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Pakistan
Opportunities in
Telecommunications
Pakistan Telecommunications
Authority
September 2007
1
Come aboard!
Pakistan: the fastest growing market in Telecommunications
4 AM, Islamabad: Construction site of the 45 storey Grand Hyatt Hotel. The cell phone glows
dimly as the laborer speaks to his wife hundreds of miles away, just before the work starts.
10 AM, Islamabad: The Mercedes of the
Chairman glides on to the ramp
GDP Growt h
overseeing the massive excavation of this
hotel as the concrete pours. His
Blackberry chirps with the e-mail about the 9.00%
paintings being procured for the Grand 8.00%
Ballroom. 7.00%
6.00%
11 AM, a small village, a hundred and fifty
5.00%
kilometers from Lahore: the small girl sits
fascinated watching the pictures on the 4.00%
PC screen installed in the Telecenter, 3.00%
linked on Broadband via WiMAX to a site 2.00%
halfway across the world.
1.00%
4 PM, Karachi: The frenetic construction 0.00%
0 1 2 3 4 5 6 7 8
activity outside the broadband Video
Conferencing Room nearly drowns out the Ye a r s 2 0 0 0 - 2 0 0 8
sound on the presence based conference
linking Karachi, Hong Kong, Dubai and the
software developers at MIT in Boston.
10 PM, Faisalabad: The cut and sew manager of a leading Textile mill, is uploading images of the
new patterns of the curtains to Macy’s as he views the hurricane Dean rip across Jamaica on his
converged platform of TV, WiFi , Telephones and Broadband just installed via optical fibre to the
Gigabit Ethernet WAN of his company.
12 AM, Peshawar: the giggling young teens upload the pictures on Flickr via their EDGE enabled
cell phones and await the responses from their sister in London.
1 AM: Quetta: the sisters never had it better. Speaking to each other across thousands of miles at
less than 6 cents per hour on their Cell phones.
2 AM: Jacobabad: Finally the father reaches his son in Germany. At less than 2.5 cents a minute
a call to Europe (or US) has never been so affordable.
This is just a real life snippet of where Pakistan has come in Telecommunications in a very short
time. It has changed the way communications is perceived and used: business, social,
entertainment, education, governance, security. Its impact on the economy is considerable and
the developments mirror the rapid economic growth of the country in the last few years.
2
1
Pakistan and its economy
Pakistan is the gateway to the energy rich Central Asian States, the financially liquid Gulf States
and the economically advanced Far Eastern tigers. This strategic advantage alone makes
Pakistan a marketplace teeming with possibilities. With three major international airports and
thirty-eight domestic airports, Pakistan is accessible via fifty international airlines. Pakistan's
geographical location, a rapidly expanding transportation and communications infrastructure and
an environment conducive to business makes it an attractive destination for investors.
With a predominantly young population of 160 million, a large portion speaks several Regional
languages and English.
The Central Board of Revenue has facilitated structural reform in tax and tariffs and the State
Bank of Pakistan has invigorated the banking sector into high returns on investment. Pakistan
th
provides relatively strong protection for foreign investors, it ranks 19 worldwide on protecting
investors, according to World Bank report Doing
Business in South Asia 2007. The capital
Stock Exchange Index markets are being modernized, and reforms
have resulted in development of infrastructure in
16000
the stock exchanges of the country.
14000
12000 The Securities and Exchange Commission has
10000 improved the regulatory environment of the
8000 stock exchanges, corporate bond market and
6000 the leasing sector.
4000
2000
Current investment policies have been tailor
made to suit investor needs. A concerted Policy
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 and planning have been consistent, with
liberalization, de-regulation, Privatization, and
Stock Exchange Index facilitation being its foremost cornerstones. With
a consistent growth in GDP and a supportive
Fiscal and Regulatory infrastructure the growth in investments has been quite rapid in the last few
years.
The net impact of this has been a major surge in investments and growth of the telecom sector
2
which constituted the major recipient of FDI in the last two years and is set to maintain this
position in the foreseeable future. It is
relatively easy to set up a company in Investments
Pakistan, be able to freely repatriate
foreign exchange (profits, equity) by 16000
following easy processes. Foreign 14000
companies can own 100% equity with 12000
Million US$
out any need for taking on local 10000
shareholders. 8000
6000
Security concerns and Investment 4000
protection 2000
0
While it is a fact that Pakistan has got 2000- 2001- 2002- 2003- 2004- 2005- 2006-
some bad press related to security 01 02 03 04 05 06 07
issues, but this has been blown out of
FDI (Million $) Foreign Investment (FDI+Public&Private Portfolio)
1 Data in Annex
2 Foreign Direct Investment
3
proportion by the media. Ask the companies who do their own clear headed due diligence and
are consistently investing in Pakistan.
About US$ 2 Billion has been invested yearly in Telecom alone in the last couple of years and
this trend is growing as the networks expand the opportunities grow. In all the reported „turmoil‟
one shop front of one the companies was damaged in a country where there are over 60 Million
3
Cell phones, 6 cell phone companies, 16 LDIs, many LL and WLL operators and investors from
Europe, Middle and Far East.
The Telecom Roadmap
A coherent and forward looking Telecommunications Deregulation policy was created with the
help of the World Bank and comprehensive consultations with all stake holders and announced
on July 13, 2003. This covered Long Distance and International (LDI), Local Loop (LL, including
Wireless Local Loop WLL). The other licenses which are issued are DNOP (Data Network
Operator), ISP and other Value Added Licence (see www.pta.gov.pk for details).
A transparent process for award of licenses and frequencies was adopted which resulted in two
new Cellular companies as well as a number of LDI, WLL and LL licenses being issued. Most
companies rolled out in an environment of perfect competition. A few key enablers made sure
that not only a smooth roll out be effected but also least bureaucratic or regulatory hurdles got in
the way. A light touch Regulatory régime is in effect, which facilitates not only the efficient growth
but also protects the citizens their right to best services.
This was done by enabling elements like CPP (Calling Party Pay), MNP (Mobile Number
Portability), dynamic interconnect, reducing interconnection costs from the SMPs (Significant
Market Powers). In order to enable development in un- and underserved areas, a USF (Universal
Service Fund – www.usf.org.pk) has been formed which is funded by regulatory fees paid by the
Operators as well as injections by the World Bank. This which would support the growth of local
loops and rural voice and broadband communications.
The Regulatory Environment
The PTA (www.pta.gov.pk) has been tasked to set up a fair regulatory regime to promote
investment, encourage competition, protect consumer interest and ensure high quality telecom
services. It does so by adopting a light touch regulatory approach and in doing so tries to ensure
a level playing field for large and small Operators by being even handed and transparent in its
determinations, arbitration and push for Quality of Services.
The major result of this strategy has been a controversy free, transparent, rapid deregulation of
the sector in the last 24 months. Two key principles have guided the process: being supportive to
the new entrants and letting the market forces drive the sector. In order to enable this to happen
the PTA is structured in a way that enables efficient internal and external operations to take place.
The structure to enable a smooth flow to happen is facilitated by various divisions of the PTA.
Law & Regulations
Coordination
Licensing
Enforcement
Industry Development
Finance
Commercial Affairs
Economic Affairs
3
LDI: Long Distance and International; LL: Local Loop; WLL: Wireless Local Loop
4
Regulatory Studies
Frequency Allocation Board
Administration Directorate
The Frequency Allocation Board (FAB) has been integrated into the PTA infrastructure so that the
Licencing process is seamless.
The PTA not only regulates the sector but also creates an environment which facilitates the
induction of new technologies as well as development of direct and indirect industries and
markets.
The State of Telecommunications today
Subsequent to the Policy declaration, the PTA set up a Transparent and open process for license
acquisition and frequency auctions. The
process was completed in a short time Telephone Telephony
Total Voice Line Penetration
and within 3 months of licenses being
issued, the companies started 70,000,000
70%
operations.
60,000,000 60%
50%
In the last two years, a massive 50,000,000
40%
transformation of the Telecom 40,000,000
Users
30%
landscape has taken place in Pakistan.
30,000,000 20%
In this short span of time the cellular
20,000,000 10%
connections have gone from less then
12 Million to over 60 Million. This 10,000,000 2004 2005 2006 2007
coupled with the increase in WLL lines -
Teledensity
has rocketed the Tele-density from 2.2% 2,004 2,005 2,006 2,007
to over 45% in this period. This is of Years
considerable significance for the
Telephone lines (including WLL) Mobile phones Total
development of the market.
As the short story line in the beginning of this document indicated (these are real scenarios) the
segments being addressed will force the penetration to over 100 Million in a few years. What is
significant is the large and diverse user base which will support the launch of Value Added
Services, new operations as well as delivery of total solutions in the market – addressing different
segments at the same time.
GILGIT
AGENCY
In parallel the growth of
Kabul
Broadband has
JAMMU & KASHMIR
increased considerably.
Mardan Noshera
Landi 25 Km
Kotal 50
Km
Abbottabad
79
Km
Peshawar
Km
78
Islamabad
60 Km
41 Km
25 Km
The bandwidth required
Kohat Taxila
59
58 Km
Km
Ahmadi RING-03 Gujar Khan
Banda
58
Km
AN
Km
80
Jhelum
ST
Bannu Kalabagh Khewra
23
by the Cellular and
Kharian
Km
NI
55 Km 35 Km
Gujrat Sialkot
71 Km
HA
Mianwali Khushab Mandi 70 Km
G
Km
Karak Bhauddin
AF
95 Km
0
10
Km
64
45
72 Km
Km
Gujranwala
other operators
Sargodha
Km
4
AN
D. I. Khan G-0
140
79
76 Km
40
Km
Km
RIN
Chiniot Amritsar
33
Lahore
Km
Kandahar Bhakkar
Faisalabad
Fort Sandeman
I Jhang
75 Km
N
additionally is driving
Km
RING-02
25 Km
50
35 Km
95
Km
D Gojra
Layyah T. T. Singh 33 Km
Okara
25
Km Kasur
Chaman
ST
U Sahiwal Km
Pattoki
Raiwind
41
Ferozpur
S Chicha Watni
60 Km
Pakpattan
A
Km
46
DI
Kot Addu
the market. Three new
Km
Quetta Khanewal 80
IN
45 Km
Km
5 Arifwala
52
Qureshi
KI
G-0
65 Km
Chowk Multan Km
RIN Km
Mach Km 36 36
46 42
Burewala
D. G. Km
33 Km Km
44
KHAN Vehari
10
98 Km
Zahidan
6
94 Km
Km
Km
Nationwide optical fibre
60
Sibbi Muzaffar
Mailsi
Garh
Lodhran
20 Km
Fazilpur
Bahawalpur
65
Km
90 Km
Fort Abbas
PA
DMJ
Km
2
11
Rojhan
systems have been
110
Liaquatpur
Km
Km
92
Km
-01
99
Jacobabad
Kand Kot
R ING Rahim Yar Khan
46
Km
Km
84
deployed having an
67 Km
IRAN Shikarpur
Dherki
Km
Khuzdar Km
80
117
Larkana
Sukkur
Km
Km
128
0
aggregated capacity of
12
Amirabad
Dadu
125
Domestic Optical fibre Backbone
Km
100
Km
Nawab Shah
over 4.5 Terabit/s
118
Kalari
Km
Network
90
Km
Jamshoro Khokhropar
Km
Hyderabad
104
Nooriabad
Gawadar
expandable to over 45
Km
Km
104
90
109 Km
Karachi Thatta
ARABIAN SEA
Terabit/s (on 10 GigE).
5
The actual fibre penetration is much
deeper and over 550 locations have
fibre access on the PTCL fibre a
section of which is shown the
diagram. The services now on offer
4
include dark fibre, MPLS , Gigabit
Ethernet and other Value added
services.
These new systems (in addition to the older PTCL
system connect over 100 cities. Metro-rings in over
20 cities are being deployed by different operators CPE
e
on
b
(Islamabad has the first FTTH- (Fibre To The Home
ck
WiMAX CPE
Ba
Access
– system) where corporate and cellular back haul
S
PL
/M
ul
requirements are also being met.
Ha
Central POP
ng
Lo
Metro Ring
Companies like Wateen are creating triple play
opportunities by deploying lanighaul and metro fibre Internet
systems and creating access via WiMAX. Legacy Circuit
Switched Network Virtual
Hub
Others like Niyatel have deployed Pakistan‟s first
5
FTTH network in Islamabad and are planning Wateen Telecom
expansions to other cities. These operators are
6
offering services ranging from Triple Play to Dark SMW 4
Fibres to a whole range of end users. The access Internation
al optical
fibre links
pricing has dropped to less than US$ 12/month for a
512 Kb/s connection. A triple play bundle
costs less than US$ 40/month. With the
possibility of utilizing the 5 M land line
network of the PTCL for DSL, new
operators are driving the Broadband
penetration quite aggressively.
7
HFC Cable operators are now upgrading
their networks in order to offer triple play
services after acquiring requisite licenses
from the PTA or entering into franchising
relationships with existing operators.
Niyatel
4 Multiple Protocol Label Switching
5 FTTH: Fibre To The Home
6 Triple Play: Voice, Video and Data
7 HFC: Hybrid Fibre Coax
6
Broadband
The demand for Internet and Broadband has been no less phenomenal. The growth over a 5 year
8
period has been over 7,700% with over 10.5 Million active users
In recent months the Broadband sector on DSL has started expanding with the facilitatory régime
in place for reduction in bandwidth prices, fair interconnect with the PTCL landline network and
the issuance of licences for WiMAX in the 3.5 GHz band. The numbers of DSL users stands at
over 100,000 with a target to hit 1.6 Million by 2009.
This will be achieved by support from the Universal Service Fund for expansion of Broadband
users, farming new frequencies in the 2.3, 2.5, 3.5 and other bands for WiMAX and other new
wireless technologies. As mentioned earlier, the private sector licensees are laying metro fibre for
HFC, Fibre access (FTTC, FTTH) in over 20 cities. The PTCL optical fibre reaches into the
heartlands at over 550 locations. This will help open the rural markets as the new private sector
owners expand and utilize the installed infrastructure.
New access media are growing – EDGE, EVDO, WiFi Mesh, WiMAX, Optical Fibre, DSL and
HFC are being deployed in different networks to capture this growing segment. In fact Pakistan is
leading the international deployment of WiMAX across the country. Three operators (Mobilink,
Wateen and Burraq) are deploying nationwide systems on the 802.16d/e standards. All this has
resulted in a huge growth of international connected bandwidth as well as rapidly dropping prices.
An E1 (2Mb/s) is available at US$1500/month and with competition heating up; it is expected to
drop further to sub US$ 1000 levels.
Total connected International Bandwidth
Multiple paths
9000 undersea
8000
7000
6000
5000
Mb/s
4000
3000
2000
1000
Voice+Data
0
2003 2004 2005 2006 2007
PTCL TW1 Total
New Undersea (and planned overland transnational Fibre systems) have ensured a degree of
redundancy and reliability which was not present earlier.
8http://www.internetworldstats.com/
7
The Deregulation and Privatisation
Liberalisation of the Fixed Line Sector
Pakistan inherited parts of Indian Telephone and Telegraph Department at the time of
independence in 1947. Since then, it functioned as a government department for providing
telecom services in Pakistan. In 1994, the government decided to transform it into public
corporation and then in 1996 it was further restructured into public limited company under the title
of Pakistan Telecommunication Company Limited (PTCL). The Pakistan Telecommunication
Ordinance 1994 provided a 25-year license for incumbent operator, Pakistan Telecommunication
Company Ltd (PTCL), to provide domestic and international telephone services.
Keeping in view the inefficiencies of the basic telecom sector Government of Pakistan decided to
move away from monopolized market structure to more deregulated and liberalized one.
Government of Pakistan and Pakistan Telecommunication Authority, along with World Bank
Consultants made concerted efforts to facilitate this process. Pakistan Telecommunication
Authority (PTA) received applications from 95 companies for the grant of Local Loop (LL) and
Long Distance International (LDI) licenses from the prospective investors. Out of these 39
companies opted for LL licenses while 23 opted for the award of LDI licenses.
The PTCL was recently privatized and 26% shares with management rights sold to Etisalat at
US$ 2.6 Bln.
Award of FLL and LDI Licences
So far PTA has issued 14 LDI
Licenses to various National and
Multinational Companies. PTA has
also issued 84 Fixed-line Local Loop
(FLL) Licenses to various companies
for 14 telecom regions of Pakistan.
http://www.pta.gov.pk/index.p
hp?option=com_content&task=view&i
d=849&Itemid=625
Cellular Networks
9
Five GSM operators and one
(deploying) WCDMA operator are driving the cellular market in market in Pakistan. This is one of
the fastest growing markets in the world and has brought about considerable social and economic
change in the country. With facilities like CPP, fair interconnect, clear frequency band availability,
trained manpower and financial and banking support, this sector has attracted the maximum
investments into Pakistan in the last 3 years.
Between the operators over 6000 cities, towns and villages are already covered and with the
continuing aggressive roll out, it is expected that most of Pakistan (including the rural areas) will
have cellular coverage in the next two to three years. The license fee determined by open auction
was US$ 291 M for each operator.
9 See Annex
8
Investors
Telecommunications has attracted investment from a wide variety of players. These range from
Telenor Norway, Warid UAE, Etisalat UAE, Singtel Singapore, Orascom Egypt, QTel Qatar,
Diallog Uzbekistan, etc. These are serviced by a range of vendors from Europe, USA, China,
Canada, etc. The investment rules and regulations for FDI are very supportive and 100% foreign
ownership is permitted as is unhindered repatriation of profits and equity.
Key Players
Due to the successful market opening and open competition, the Telecom landscape has
changed dramatically. Over the last few years a few leaders have emerged and the dominance of
the state owned Operator (PTCL) has been diluted. In Mobile networks, Mobilink (Orascom) has
over 40% market share and has revenue streams in excess of US$ 1Bln. In the fixed line sector,
PTCL still dominates in the wired and wireless (WLL) domain.
However, the voice traffic (domestic and international) has migrated considerably to the private
sector operators. In a similar manner there is a considerable shift of traffic in the bandwidth arena
as well. With a new private sector (TWA1) undersea fibre in place, the PTCL has lost over 35% of
the market. It is also expected that the new nationwide and metro fibres will migrate to these from
the earlier monopoly.
This dynamic has been described to illustrate the highly conducive environment for the new
investors who can acquire a large market share with appropriate investments and a high quality
offering of services.
Mergers and Acquisitions
Market consolidation is taking place in the changing competitive environment. Mergers and
Acquisitions have been taken place which has created higher levels of competition. While this has
created price pressures on the operators, they are striving for higher levels of quality and bringing
in new services. This in turn has driven demand further, creating new ARPU opportunities.
Mergers in Telecom Sector
Foreign Companies who Local Companies Share Amount paid
purchased shares who sold shares purchased US$ Million
(%)
1. Orascom, Egypt Mobilink 11.31% 290
2. Qtel, Qatar Buraq 75% 12.3
3. Singtel, Singapore Warid 30% 758
4. China Mobile, China Paktel 100% 764
5. Oman Tel, Oman World Call 60% 220
In addition to the International acquisitions, local companies have consolidated their positions by
buying unused frequency spectrum (for WiMAX) from other operators and ISPs and Data
Operators being merged into traditional voice operators (like the acquisition of World On Line by
Orascom).
Opportunities
9
While considerable licensing has been done for cellular, LL, WLL, LDI, ISP sectors, the
government has plans of opening up frequencies for WiMAX in different frequency bands as well
as issue new licenses for 3G cellular systems. Consultative processes are happening for setting
up large Voice and Data Peering Points, Converged Networks, MVNOs, LMDS networks, etc.
There is now a huge opportunity for operators or build on top of the competitive infrastructure
which has been installed (and is expanding by the day) to bring in high yield Value Added
Services. The next frontier is delivery of wired and wireless broadband services and the target is
to hit at least 3 Million users in the next few years (30% of the Internet user base) and innovative
solutions will be encouraged.
With market consolidation taking place, there are new opportunities for Mergers and Acquisitions
as has been evidenced in the last few months. Operators are diluting their equity in order to get
institutional investors and others are doing this to acquire the technical expertise to enable more
efficient operations.
Jump Aboard!
All this signals opportunities in the Traditional and Value Added sectors for not only creating new
businesses by riding on these systems but
also to be a part of new licenses which are Sector Revenue Growth
10
being reviewed. These include MVNO ,
3.50
Regional Hosting, Call Centers, Telecenters,
Video Conferencing, Content aggregation, 3.00
Converged networks, etc. On another plane, 2.50
US$ Billion
the Regulatory environment permits 2.00
spectrum trading, Mergers and Acquisitions
1.50
as well as entry via Private equity
1.00
arrangements. The market opening has
nearly doubled the sector revenues and this 0.50
trend is expected to grow. -
2004 2005 2006
The laws of Pakistan tightly protect foreign
investment and in all the years since the Fixed Line Mobile Data, etc
market deregulation started: 1989 for
cellular and 1993 when the first Payphone, Data and ISP licenses were issued, there has not
been one instance which reflects anything contrary to this.
New Government initiatives in Public Private Partnerships which depend on ICT infrastructures,
not only create demand for these services but also create growth opportunities for new source of
Revenue streams.
New and growing rural markets are turning established conventional thought on its head and
have forced the new operators to open out new and virgin areas. Clearly validating Pralahad‟s
vision of “Fortune at the bottom of the Pyramid”
Welcome Aboard.
10 MVNO: Mobile Virtual Network Operator
10
Annex 1
AVAILABLE INTERNATIONAL CONNECTIVITY AND RATES
International Connectivity (Capacities)
PTCL – SEMEWE - 3
Capacity: 3.98 Million MIUK Km (1 MIU=2Mbps)
PTCL – SEMEWE - 4
Capacity: 404,764 MUI km (1 MIU = 1 STM)
Transworld
2 fiber pairs, 32 Wavelengths, capable of 10 Gbit each
2 x 32 x 10 = 640 Gbit/s
Multinet
Has started to offer IPLC & IP bandwidth in partnership with Telecom Malaysia
through IRU (Indefeasible Right of Use) on SMW-4
Planned Future Systems
New operators e.g. Wateen who have laid nation wide optical fibre have requested to
connect India, via Lahore and also set up new undersea optical fibre landing stations at
Karachi
IPLC Tariff Ceilings
These ceilings for price as well as price multiples are applicable to PTCL for
provision of IPLC, up to landing station i.e. Karachi as per PTA‟s determination.
US$ per month
Capacity Old Tariffs * Effective 1/1/07**
ISPs / DNOPs LDI Operators ISPs/ Voice
DNOPS Services
E-1 (2Mbps) 3,000 2,852 2,100 2,300
DS-3 (45Mbps) 48,000 - 16,800 18,400
STM-1 (155Mbps) 112,500 - 48,300 52,900
Price Multiples 1:16:38 1:8:23 1:8:23
* Distance agnostic
** Upto landing station
1US$ = Pakistani Rupees 60
11
Annex 2
WLL Auctions
These auctions yielded over US$ 230 M in licensing fees for all the Regions.
S. # Regions 1.9 GHz 450 MHz 479 MHz 3.5 GHz Total
US$ M US$ M. US$ M US$ M
US$
1 Karachi 60.2 4.4 0.5 4.3 69.4
(KTR)
2 Faisalabad 21.3 3.4 0.1 0.5 25.1
(FTR)
3 Lahore 17.7 2.8 0.1 1.3 21.8
(LTR)
4 Gujranwala 14.8 4.0 0.4 0.1 19.2
(GTR)
5 Multan 14.3 3.5 0.3 0.1 18.2
(MTR)
6 Islamabad 14.5 1.1 0.1 0.8 16.5
(ITR)
7 Northern 10.1 3.1 0.3 0.5 14.0
(NTR-I)
8 Rawalpindi 10.0 3.2 0.3 0.1 13.5
(RTR)
9 Southern 6.7 2.0 0.1 0.1 8.9
(STR-I)
10 Central 6.1 1.8 0.0 0.0 7.9
(CTR)
11 Western 3.8 1.9 0.2 0.1 5.8
(WTR)
12 Southern 4.0 1.6 0.2 0.1 5.8
(STR-V)
13 Northern 2.8 1.3 0.1 0.1 4.2
(NTR-II)
14 Haripur 1.7 2.0 0.2 0.1 3.9
(HTR)
G.Total 187.6 35.9 2.9 7.9 234.3
12
Annex 3
WLL Spectrum ownership map
In the recent months this has undergone a consolidation with large portions of spectrum for
WiMAX being bought out by larger players from the smaller operators with fragmented markets.
13
Annex 4
Licenses issued to operators - pre and post deregulation
Cellular Mobile Companies
S. No. Company Name
1 M/s Pakcom Limited (Instaphone)
M/s Pakistan Mobile Company Limited
2 (Mobilink)
3 M/s Paktel Limited (Paktel)
4 M/s Telenor Pakistan Limited
5 M/s Warid Telecom Limited
M/s Pakistan Telecom Mobile Limited
6 (Ufone)
Long Distance & International (LDI)
S. No. Company Name
1 World Call Telecom Ltd
2 Redtone Telecommunications Pakistan (Pvt.) Ltd
3 Link Direct International (Pvt.) Ltd
4 Callmate Telips Telecom (Pvt.) Ltd.
5 TeleCard Ltd.
6 DV Com Ltd
7 Wise Communication Systems (Pvt.) Ltd
8 Dancom Pakistan (Pvt.) Ltd
9 Burraq Telecom Ltd
10 Wateen Telcom (Pvt.) Ltd
11 Telenor Pakistan (Pvt.) Ltd
12 Circle Net Communications Pakistan (Pvt.) Ltd.
M/s Multinet Pakistan (Pvt) Ltd
13
14 M/S 4B Gentel International (Pvt) Ltd
Wireless Local Loop (WLL)
S. No. Company Name
1 Telecard Limited
2 Burraq Telecom Limited
3 DV Com Limited
4 Worldcall Telecom Limited
5 Wateen Telecom (Pvt.) Limited
6 Microtech Links (Pvt.) Limited
7 Great Bear International (Pvt.) Limited
8 Cyber Internet Services (Pvt.) Limited
9 Zarco Telecommunication (Pvt.) Ltd.
10 Super Dialogue (Pvt.) Ltd.
11 Reliance Telecom (Pvt.) Limited
12 Ertibatat (Pvt.) Limited
14
Annex 5
Licenses issued to operators - pre and post deregulation (contd)
Fixed Local Loop (FLL)
S. No. Company Name
1 Dancom Pakistan (Pvt.) Ltd.
2 Easy Phone (Pvt.) Ltd.
3 Cyber-Soft Technologies (Pvt.) Ltd.
4 NetSol Connect (Pvt.) Ltd.
5 Air Track Telecommunication (Pvt.) Ltd.
6 Call 2 Phone (Pvt.) Ltd.
7 Web Concepts (Pvt.) Ltd.
8 Zari Telecommunications (Pvt.) Ltd.
9 Vision Telecom (Pvt.) Ltd.
10 Metrotel (Pvt.) Ltd.
11 Albadar Etisalat (Pvt.) Ltd.
12 Brain Ltd.
13 Hazara Communications (Pvt.) Ltd.
14 ION (Pvt.) Ltd.
15 Sohail & Inam (Pvt.) Ltd.
16 Telenex (Pvt.) Ltd.
17 Union Communications (Pvt.) Ltd.
18 Unified Technologies (Pvt.) Ltd.
19 Velocity (Pvt.) Ltd.
20 WorldCall Broadband Ltd.
21 WorldCall Multimedia Ltd.
22 Z-Communication (Pvt.) Ltd. (CCZ)
23 Eagle.Com (Pvt.) Ltd.
24 Naya Tel(Pvt.) Ltd.
25 City Links Communications Ltd.
26 Cyber House (Pvt.) Ltd.
27 Poleax Telecom (Pvt.) Ltd.
28 Multinet Pakistan (Pvt.) Ltd.
29 Whistler Telecom (Pvt.) Ltd.
30 Global Touch (Pvt.) Ltd.
31 Frontier Telecom (Pvt.) Ltd.
32 Stanley Telecom (Pvt.) Ltd.
33 Globecomm Wireless (Pvt.) Ltd.
34 Satcomm (Pvt.) Ltd.
IBEX Telecommunication
35 (Pvt.) Ltd.
PTCL, NTC SCO
S. No. Company Name
Pakistan Telecommunication Company Limited
1 (PTCL)
2 National Telecommunication Company (NTC)
3 Special Communication Orginisation (SCO)
15
Annex 6
Pakistan – some economic facts
Pakistan has an area of 796,096 square kilometers and population of 160 million. Strategically
located in South Asia, Pakistan is at the crossroads between Eastern and Western Asia. Pakistan
is the gateway to the energy rich Central Asian States, the financially liquid Gulf States and the
economically advanced Far Eastern tigers. This strategic advantage alone makes Pakistan a
marketplace teeming with possibilities. With three major international airports and thirty-eight
domestic airports, Pakistan is accessible via fifty international airlines. Pakistan's geographical
location, a rapidly expanding transportation and communications infrastructure and an
environment conducive to business makes it an attractive destination for investors.
Pakistan Economic Facts 2007
Indicator 2002-03 2003-04 2004-05 2005-06 2006-07
Real GDP Growth (%) 4.7 7.5 9.0 6.6 7.0
Foreign Exchange Reserves US Billion 10.7 12.3 12.6 12.8 15.1
Per Capita Income US$ 586 669 733 833 925
Population (Million) 147 150 152 155 158
Economic Indicators (2006-2007)
Indicators 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-2007 + (-) %
Exports (Billion $) 9.20 9.13 11.16 12.31 14.39 16.47 17.01 3
Imports (Billion $) 10.72 10.34 12.22 15.59 20.60 28.58 30.54 9
Trade Balance (Billion $) (1.52) (1.20) (1.06) (3.28) (6.21) (12.11) (13.53) 12
Net Revenue (Billion Rs.) 393.9 404.1 460.6 518.8 590.39 712.61 841.4 18
FDI (Million $) 322.40 484.70 798.00 949.40 1524 3,521 5,125 46
Foreign Investment
(Million $) 182.00 475.00 820.00 922.00 1677 3,872 8,417 88
(FDI+Public&Private Portfolio)
Workers Remittances
1.09 2.39 4.24 3.872 4.17 4.60 5.49 19
(Billion $)
Forex Reserves (Billion $) 3.22 6.43 10.72 12.33 12.61 13.14 15.18 16
Exchange Rate (Rs./ US$) 58.4 61.0 57.7 57.92 59.66 60.16 60.5 1
Stock Exchange Index 1300 1520 3402 5279 7450 9,989 13,772 38
GDP Growth 2.6% 3.6% 5.1% 6.4% 8.4% 6.6% 7.0%
Inflation 4.4% 3.4% 3.3% 3.9% 9.3% 8% 7.9%
16
