Pakistan Telecom and IT updates

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Country produce a 1.21 million cell phones in Jan-Feb 2021.

With a significant drop in cell phone smuggling, Pakistan’s mobile phone assembly segment grew by leaps and bounds and produced 1.21 million mobile phones in just two months (January and February) of 2021.
The output was significantly higher than just 119,639 mobile phones assembled in the entire 2019.

According to a statement issued by the Pakistan Telecommunication Authority (PTA) on Wednesday, the implementation of Device Identification, Registration and Blocking System (DIRBS) in 2019 led to a notable increase in legal imports of mobile devices.

PTA highlighted that it recently issued the Mobile Device Manufacturing (MDM) Regulations following which a large number of mobile device manufacturing applications started flowing in.

 

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Ministry asked to finalise 3G, 4G auction


Our Correspondent
March 09, 2021

Umar stated that the G-B power sector should have a regional grid of its own as a connection to the grid posed a challenge due to the distance involved.



ISLAMABAD: Minister for Planning, Development and Special Initiatives Asad Umar has directed the Ministry of Information Technology and Pakistan Telecommunication Authority (PTA) to finalise the auction of 3G and 4G licences in Gilgit-Baltistan (G-B) on priority, as the importance of IT is far greater for remote areas than the large cities of Pakistan.

“Generating economic activities in remote areas will only be possible through strong IT infrastructure in the future,” he said while chairing a progress review meeting on G-B development plan on Monday. Umar added that one of the underlying principles is to create maximum employment opportunities for the youth and people of G-B.

G-B Additional Chief Secretary briefed the minister on the potential projects in the public sector, non-PSDP (Public Sector Development Programme) initiatives, as well as in the Public-Private Partnership mode. The various priority sectors such as clean energy and hydropower, health, education and skill development, tourism, private sector development, agriculture, women development, social welfare and youth were also discussed in the meeting.

The meeting was informed that all provincial departments are in contact with relevant federal ministries/divisions and PC-Is of the shortlisted schemes are being prepared by the respective departments.

The G-B government placed special emphasis on clean energy to mitigate severe power crisis in the area, other priority sectors included tourism, gems and minerals, agricultural products, roads and communications and information technology.

Umar stated that the G-B power sector should have a regional grid of its own as a connection to the grid posed a challenge due to the distance involved. He said that the aim in G-B development package on the energy side is not only to produce energy but also to build the right institutional and regulatory framework and generation transmission distribution capacity as well.

Umar directed PPP Authority to assist G-B government in strengthening G-B PPP Unit and help in the identification of private sector partners. He called on the Board of Investment (BOI) to hold roadshows in two or three different cities in Pakistan where the federal and provincial governments could jointly market available public-private opportunities to potential investors.

Umar directed the planning ministry to devise a strategy for training and capacity building of G-B officers and directed all the ministries and divisions to complete the feasibility and submits the PC-Is to the Central Development Working Party (CDWP) so that activities on ground could start as early as possible.


Published in The Express Tribune, March 9th, 2021.

 

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The government on Thursday announced that it would reduce taxes on the telecom sector in the upcoming budget in order to give a boost to the information technology industry.

On recommendations of the Ministry of IT and Telecommunication, the federal cabinet has approved the grant of industry status to the telecom sector and a gradual reduction in heavy taxes on the sector and mobile phone users.

“This is a major achievement which will directly benefit not only mobile phone users but will also help spread the goal of Digital Pakistan (connectivity) to remote areas,” said Federal Minister for IT and Telecommunication Syed Aminul Haq while speaking at a press conference.

The minister revealed that advance income tax on mobile phone users would be slashed from 12.5% to 10% in next financial year 2021-22 and to 8% in 2022-23. Similarly, the federal excise duty on telecom services will be cut from 17% to 16%.

The minister disclosed that the fee of Rs250 on the issuance of a new SIM was being abolished as the cabinet had approved the introduction of a simple and easy tax system for the telecom sector and exemption from all withholding taxes.

He pointed out that the cabinet had endorsed a reduction in the tax on telecom services from 8% to 3% for all telecom companies with a Pakistan Telecommunication Authority (PTA) licence.

The cabinet has also approved reduction in customs duty and regulatory duty on the import of telecom equipment as well as on raw material for the optic fibre cable manufacturing industry.


It has issued instructions to the Federal Board of Revenue (FBR) to reduce taxes from 20% and 7% to 5% and 3% respectively.

Talking about the performance of IT ministry and its attached organisations, Haq said credit for getting approval for the revolutionary initiative - the Right of Way policy - from all forums went to the IT ministry.
The policy sets a fee structure for working in the required areas. Similarly, telecom facilities will be considered as “critical infrastructure” and no obstruction or unnecessary problems will be allowed to stand in their way.

Other important issues like a common service corridor, security of telecom infrastructure and safety measures based on health principles have also been included in the Right of Way policy, which will be binding on all the agencies and administrations concerned, and it is a kind of one-window operation.

The minister said the Universal Service Fund (USF) of the IT ministry had played a major role in the outstanding performance, under which 32 different projects worth about Rs22 billion were launched during first 31 months of the current government.

In 10,132 villages in 50 districts of unserved and underserved areas, broadband services were being provided to facilitate about 4 million people, he said.

Haq pointed out that the Pakistan Software Export Board (PSEB) had received 40% additional export remittances in the first six months of current financial year and by the end of the year, the remittances would cross the billion-dollar target.

Under the PSEB, dozens of projects under “Tech DestiNation Pakistan” have been launched to promote the IT industry. The aim is to provide facilities and training opportunities for IT professionals and IT companies as well as to attract domestic and foreign investors.

Work is also continuing on building a network of software technology parks across the country, under which 40 parks have been set up in Swat, Bannu, Quetta, Faisalabad, Karachi and Sukkur under public-private partnership.

Technology parks in Gilgit and Hyderabad were making millions of dollars within a few months of their establishment, he said.

Similarly, PC-1 has been submitted to provide rental subsidy to 25 software technology parks in small areas. “Foundation stone for setting up IT parks in Karachi and Islamabad at a total cost of Rs 44 billion will be laid soon,” the minister added.

He said the National IT Board (NITB) had provided all technical facilities and support for the structure of National Command and Operation Centre (NCOC) during the Covid-19 outbreak and without its support, it would have been almost impossible to establish it in the short term.

NITB has developed 35 useful mobile applications and web portals for providing public services at fingertips under the Digital Pakistan vision, which included Pak Nighaban, Covid-19 information platform, resource management system for the National Disaster Management Authority (NDMA) and a real-time dashboard.

He said under IGNITE, incubation centres had been set up in five major cities where 691 start-ups had registered themselves. Similarly, plans to set up more incubation centres in Faisalabad, Hyderabad, Kamra, Mardan and other cities are in final stages.

“More than 1.7 million people have so far enrolled through the online training platform ‘Digi Skills’,” said the minister.

He praised the performance of Special Communication Organisation (SCO) under the IT ministry in Gilgit-Baltistan and Azad Kashmir. SCO revenue in the two regions increased 40% to Rs5.5 billion in 2019-20 compared to the previous year.

The minister said the GSM network in Gilgit-Baltistan was expanded to 75% under the SCO in the past two years, for which 350 mobile towers were installed to upgrade from 2G to 4G network, while 200 more towers were being installed in the current year.

 

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Inaugurated Airlink Smart phone manufacturing facility in Lahore. The largest importer of phones is all set to become one of the largest manufacturers of smartphones with 6 million units/annum capacity. Testament to the success of DIRBS solution & Mobile Manufacturing policy.


Mar 20, 2021

 

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4G broadband services to be launched in AJK, GB on 23rd


Kalbe Ali
March 21, 2021

The government is set to launch 4G broadband services in Gilgit-Baltistan and Azad Jammu and Kashmir and an announcement to this effect is expected to be made on March 23.


ISLAMABAD: The government is set to launch 4G broadband services in Gilgit-Baltistan and Azad Jammu and Kashmir and an announcement to this effect is expected to be made on March 23.

Sources in the ministry of information technology said the government had decided to open up “digital roads” in GB and AJK and the auction proceeds for new spectrum would be finalised by the middle of May.

“The auction of 4G licences will be held before June 30 and it will not only bring high-speed internet to GB and AJK but also the benefits of higher revenues for their governments,” the sources said.

They confirmed that recently Prime Minister Imran Khan was given a briefing by the IT ministry and the Pakistan Telecommunication Authority (PTA) that was also attended by GB Chief Minister Khalid Khurshid and senior officials of the AJK government and the GB secretariat.

“The meeting was informed that traditional restrictions related to the security have been relaxed and high-speed internet services will be provided to almost all areas of GB and AJK, expectedly before the end of this year,” the sources added.

The meeting was informed by the PTA that the UK-based consulting firm Frontier Economics Ltd was working on the parameters and mode of the spectrum auction of 1,800 MHz and 2,100 MHz bands across the country.

“The same firm has been tasked to determine the base price, policy and other requirements related to auction of 4G licences in GB and AJK,” the sources said.

Meanwhile, a senior PTA official confirmed that the basic roadmap for the two auctions will be finalised by the middle of May.

“There will be one auction for new spectrum for the whole country, and another for GB and AJK,” he said.

The auction of licence for AJK and GB will be at much lower price compared to the spectrum auction for the whole of Pakistan as significantly higher amount of investment was required in those areas, the official added.

“Besides, the proceeds from auction of spectrum will be deposited in the National Consolidated Fund, whereas there is a different mechanism to give the share of proceeds to GB and Azad Jammu and Kashmir,” he said.

Apart from the share in the auction proceeds, the revenues of AJK and GB too will increase through 19.5 per cent general sales tax (GST) on services levied on both telephony and the internet usage.

Currently, only Telenor is providing a limited range of 4G internet service in Gilgit city and that too out of its additional capacity.

The bulk of telephony and internet services in Gilgit-Baltistan and AJK are being handled by the state-run Special Communications Organisation, and the upcoming license auctions will bring in fresh competition in telephony and digitisation.

Published in Dawn, March 21st, 2021

 

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Inaugural ceremony of Airlink smart phone production facility



by The Frontier Post

Written by The Frontier Post


LAHORE: A state-of-the-art smart Phone production facility established by Airkink in Lahore was inaugurated by Muhammad Hammad Azhar, Federal Minister of Industries and Production, on 20th March, 2021. The event was attended by many renowned personalities of the sector including Almas Hyder, Chairman EDB & other govt. officials.

Airkink has been in distribution business for the past 10 years working with top smartphone brands like Samsung, iPhone, Huawei, Xiaomi, Alcatel, TCL, Tecno & iTel. The company has been a strong proponent of investment in Pakistan and has established the factory with 100% owned equity with a production capacity of six million units per annum.

This new venture is a state-of-the-art smart phone production facility, being the most advanced mobile phone production facility with a vision of contract manufacturing in the country by meeting all International standards of quality and production. The company has already secured contracts with TECNO, itel and TCL with all regulatory approvals.

Addressing this historic occasion, Mr. Muzzaffar Hayat Piracha CEO Airlink Communication Ltd. expressed his gratitude on the inauguration of the production plant. He said, “I feel honored that Airlink was able to establish this state-of-the-art facility in these unprecedented times which resonates with the Prime Minister’s vision to promote “Made in Pakistan” products that will not only create employment opportunities for people of Pakistan but also reduce the import bill, thus lessening the burden on foreign exchange reserves.

This initiative of the government and its governing authorities will help focusing on employment generation, import substitution and technology transfer. It will also connect Pakistan to the international supply chain and will create export potential.

Hammad Azher while speaking on the occasion congratulated the Airlink team for their efforts and said that in consonance with the vision of the PM, ministry of Industries and Production was committed to bring in investment friendly policies while ensuring ease of doing business in the country.

 

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Mobile Tower installed at Concordia Base Camp in Shigar starts providing cellular and internet services.
Gilgit-Baltistan government has provided support to Special Communication Organisation for the installation of this SCOM Tower to ensure communication facility

 

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April 30, 2021

The auction for mobile telephony spectrum is expected to be held in June.


ISLAMABAD: The auction for mobile telephony spectrum is expected to be held in June, and consultants have expressed optimism that it will be successful because of the potential available in Pakistan.

The briefing was made by a consultant at a meeting of the advisory committee for the release of Next Generation Mobile Services (NGMS) spectrum at the Finance Division on Thursday, chaired by Federal Minister for Finance and Revenue Shaukat Tarin.

The committee approved the recommendations for the sale of the spectrum during the meeting, and the consultant would hold meetings with the stakeholders in the next round, and forward the brief related to the auction process.

In the next step the consultant will forward the ‘information memorandum’ containing the details of procedures related to the auction.

1,800 and 2,100 MHz bands to be put on sale

The meeting was attended by Federal Minister for Science and Technology Senator Shibli Faraz, Federal Minister for IT and Telecommunication Syed Amin ul Haque, adviser to the PM on Commerce Abdul Razak Dawood, federal secretaries of relevant ministries, chairman of the Pakistan Telecommunication Authority (PTA), Executive Director of the Frequency Allocation Board (FAB) and other officers.

The IT minister informed the committee the sale of spectrum was the key to strengthen and expand communication/IT services across the country.

The committee was briefed by the consultant for spectrum auction of 1,800 MHz and 2,100 MHz bands.

The committee was informed that the “Spectrum Auction Pakistan 2020-21” was focused on regulatory consistency for the investors and increases the mobile broadband proliferation that will also have an impact on the overall economic growth of Pakistan.

The consultant expressed the confidence that there was significant potential for the growth of broadband and telephony across Pakistan and the existing four cellular companies were eager to obtain additional spectrum to harness the growth opportunities.

The consultant expressed confidence that the auction would be a success and fetch significant revenues for the government.

The consultant — Frontier Economics — and the PTA signed a contract in January this year for the provision of consultancy services for spectrum auction in Pakistan 2020-21.

Frontier Economics Ltd is one of Europe’s largest independent economic consultancy firms with experts across a range of industries including telecommunication.

PTA Chairman Amir Azeem Bajwa also briefed the committee about the arrangements underway for the sale of available spectrum.

He gave a detailed presentation about the specifications of available spectrum bands and methodology for sale in line with international best practices.

The meeting noted that in-depth analysis would be completed to gauge demand for spectrum and devise a strategy for its pricing and packaging.

While taking stock of the situation, the finance minister directed to expedite the sale process for the available spectrum. He stressed to provide a level playing field so that all operators must have a fair and equal chance in the process.

Mr Tarin also stressed that all the key stakeholders have to ensure maximum participation across the board for successful completion of the sale transaction.

Published in Dawn, April 30th, 2021

 

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PSEB projects Pakistan’s IT exports to cross $5 Billion.

With a vision to achieve $5 billion by 2023, Pakistan’s export remittances from information technology and IT enabled services (ITeS) surged 38.16 percent as compared to last year.

This was the highest growth rate achieved by the IT sector since 2018, when growth rate for the corresponding period was just 13 percent, the statement added.

Lauding the latest exports performance of the industry, Minister for IT and Telecommunication Syed Amin Ul Haque said the initiative for bringing the IT companies from secondary and tertiary cities into mainstream was well underway for ensuring holistic growth.

He said that the Pakistan Software Export Board (PSEB) registration fee for IT and ITeS companies, including call centres and IT start-ups belonging to underserved areas of the country, have been completely waived to boost growth of the IT industry across Pakistan.

Haque has set a target of $5 billion for export remittances through information technology and ITeS during the next three years.

 

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K2 base camp area gets internet access, phone coverage

The Newspaper's Staff Reporter
May 18, 2021

A view of the K2 base camp. — Photo courtesy Imad Broh

ISLAMABAD: The 4G Base Transceiver Station (BTS) recently installed in Gilgit-Baltistan has been made operational to improve telecommunication services at the K2 base camp area, it emerged on Monday.

With the station becoming operational, mobile phone coverage and internet access in the area will prove to be pivotal for mountaineers and trekking groups to stay connected with their families and for assistance in case of any emergency.

It will also help in weather monitoring and promoting adventure tourism, as in line with government’s vision of promoting tourism across the country, the Pakistan Telecommunication Authority (PTA) and telecom operators are focusing on improving telecommunication services in areas full of tourism potential.

The 4G BTS had been installed at K2 base camp area of Concordia. The site has been named as Ali Sadpara in the memory of the late mountaineer. It was inaugurated by the prime minister during his recent visit to Gilgit-Baltistan. The Special Communication Organisation (SCO) made it operational to ensure communication facilities at the base camp of the world’s second tallest peak.

The SCO, established in 1976 to develop, operate and maintain telecom services in Azad Jammu and Kashmir and Gilgit-Baltistan, is a public sector organisation working under the Ministry of Information Technology.

Published in Dawn, May 18th, 2021

 

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PTA issues mobile device manufacturing licenses to 19 companies

Pakistan Telecommunication Authority (PTA) has issued mobile device manufacturing authorisations to 19 foreign and local companies for the production of 2G, 3G and 4G mobile devices locally.

According to PTA, initially valid for next 10 years, the manufacturers may also establish their own new brand under the authorisation, helping promote a ‘Manufactured in Pakistan’ culture.

Mobile devices produced by these manufacturers shall not only be sold in the country but can also be exported to other competitive markets of the region and beyond.

The device manufacturing plants shall be instrumental in providing new job opportunities and low priced handsets for the Pakistani users.

 

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License renewal fee from two CMOs: PTA receives Rs15.82bn against second installment

Tahir Amin 28 May 2021


ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has received Rs 15.82 billion (equivalent of USD 103.17 million) against second installment of license renewal fee from two Cellular Mobile Operators (CMOs); Telenor Pakistan, and Pakistan Mobile Communication Ltd (Jazz).

The amount is being deposited in the Federal Consolidated Fund (FCF) as per practice under the Pakistan Telecom Re-organization Act 1996, said the PTA, in an official handout.

The PTA has so far deposited Rs 135.81 billion (equivalent of USD 862.22 million) with the government, received against 50 percent of total license renewal fee and first installment of the same from three CMOs.

With the amount of second installment received from two CMOs now, the total receipts on this count have become Rs151.63 billion (USD 965.39 million).

The second license renewal fee installment of CMPAK (Zong) for USD 54.086 is due in October 2021.

The government had earlier received $238.6 million (Rs 37.16 billion) as non-tax revenue from China Mobile (CM Pak) cellular company as license renewal fee.

Telenor Pakistan and Jazz had deposited $224.6 million (Rs 35.262 billion) each (half of the amount as per court direction) as their license renewal fee in September 2019.The government had approved renewal of licenses of two mobile operators, i.e. Jazz and Telenor Pakistan at around $450 million each, while the third operator - CM Pak has to pay $470 million.

Due to stay orders given by the Islamabad High Court (IHC), the collection of the renewal fee from two telecom companies had been delayed.

Cellular licenses were issued by the PTA to two new cellular mobile operators i.e. Telenor Pakistan and Warid Telecom on May 26, 2004 for a period of 15 years, under the Mobile Cellular Policy, 2004, on payment of $291 million after auction.

Cellular license of Paktel Limited, now China Mobile Pakistan (Zong), was also renewed by the PTA under the 2004 Policy on October 23, 2004 for a period of 15 years on payment of $291 million.

These licenses were due for renewal on May 25, 2019 and October 22, 2019 respectively. In 2014, the Government of Pakistan renewed the license of Ufone at $291 million.

On August 21, the IHC directed Telenor and Jazz for depositing 50 percent of license renewal fee i.e. around Rs 36 billion each in two weeks as guarantee.

The operators disagreed with the PTA’s decision on fixing license renewal fee.

The operators had also requested for grant of stay order to avoid service disruption in the country after August 21, 2019 - the date fixed by the PTA for renewal of licenses.

The court had directed both the operators to deposit half of the amount, i.e. 50 percent as guarantee till the final decision on the appeal of both cellular operators.

The PTA had rejected mobile operators’ apprehensions relating to the price of license renewal and passed an order, while fixing the fee for license renewal at $39.5 million per MHz for frequency spectrum of 900MHz and $29.5 million per MHz for frequency spectrum of 1800 MHz.

Copyright Business Recorder, 2021

 

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TECHNO mobile Assembled in Pakistan

 

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Federal Government to arrange a $158. 5 Million foreign loan for the establishment of an IT Park in Karachi


A foreign loan of Rs. 26.5 billion ($ 158.5 million) would be arranged by the federal government to develop an IT park in Karachi. The entire cost of the project is Rs. 31.2 billion, with the federal government contributing Rs. 4.72 billion, according to the official project document.


The IT ministry is leading the initiative, which will be finished in six years, to address difficulties in the IT sector such as a shortage of infrastructure, the retention of qualified workers, and increased international competitiveness.

In keeping with the government's Digital Pakistan goal, software technology parks are an important part of the government's goal to promote a knowledge-based economy through value addition, innovation, and technology adoption.