Thursday, September 24, 2020

2019: Challenges ahead for the Telecom Industry


Cell expertise reworked virtually all of the industries within the nation and m-commerce, m-governance, m-agriculture, m-health, and m-education have change into a routine a part of our lives via a technique or one other. Relating to the technological developments within the nation, many worldwide firms like Uber, Careem, Oppo, Vivo, i2C have additionally began taking curiosity in Pakistani market and this not solely has accelerated the digital revolution however have additionally performed a significant function in uplifting the socio-economic circumstances of the nation.

Pakistan’s Telecom sector has been impressively fast-paced and contributed quite a bit in bringing Cell Broadband companies to the nation that has contributed $4.42 billion to Nationwide exchequer throughout a 3-year interval from July 2014 to June 2017

The expansion charge of Pakistan’s telecommunication sector has been impressively fast-paced and contributed quite a bit in bringing Cell Broadband companies to the nation and has contributed $ 4.42 billion to Nationwide exchequer throughout July 2014 to June 2017. In 2014 there have been solely 114 million cell subscribers that shortly rose to 152 million by the top of November 2018 whereas the 3G/4G subscribers additionally grew at a powerful charge from 13 million in 2014 to 60 million in November 2018. However the place there are alternatives, there are some challenges as effectively.

2018 was an excellent yr for our business though it was slower than the last few years however nonetheless, the business managed to place some spectacular work ahead. Now that we’ve headed in to a brand new yr, we’re nose to nose with some key challenges which are obstructive to the general development of the business. Listed below are among the key challenges.

1: Licence Renewal

The three cell licenses awarded by PTA are due for renewal in 2019. These licenses had been granted in 2004 for 15 years to Telenor, Zong and Warid Telecom. Whereas the remaining two cell operators, Jazz (Mobilink) and Ufone will not be due for renewal till 2022 and 2029, respectively. Beforehand, $291 million every was paid by Ufone and Mobilink-Jazz for his or her first license renewal for GSM companies in 2007(Jazz) and 2014(Ufone).

Prime Minister has constituted a technical committee to guage benchmarks for the license renewal of three cell operators and award of further spectrum. The federal government is anticipated to generate $2 billion in income from the method. The technical committee is headed by Secretary MoITT whereas officers from PTA, Ministry of Finance, Legislation and Justice and FAB are the members of the physique.

All telecom operators have made recommendations to the federal authorities that time period and circumstances of the renewal of cell license needs to be stored similar on which license of Ufone obtained renewed in 2014 to offer a good and balanced enjoying area

In keeping with specialists, renewal selections ought to ideally be finalized 18-24 months previous to license expiry to make sure service and enterprise continuity. As a result of delay in saying license renewal coverage, telecom operators would have little time for selections about future funding and marketing strategy, which is creating uncertainty within the business.

That is going to be an enormous problem within the coming months as the federal government must provide you with a coverage plan that satisfies all stakeholders. Only recently, all telecom operators have made recommendations to the federal authorities that time period and circumstances of the renewal of cell license needs to be stored similar on which license of Ufone obtained renewed in 2014 to offer a good and balanced enjoying area for all firms’ equal development.

2: 5G Trial:

2019 might be a giant yr for cell expertise. Worldwide Telecommunication Union (ITU) goes to finalize 5G requirements in 2019. Many nations have already began 5G trials, and are anticipated to formally launch their 5G companies this yr. The launch of 5G might be a sport changer within the cell world as current 5G trails carried out overseas have already demonstrated the pace of 9.Three Gbps over 24 GHz spectrum, almost 10 occasions quicker than the theoretical most knowledge charge for 4G.

Telenor and Zong could be the prime candidates to introduce 5G as each have proven curiosity in 5G trials

In Pakistan, Telenor and Zong could be the prime candidtaes for introducing 5G as each have already proven their curiosity in 5G Trials. Telenor Pakistan has already introduced the cutting-edge aggregation expertise which is a step in direction of 5G in Karachi, Lahore, Rawalpindi and Islamabad.

Using the superior broadband characteristic of ‘Provider Aggregation’, Telenor Pakistan is the primary to combination its LTE 850 and LTE1800 networks as one to offer higher knowledge service expertise. This characteristic leverages the accessible frequency of various bands, thus enhancing the client expertise.

Telenor Pakistan has additionally marked the primary deployment of the AirScale Base Station Controller (BSC) and AirScale Radio Community Controller (RNC) on AirFrame cloud infrastructure in Pakistan. Alternatively, Zong and Huawei have launch LTE FDD MIMO websites with progressive 32T32R expertise used on the present spectrum to enhance the user-perceived charge from 3.eight Mbit/s to 13.6 Mbit/s.

To shortly resolve live-network challenges, like inadequate protection and restricted capability and enhance consumer expertise, Zong 4G and Huawei collectively carried out a number of progressive tasks in 2018, together with LTE 4T6S, microwave MIMO and CloudAIR. Significantly, the 4T6S answer improved community capability by 1.eight fold and the user-perceived charge by 3.eight fold.

PTA has unveiled a draft framework doc associated to 5G trails, its doable spectrum and details about its associated companies in Pakistan

Through the tenure of the earlier authorities, the directive to PTA was permitted by the Cupboard to start out the testing of recent expertise and its bold plan to commercially launch 5G by 2020. PTA has now unveiled a draft framework doc associated to 5G public trails, its doable spectrum and details about its associated companies in Pakistan.

The draft doc accommodates totally different procedures and circumstances wanted for authorized testing of 5G in Pakistan. Frequency Allocation Board will situation momentary spectrum for non-commercial testing after which authorization certificates might be given to the businesses.

Nevertheless, in response to the business specialists, deployment of 5G is dearer than 4G, subsequently; subsequently, the brand new authorities could take a while in introducing the expertise as a result of difficult financial and market circumstances of the nation. Additionally, as stated earlier Telenor, Zong and Jazz-Warid will get their licenses renewed this yr which would require large investements from these operators. So first going for a license renewal after which for added spectrum might be unfeasible for the operators as effectively.

Though PTA has drafted an preliminary doc however there may be nonetheless a protracted strategy to go and requires an in depth roadmap as a proactive strategy is important to make sure market readiness and affluence of all stakeholders for the following wave of cell revolution. 5G has the potential to create employment and funding alternatives in Pakistan through the coming years, subsequently; the federal government must provide you with a coverage resolution that advantages all stakeholders.

3: Coverage Implementation:

The a lot awaited Telecom Coverage of 2015 was a stepping stone for the business. The coverage included quite a few essential points together with new competitors guidelines, licensing framework, insurance policies for OTTs, Public Wi-Fi, infrastructure sharing, spectrum Harmonization, Refarming, Sharing & Mergers/acquisition, Interference Safety.

Coverage initiatives nonetheless wants extra to be achieved. Spectrum harmonization, refarming and mergers/acquisitions, check license, and licensing framework whereas have been developed however must be intently monitored for profitable implementation

Quite a lot of work has been accomplished on the coverage initiatives however nonetheless far more is required to be accomplished. Spectrum harmonization, refarming and mergers/acquisitions, Take a look at license, and licensing framework have been developed that resulted in profitable refarming by Ufone and Telenor whereas paving approach for historic Mobilink-Warid merger.

Though again in 2017, MoITT launched a Draft Pakistan Telecommunication Competitors Guidelines 2017 however no additional work was accomplished on it. Equally, nothing substantial has been accomplished up to now for interference safety, Public Wi-Fi, and OTT insurance policies, nationwide roaming.

Zong remains to be dealing with community interference of their uplink GSM 900 MHz band as a result of cross-border spillover from Indian CDMA operators. Frequency Allocation Board assigned the compensatory band to Zong on a short lived foundation however a everlasting answer has but to be devised. In such scenario, the spectrum holdings in 900 MHz and 1800 MHz band must be rationalized for correct service planning that requires correct coverage plan.

PITB in 2017 had put in WiFi routers in about 250 areas, together with metro stations, instructional establishments, the railway station and different public areas of Lahore, Rawalpindi and Multan. As a result of lack of Funds, the undertaking has just lately been terminated by the Authorities

Free Wi-Fi undertaking was additionally included within the Telecom Coverage 2015 however solely Punjab authorities took up the initiative. PITB in 2017 had put in WiFi routers in about 250 areas, together with metro stations, instructional establishments, the railway station and different public areas of Lahore, Rawalpindi and Multan. As a result of lack of Funds, the undertaking has just lately been terminated by the federal government.

The undertaking was began in affiliation with the Pakistan Telecommunication Firm Restricted (PTCL), however the authorities didn’t pay dues value over Rs 150 million. Along with that, one other Rs190 million was wanted to maintain the service working so the federal government discontinued the undertaking terming it as a “burden on the exchequer.”

Insurance policies for regularization of OTT and different on-line companies are a subject of debate amongst authorities establishments for fairly a while now. The Coverage said any new licensing coverage could require over-the-top companies to get “common authorization” to function within the nation. This “common authorization” could require OTT companies to agree on phrases — that might be outlined by PTA — together with any nationwide safety necessities. However no concrete efforts have been taken up to now to develop a correct coverage for them.

Equally, no coverage has been developed for nationwide roaming both. Apart from these fundamental elements of Telecom Coverage 2015 there are lots of different points as effectively that require authorities’s consideration.

4: Telecom Legal guidelines and Laws:

The Telecom Coverage 2015 additionally required the federal government to plot new legal guidelines and rules for Sort Approval, content material administration on the web, lawful interception and convergence. PTA has efficiently developed its Sort Approval mechanism additional strengthened by improvement and implementation of DIRBS. Nation’s first cyber-crime regulation was additionally formed though in response to some it’s fairly inflexible and ambiguous and requires enchancment however nonetheless, a step ahead in direction of the appropriate path.

PTA has efficiently developed and launched state-of-the-art System Identification Registeration and Blocking System (DIRBS) that can clear the gadget eco system of all unlawful handsets

A vital level talked about within the coverage was the convergence of regulatory our bodies; PTA and PEMRA because it not solely provides to the confusion however organizational inefficiencies. Sadly, the matter has by no means come underneath additional dialogue in any MoITT assembly and agenda after that.

For the reason that coverage launch, many adjustments available in the market have taken place so the federal government must take a pro-active strategy and introduce insurance policies and rules which are in accordance to the altering developments

The Telecom Coverage was meant for 5 years or relying upon market and different developments. That is the fourth yr because the coverage launch and plenty of adjustments available in the market have taken place so the federal government must take a pro-active strategy and introduce insurance policies and rules which are in response to the altering developments whereas on the similar time it also needs to work to complete the unfinished side of the insurance policies and replace those which have already been launched. To realize all of this, relentless dedication is required from MoITT and PTA.

GSMA Cell Gender Hole Report 2018 says that solely 44% of ladies personal cellphones whereas, 80% of males are utilizing cellphones. Additionally cell web penetration is simply 10% for girls campared to 26% for males

5: Insufficient instructional capability and Gender Hole in ICT

The quick paced development of ICT business of Pakistan is a commendable feat acknowledged all around the world however sadly, the adoption charge shouldn’t be at par with that tempo.

Since expertise has change into crucial side for the socio-economic development of any nation, steps needs to be taken to teach individuals about its utilization and advantages, particularly in schooling sector

Considered one of main motive for gradual adoption is the insufficient instructional capability and gender hole in cell expertise. Since expertise has change into crucial side for the socio-economic development of any nation, steps needs to be taken to teach individuals about its utilization and advantages, particularly in schooling sector.

Studying about tech developments shouldn’t be restricted for IT graduates or tech fans quite it needs to be imparted throughout the board. Equally, concrete steps are wanted to be taken to fill the gender hole in expertise. In keeping with Cell Gender Hole Report 2018, solely 44% of ladies personal cellphones whereas, 80% of males are utilizing cellphones.

Cell web penetration can be very low in Pakistan, solely 10% of ladies in Pakistan use cell web in comparison with 26% of males. The federal government must take some severe initiatives to advertise expertise uptake within the nation.

6: Mental Property Rights Safety

To advertise and shield and help younger entrepreneurs and new startup enterprise in ICT the federal government additionally must work on Mental Property Rights Safety. Mental Property (IP) refers to creations of the mind for which an unique proper is assigned to designated house owners by regulation. Mental property rights (IPRs) are the protections granted to the creators of IP, and embrace emblems, copyright, patents, industrial design rights, Format designs of built-in circuits, Geographical Indications and Plant Breeder’s Rights.

IP legal guidelines are essential to draw overseas traders available in the market. Additionally, native gamers might be extra assured to start out companies if they’re positive they’re effectively protected by the regulation

With developments in expertise, there are a selection of recent distinctive on-line enterprise concepts and functions coming available in the market every so often. Due to this fact, the federal government must introduce ICT particular IP legal guidelines to enhance the arrogance of the business. These legal guidelines are extremely essential to draw overseas traders available in the market additionally, native gamers might be extra assured to start out companies if they’re positive they’re effectively protected by the regulation.

7: New Authorities Setup

2018 was a yr of change within the political setup of the nation the place a brand new political get together got here to energy for the very first time. As a result of its inexperience and tough financial circumstances of the nation, it was fairly onerous for PTI to settle in its place quite it’s nonetheless struggling to formulate a transparent roadmap to run the nation.

The personnel on the MoITT and PTA are additionally nonetheless attempting to get a grasp of their roles. There are such a lot of fronts at which the brand new workforce has to work which incorporates, the introduction of ahead trying insurance policies and rules, introduction of recent applied sciences,

boosting the IT exports with a cross-cutting technique pushed from the centre, improved infrastructure, uplifting human capital, supportive tax insurance policies, incentivizing innovation and inspiring entrepreneurship.

There are such a lot of fronts at which the brand new workforce has to work that features introduction of ahead trying insurance policies and rules, introduction of recent applied sciences, boosting IT exports, improved infrastructure, uplifting human capital, supportive tax regime, incentivizing innovation and inspiring entrepreneurship

Though PTI authorities could be very dedicated in direction of expertise developments and gave particular significance to digital coverage in its get together manifesto however earlier than formulating any main coverage, it has to totally perceive the dynamics of the Pakistani ICT business and that requires time.

Let’s wait and see how the way forward for our ICT business will form sooner or later.



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