R&D Funds of Telecom Operators Reach Rs. 40 billion

[AstanoshKhan]

R&D Funds of Telecom Operators Reach Rs. 40 billion

By Saleh Sikandar · Wednesday, Jan 19, 2011

The telecom operators’ funds for various research and developments (R&D) projects and schemes have reached Rs. 40 billion recently in the Ministry of Information Technology and Telecommunication, reported Daily Times citing unnamed sources.

The funds are utilized by Universal Service Funds (USF) and National ICT R&D funds for establishing basic infrastructure and service promotion of telephony and Internet services in rural under-served and un-served areas of the country.

Paper said that operators’ contribution for USF-run projects have increased to Rs. 38 billion at the rate of 1.5 percent share of their yearly gross revenue whereas an amount of over Rs. 2 billion has been submitted in the ministry for ICT R&D projects at 0.5 percent of annual earnings.

USF has awarded Rs. 15.5 billion contract in different provinces to various telecom operators so far – however development work has stopped since last March 2010 on the directives of then minister-Incharge MoITT, Sardar Latif Khan Khosa.

The two organizations were dissolved by the ministry last year. Whereas, the ministry also had to remain nonfunctional due to absence of minister and secretary.

In such a chaotic situation, the telecom operators have asked the federal government to utilize the funds properly or they will stop paying their contribution to these organizations otherwise.

The operators made this demand to the federal government because they get penalized by Pakistan Telecommunication Authority if they don’t pay their contribution to these organizations on time.

On the other hand, they had serious reservations over the issues of the MoITT. The minister and secretary have now been deputed recently in the ministry.

 

[AstanoshKhan]

... and I wonder when are they going to issue licenses to deploy 3G networks whereas rest of the world is about to start using 4G. And we are still dreaming about 3G, someone wake me up once they do.

The operators has put the initiative of 3G deployment about 2-years ago but due to heavy licensing fees by the present govt, they have been kept astray, showing the incompetent morons involve in the ministry of IT and telecom.

 

[AstanoshKhan]

Cellular Companies Urge not to Pay USF and R&D Fund

By Saleh Sikandar · Sunday, Dec 19, 2010

Development projects by USF, worth more than Rs. 15 billion, came to a halt about nine months ago, resulting in non-utilization of Universal Service Fund (USF), reported ‘Dawn’.

As a result, telecommunication companies have threatened to stop making mandatory contributions in the form of access promotion charges to the USF which has now swelled to over Rs. 35 billion.

At least four leading companies are on record as having asked the government to stop collecting USF contributions for subsidizing telecom access in less developed areas under international obligations that envisage providing telecom and IT facilities to all citizens as a basic right.

“We propose that the further collection of USF and R&D contribution may kindly be capped till the current funds are efficiently consumed,” said a joint letter sent to the ministry of information technology and telecom by the four companies Mobilink, Telenor, Warid and China Mobile."

Dawn further reports that the USF has not awarded any contract for the launch of rural telecom services, broadband access, laying of optic fibre cables and multi-purpose community telecentres in more than 6,000 villages since March this year.

Similar projects in about 3,000 villages could not be completed or put into operation because the USF board of directors has failed to hold its meeting since March. In many cases, the bidding process has been completed but contracts could not be signed because of a legal authorization that the board of directors have to issue.

Interestingly, the USF has not been able to get its annual budget approved either by the government or its board of directors and has exhausted its reserve money while paying the staff salaries. The employees are unlikely to get salaries next month.

The USF is run on an ad hoc basis by a chief executive officer whose contract expired a few months ago. Its sister organization the IT Research and Development is without a head for almost a year.

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... and that moron has become the Governor of Punjab.

Somebody bring me a glass of water please, I need to get drowned.

 

[Hyde]

Please always provide source in the first post whenever you create a new thread.

Thanks

 

[ajtr]

Daily Times - Leading News Resource of Pakistan

 

[All-Green]

... and I wonder when are they going to issue licenses to deploy 3G networks whereas rest of the world is about to start using 4G. And we are still dreaming about 3G, someone wake me up once they do.

The operators has put the initiative of 3G deployment about 2-years ago but due to heavy licensing fees by the present govt, they have been kept astray, showing the incompetent morons involve in the ministry of IT and telecom.

Salaams

Due to tremendous increase in operating cost resulting from power outages, increase in diesel prices and devaluation of Pak Rupee; all the operators are suffering terribly.

The monthly cost of retaining one GSM site has literally increased by more than 1500 dollars due to extended running on diesel generators instead of commercial power.
Keeping in mind that there are literally 5000-8000 sites per operator in Pakistan this translates into a huge increase of 7 to 13 million USD per month.

The revenue per user is very low due to stiff competition on prices and more importantly it is all in Pakistan Rupees.
Pakistan has one of the cheapest call rates in the world.
On the other hand the equipment and majority of services are contracted in USD; this resulted in tremendous losses when the PKR nosedived from 60 to 86 per USD and has very greatly impacted the Operators who have a lot of debt to clear which was all in USD.

There is no healthy business case in paying huge license fees and buying a lot of 3G equipment when the market is not conducive.
Maybe some operator with a lot of reserve cash can take the risk but market is not stable nowadays.
Government needs to ensure that the energy sector is back on track and booming, otherwise all industries shall continue to suffer.