Future of Telecom Industry Amid COVID-19
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Future of Telecom Industry amid COVID-19 From waves to the new normal, recovery, adaptation and resilience in Pakistan Pakistan Telecom Industry – History (Policy Interventions) Mobile Cellular Decision to convert PTRA, 1996 - Policy - Jan ’04 erstwhile T&T Conversion of PTC [USF & R&D Fund] Department into into PTCL, creation De-Regulation Approval of Cellular Corporation (PTC) of government Policy – July ‘03 Mobile Policy - 2004 operator NTC, 1990 Issuance of licenses to Regulator PTA, Award of licenses 2 new Cellular Frequency Mobile, 12 LDI, and to 2 Cellular Allocation Board more than 76 LL Mobile operators (FAB) operators through open auction LL 3 Operators LDI/WLL 13 Operators AMPS None GSM – 2G 5 Operators Grant of another PTCL exclusivity Privatization of PTCL GSM based for fixed line through selling of Cellular Mobile telecom sector 26% strategic license terminated shares to Etisalat 1990 ‘92 ‘98 ‘03 ‘04 ‘05 ‘06 Licenses granted to two new subsidiaries of PTCL namely PTML (Ufone) and Paknet (ISP) - 1999 - PTCL privatization process re-started CALLING PARTY PAYS (CPP) – year 2000 Pakistan Telecom Industry – Journey to New Generation Technologies Launch of Launch of NIC in NIC other Provinces of Formulation of Islamabad Pakistan May 2014 - NGMSA New Telecom Jazz 4G in Spectrum Auction Policy, 2015 1800 MHz in 2100 MHz New Concepts Spectrum 1800 MHz and introduced such as through MGMSA 850 MHz Spectrum Sharing/Trading, ~USD 1 Billion Zong, Mobilink, Ufone Active Infrastructure Telenor 4G Tower Co Deal Sharing and in 850 & Telenor – 3G/4G Mobilink & MHz Fails, 2018! inclusion of e- Warid Spectrum - License Renewals PTCL services in USF Merger through in 2019 under Mobilink Broadband March-2016 MGMSA litigation?? License Instaphone Initiatives Zong 4G while Renewal Growth in NGMS Subscriptions and License Warid used its EVO Charjee Introduction of App/Platform based in 2007 got Technology Neutral [Limited Business Cases [Uber, Careem, @291M Defunct 1800 MHz Spectrum FoodPanda, BaKhabar Kisan etc.] USD Mobility] for LTE Services [850 MHz] 07 08 09… …13 14 15 16 17 2018…-21 Establishment of USF Co and R&D Ufone License Renewal Focus on Data - Policy Directive on Introduction of NGMS in Pakistan Fund Co [Ignite] Process – 8th April, 2014 Introduction of 3G (256 Kbps) and advance services in unserved areas through USFCo Focus on Voice - Unserved Areas through USFCo Projects The five fully featured National Incubation Centers (NIC) established across the country, has so far raised an investment of Rs2.84 billion and created more than 890 jobs. Contribution of ICT/Telecommunication through Digital Inclusion in an economy Growth: • 1% growth in mobile penetration can boost GDP growth by 0.28% • 1% growth in internet penetration can boost GDP growth by 0.077% • 10% increase in broadband penetration accelerates GDP growth by 1.38% (Source: GSMA study on Pakistan) Productivity: • Better information flows reduce transaction costs from travelling long distances • 10% increase in mobile penetration boosts Total Factor Productivity by 4.2% in long run Digital Pakistan International Best Practices in Initiative – Digital Services/e- COVID-19 GoP Services (education, health, commerce etc.) • Accelerating the licensing of all available IMT spectrum & Vision & Allowing more flexible IMT spectrum use Direction • User Facilitation – CMOs and Landline operators’ initiatives • Reduced license fees including fees for spectrum license • Industry Facilitation – Deliberations on Telecom • Facilitating the use of new FWA industry issues (Taxation, networks ROW, Industry status etc.) • Government subsidy to operators for broadband • 1800 & 2100 MHz Spectrum – services specially fiberizing the NGMSA 2021 Auction & urban & rural hubs Rationalization Future Outlook of Telecom Sector in Pakistan Industry players will learn Convergence of services - during the journey from INTERNET will be the basic New service delivery modes waves to new normal, need – Increase in Data and innovative monetization recovery, adaptation and Pipes/Capacity/Connectivity strategies to meet continued resilience in Pakistan user expectations Market Consolidation & Regulatory modernization – Resource Sharing Cross sector Legislation (Data Hyper Competition among (Infrastructure and Spectrum) Protection and Information the CMOs as well as the catalyzed by High Security) in addition to sector industry players CAPEX/OPEX requirements specific National Broadband and Low ARPUs in Pakistan Policy & Frameworks There is potential to be leading market in the region with the underlying assumption that Regulator(s) will play its role in ensuring level playing field and ease of doing business – example being affordable ROW provisioning for extensive rollout of FTTH Four main themes are recommended to be addressed globally by regional and national governments supported by national regulatory authorities and industry stakeholders: 1. addressing the digital divide: The huge shift to online activity means that ITU Report social groups without affordable connectivity are now more disadvantaged than before the pandemic Pandemic 2. driving digital deepening: In contrast to addressing the digital divide, 2021– digital deepening is primarily driven by economic objectives of increased efficiency, productivity, competitiveness and growth. It is not limited to in the Internet access networks; backhaul, cloud infrastructure and international submarine/satellite capacity must also be properly dimensioned for the additional load and more. Age / Four Key 3. effecting digital transformation: The shift to digital processes requires a broad digital transformation in institutions and in business and government processes, including access to health care, financial services Themes and government services. A critical component of this shift is to improve the digital literacy of less capable groups so that they are comfortable accessing services online. More difficult, but just as important, is cultural change in societies, government and companies. 4. building digital resilience: The rapid increase in demand for services experienced at the onset of the COVID-19 pandemic means that additional capacity and resilience have to be built into telecommunication infrastructure systems and services. In a period of uncertainty, the returns for building additional “headroom” are increased. Again, building digital resilience it not limited to access networks; backhaul, cloud infrastructure, international submarine/satellite capacity and ICT systems must be properly dimensioned for present and future crises and disasters. .