Study of Afghan Telecom Industry (MNOs, ISPs) ACKU Rahima Baharustani May 2013 Research, Planning & Policy Directorate, AISA Study of Afghan Telecom Industry 2013 Disclaimer: Views of the author expressed in this report do not necessarily reflect the official position of Afghanistan Investment Support Agency. ACKU Note: Exchange rate of 1$=50 AFN has been considered throughout the report. II Study of Afghan Telecom Industry 2013 Acknowledgments This study was researched and written by Afghanistan investment support agency, which was authored by Rahima Baharustani. “I would like to express my deepest appreciation to higher management of AISA, particularly Mr. Wafiullah Iftekhar CEO/President of AISA, and Mr. Junaidullah Shahrani, Research Policy and Planning Director for their continuous encouragement, tremendous support and help. In addition, I would like to thank the participant of survey Mr. Ahmad Zaki, and Dr. Fazel Rabi, who willingly shared their precious time during the process of interviewing. Furthermore, I acknowledge all key informants who helped us in providing the required information”. ACKU III Study of Afghan Telecom Industry 2013 Table of Contents ACKNOWLEDGMENTS...........................................................................................................................................III TABLE OF CONTENTS.............................................................................................................................................IV EXECUTIVE SUMMARY..........................................................................................................................................VI CHAPTER: 1. INTRODUCTION .................................................................................................................................1 SAMPLE AND METHODOLOGY...........................................................................................................................................1 CHAPTER: 2.TELECOM SECTOR...............................................................................................................................3 AFGHAN TELECOMMUNICATION AND REGULATORY AGENCY (ATRA) ........................................................................................4 IMPORT OF ICT GOODS ...................................................................................................................................................5 INVESTMENT IN TELECOM SECTOR .....................................................................................................................................5 REVENUE GENERATED BY TELECOM SECTOR.........................................................................................................................7 JOB CREATION ...............................................................................................................................................................8 CHAPTER: 3.MOBILE NETWORK PROVIDERS ..........................................................................................................9 RULES AND REGULATIONS................................................................................................................................................9 PRODUCTION...............................................................................................................................................................10 ACCOUNTABILITY..........................................................................................................................................................10 COMPETITION..............................................................................................................................................................11 CHAPTER: 4.DEMAND SIDE (DETAILED FINDINGS OF SURVEY) .............................................................................12 FACTORS FOR BUYING SIMS ............................................................................................................................................12 QUALITY.....................................................................................................................................................................13 AFFORDABILITY............................................................................................................................................................14 FIXED AND MOBILE DIGITAL PHONES EXPANSION.................................................................................................................14 CHAPTER: 5. INTERNET SERVICE PROVIDERS........................................................................................................ 15 PRODUCTION...............................................................................................................................................................18 JOB OPPORTUNITIES BY ISPS...........................................................................................................................................19 COMPETITION..............................................................................................................................................................20 FUTURE PLAN OF ISPS...................................................................................................................................................21ACKU CHAPTER: 6. DEMAND SIDE (KEY FINDINGS) ........................................................................................................ 22 AFFORDABILITY............................................................................................................................................................24 QUALITY.....................................................................................................................................................................25 COMPARISON ..............................................................................................................................................................27 SWOT ANALYSIS OF ISPS ..............................................................................................................................................28 CHAPTER: 7.GROWTH AVENUES .......................................................................................................................... 29 OPPORTUNITIES IN MNOS.............................................................................................................................................29 OPPORTUNITIES IN ISPS ................................................................................................................................................30 PROBLEMS AND CHALLENGES.............................................................................................................................. 31 IV Study of Afghan Telecom Industry 2013 PROBLEMS AND CHALLENGES FACED BY MNOS..................................................................................................................31 PROBLEMS AND CHALLENGES FACED BY ISPS......................................................................................................................31 PROBLEMS AND CHALLENGES FACED BY USERS....................................................................................................................31 RECOMMENDATIONS .......................................................................................................................................... 32 RECOMMENDATIONS BY MNOS: ....................................................................................................................................32 RECOMMENDATION BY ISPS:..........................................................................................................................................32 RECOMMENDATIONS BY TELECOM SERVICE USERS: .............................................................................................................33 CONCLUSION .......................................................................................................................................................34 ACRONYMS..........................................................................................................................................................35 SOURCES CONSULTED:......................................................................................................................................... 36 APPENDICES.........................................................................................................................................................37 APPENDIX A:...............................................................................................................................................................37 APPENDIX B:...............................................................................................................................................................42 APPENDIX C: ...............................................................................................................................................................44 ACKU V Study of Afghan Telecom Industry 2013 Executive Summary Introduction of new technology in communication has become important part of daily life, facilitating easy, fast, and reliable communication all over the world. Telecommunications apply to social and economic benefits, healthcare, education, digital economy, businesses, and in creation of new jobs. All these are potential opportunities that can