, Telenor 3G users reached 10.5 million, Mobilink 3G users reached 14.06 million and Zong 3G users reached 9 million as of November 2017. Meanwhile, Telenor 4G reached 1.3 million users, Mobilink 4G reached 1.7 million and Zong 4G reached 4.8 million users as of November 2017.

However, cellular subscribers have reached 143 million with a teledensity of 70.83 per cent, Pakistan Telecommunication Authority (PTA) revealed.

Data revealed that reducing customs duties on smartphones in 2017-18 had a direct impact on smartphone demand and mobile broadband usage.

Owing to this boom in the smartphone market and to attract foreign brands, the government had reduced withholding tax on mobile phones from 14 per cent. Government has reduced taxes on certain kind of smartphones, the budget document claimed. According to details, one category – for which import duty was Rs 1,000 – has been reduced to Rs 650.

The government was charging an import duty of Rs 300 on feature phones, Rs 650 on low-end smartphones, previously set at Rs 1,000, and Rs 1,500 on high-end smartphones.

With this tax reduction on mid-range and low-end phones, the market is likely to see a price reduction, as most of the smartphone companies in Pakistan adjust their prices according to taxes and import duties.

An official of Pakistan Telecommunication Authority (PTA) said that the step has been taken to increase the uptake of smartphones in the country.
 
Still a long way to go. Far behind india and Bangladesh.
 
Pakistan telecom industry is expected to receive latest and modern submarine cable system which will have two landing routes in Karachi and Gwadar. The submarine cable will stretch across Europe and Africa.

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Army’s telecom wing allowed 3G, 4G services trial run in GB

ISLAMABAD: A court has allowed the Special Communications Organisation (SCO) to operate 3G and 4G mobile services on a trial basis in Gilgit-Baltistan (GB) and stayed the telecom regulatory body’s decision to allow other private operators to launch the service in the mountainous region.

A two-judge bench of the Gilgit-Baltistan Chief Court (GBCC) comprising Justice Haq Nawaz and Justice Muhammad Umar admitted a petition filed by the SCO, the telecommunication wing of the army, for hearing and issued notices to the respondents to submit their comments within a month.

The petition, a copy of which is available with Dawn, was filed on April 18 under Article 71 of the GB Empowerment and Self-Governance Order 2009, challenging the Pakistan Telecommunication Authority’s (PTA) decision of issuing licences to cellular networks for launching 3G and 4G spectrum in the mountainous region.

The petitioner through its counsel Adnan Hussain made the Gilgit-Baltistan Council, PTA, Frequency Allocation Board and the GB government as respondents.

Zong had announced to launch 3G and 4G services in GB from May 5 after getting the licence. The SCO has a monopoly over operating communication service in GB and Azad and Jammu Kashmir (AJK).

The court issued ad-interim injunction, suspended the operation of the letter issued by the PTA on Feb 23 and sought comments from the respondents within a month.

After receiving the comments, the bench will initiate hearing of the case, the order said.

The petitioner contended that the licences issued to other private operators for launching 3G and 4G service was “unlawful authority”. The auction of 3G and 4G spectrum in GB was an attempt by the PTA to restrain the ongoing services on a trial basis being delivered by the petitioner, it maintained.

The bench held that the petitioner’s “apprehensions of an irreparable loss seem to be well founded and turning the prayed injunction down, that too, at the very initial stage will end up making the communication system, which is a brainchild of the petitioner, a Frankenstein for it”.

The court directed the parties to maintain the status quo till the final disposal of the petition.There have been complaints from the users about the SCO’s poor quality and speed of mobile service in the region. Residents have been demanding the telecom authorities allow other cellular firms to operate in the region so that they could exercise their fundamental right to choice of service and ensure quality cellular service in a competitive atmosphere.

The SCO claims that it is facing an annual loss of Rs1 billion due to its limited powers of providing telecom services in AJK and GB only, despite the fact that the government meets all financial needs of the SCO to ensure its smooth operation.

“The SCO takes 80 per cent of the IT ministry’s budget every fiscal year,” said an official from the ministry.

The SCO has been seeking a free licence, tax exemption on its income, assets, turnover and sales and custom duties on imports and exports as well as continued funding from the government.

The SCO was established in 1976 to develop, operate and maintain telecommunications services in AJK and GB. The organisation provides telecom services at 141 locations in AJK and 85 in GB.
 

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