it & telecom industry

8/14/2019 IT & Telecom Industry

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Telecommunication can be defined as Communicating information,including data, text, pictures, voice and video over a long distance.

Pakistan is an ideal country to play a vital role in providing goods and

services to the world community because of its location.

Arguably, no area is as promising in its potential as IT & TelecomIndustry.


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Information is a key to success and future growth.

Access to right information gives decisive competitive advantage.

The IT & Telecom Industry is revolutionizing the way, in which we liveand work. It is changing all aspects of our life and life style.

Computers and Communications are becoming integral parts of our lives.


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After Separation of India-Pakistan

No base of information technology at the time of independence.

Office work was carried out by manually type writers.

At that time fastest communication link was telephone and telex.

In 1957, Ali group, set up a company called packages limited.


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Era of 1960s

1960s was an era of main frame computers.

In 1964, water & power development authority (WAPDA)established its computer center in WAPDA house by installing

IBM-360 mainframe computer.

At that time, IBM was the biggest computer manufacturingcompany in Pakistan.


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Era of 1970s

ICL ( international computers limited) also started selling main

frame computers in Lahore, Islamabad & Karachi.

NCR (national cash register) was the third biggest IT company

in Pakistan.

In 1977,the first private software company systems privatelimited was formed by packages limited in Lahore.


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Era of 2000

IT introduced in school and colleges.

Cyber cafe were opened to create awareness in peoples.

In rural areas, telecommunication facilities were provided

through small PCOs and exchanges.

Educational institutes.


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There are more than 300 software houses based in Pakistan

which are busy in developing and exporting software to the

developed world.

The cost of Internet was reduced which has led to improvement

in quality of service for the Internet users.

Free Internet connections are being extended to public sectorUniversities under an agreement with the private sector ISPs

and PTCL.


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License applications in the deregulated sector by the PTA has

been reduced to 7 days from several months.

In order to deliver efficient IT infrastructure, PTCL would now

provide Internet connectivity to the ISPs within 4 to 8 weeks.

Previously this connectivity used to take 4 to 12 months.

The size of Pakistan IT industry is estimated at US $ 1.5 billion

per year with average growth of 35% per year.


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Cities connected on Internet


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Public Call Offices


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Mobile Phone Subscribers


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Mobile Phones vs. Landlines


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Government should maximize the opportunities to privatesector.

Develop extensive pool of IT trained professionals to meet

local and export requirements.

Encourage local and foreign investors to ensure developmentof IT sector of Pakistan.

Setup national databases that are reliable, secure, up to-dateand easily accessible.


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Promote extensive use of IT applications in trade, industry,

homes, agriculture, education, health, and other sectors with

widespread use of Internet.

Encourage and promote the development of quality software

that can capture export markets.

Develop a tradition of electronic commerce for both nationaland international transactions.


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The Deregulation process started in early 90s.

The process strengthened with the promulgation of the PakistanTelecommunication (Re-Organization) Act 1996, under which

Pakistan Telecommunication Authority (PTA) was established toregulate the telecommunication sector.

Telecommunication services such as cellular mobile telephony,

Internet, Data Communication, Trunked Radio service, RadioPaging and value added services are already deregulated.


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In 2nd phase to open the sector with full competition by Jan2003, a De-Regulation policy was framed and approved by the

Government.


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The salient features of De-regulation policy

Opening of licenses for long distance local fixed telephony.

Opening of local and long distance telephony.

Transparent procedure for award of licenses.

Low fee structure.

Incentives for investors.


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The Government has adopted a two-tiered approachfor IT industry development:

(a) Domestic Initiative

A developed local software industry will not onlymeet Pakistans own needs, but will also serve as a

training ground for capturing export markets.


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(b) Export Initiative

Rising costs in developed countries have significantly

increased software development outsourcing. This hasenabled other countries, especially those in Asia (such as

India and China), to tap-offshore software development

business. So far, Pakistan has not been able to secure

any significant share of the global software market.


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Minister for Information Technology Awais Ahmad Khan

Leghari marking the signing of separate contracts by Telenor

Pakistan with Nokia and Siemens for the extension of ongoing

frame agreements involving deployment of radio network

equipment, core network elements and other services until

2009. The agreements with a potential to result in $750 million

worth of orders from Telenor Pakistan are some of the largest

of their kind in the industry.


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The information technology industry in Pakistan is witnessing a

transformation of unbelievable magnitude, driven primarily by the country's

excellent economic growth.

For a revolution that captured the world in the new millennium, theadoption of information technology in Pakistan started slow, but has

propelled since the domestic companies have increased and started

contributing to the global supply chain either as suppliers or contractors or

customers.


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Several factors and changes that the Pakistan economy has

been through in the past decade:

The telecom revolution Introduction of regulatory compliances

Fierce competition by international giants

IT commoditization

Development of new products, technologies and services


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There is a greater demand for automated solutions in thecountry today, especially in the services sector like banks andtelecommunications companies.

Add to this an impressive countrywide awareness about anddemand for quality customer services. This is furtherstrengthened by compliance requirements championed byregulators.


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Unrivalled demand is being witnessed in the manufacturingsector, driven largely by an urgent need to optimize supplychain and the necessity to adopt best practices in an

increasingly competitive environment.

Technology has gained recognition as an enabler for growingprofitable businesses and its progression can be directly linkedto the need to facilitate talent development and increase the

population of skilled IT professionals in the country.


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There is a greater demand for automated solutions in thecountry today, especially in the services sector like banks andtelecommunications companies due to a burgeoning middle

class community and a rural population with enhanced buyingpower.

Tele-density was growing at a rate of 35 per cent annually.

Tele-density has increased from 4.5 percent of the populationtwo years ago to about 40 percent at present.


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The number of subscribers of fixed and mobile telephony hasincreased from 8 million in 2003 to over 50 million in 2006and the market has the potential to reach 80 million mobile in 2

to 3 years.

The country has a large percentage of under-25 population thatdesires newer handsets and value-added services.


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The telecom sector has become a major employer of skilled jobsas its exponential growth has resulted in creation of 80,000 jobsdirectly and 600,000 jobs indirectly.

The major beneficiaries of the telecom sector's success story as70 per cent of the country's population has access to improvedTelecom services at substantially reduced tariffs.

Telecom sector constitutes 5% of the GDP and approximately6% of the total taxes collected by the Central Board of Revenue.


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The current revenue of Telecom Industry is Rs.200 million andit is expected to increase at a rate of 20% per annum.

The government receipts from the Telecom sector in the shapeof taxes, dividends and indirect revenues amount to Rs.80

billion per year.

Last year, mobile operators invested US$2 billion in Pakistan,54% of the total foreign direct investment in the country.


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A Malaysian telecommunication giant, Telekom Malaysia toinvest in Pakistan

The company plans to spend a total of $100 million on a massive project to connect 107 cities in Pakistan with 4,100 km ofnationwide optic fibre cable with a planned rollout over three

phases.

The investment will be made through TM's Pakistani subsidiary, broadband operator Multinet Pvt. Ltd, whose mission is toimprove the state of the country's communications solutions byleveraging TM's global network assets.


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Multinet will then be able to fulfill the needs of Pakistan's

high-growth telecommunication sector, offering services to

mobile phone operators, long-distance international operators

and internet service providers.

Multinet is currently providing broadband internet access via

wire and wireless media in 12 cities, including Karachi,

Lahore, Islamabad, Rawalpindi, Lahore, Faisalabad, Gujrat,

Multan, Sargodha, Sahiwal, Sialkot and Shaikhupura.


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Telenor has signed deals worth $750 Million with Nokia and

Siemens.

Pakistans telecom sector had received about Rs.550 billion

investment so far while Rs.300 billion is likely to be added to

the sector in the coming two to three years.


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Foreign Direct Investment in Telecom Sector(US $ million)


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Market Share of Mobile CompaniesAs of September 2006


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Power Generation Plants

Telecom Equipment Producers

Wires & Cables Industry

Glass & Copper Industries

Rubber Industry


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Transportation Industry

Silicon Industry

Telemarketing

1,50,000 mobile phone shops across Pakistan.

Including high end franchise show rooms & small kiosks in

markets and shopping malls.

Almost every modern age industry rely on IT & Telecom.


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Service Problem

Vague Marketing

Miscommunication in Sales

Hidden Charges

Lack of Customer Services


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Lack of progress in Institution Building.

Lack of long term business approach.

Continued political instability in the country.

Continued low literacy levels and degradation of education

standards.

Increased use of imported software.


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Development of packaged software.

Quality training and development.

Re-engineering and computerization.

Switch over to Urdu as a computer language.

World-wide growth of distance learning and education.

Establishment of Data Clearing House.


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Key features of Data Clearing House

Data Clearing Services

TAP File Processing

TAP File Conversion

Fraud Detection & Control

Management Reports

Data Transfer Services

Online Services

Roaming Agreement


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Mobile Number Portability (MNP) is the ability of a mobilesubscriber to retain his/her subscriber number when changingnetwork operators within a country.

MNP is not to be regarded as a subscriber service, which asubscriber can subscribe to. It is a network feature that allowsthe subscriber to keep a unique mobile phone number.

MNP is one of the important mechanisms to enhance faircompetition among different cellular mobile operators and toimprove customer service quality.


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Significant Benefits of MNP

It eliminates the cost of informing other parties of the numberchange by the porting user.

It eliminates the need to consult the directory enquiries and /orchange entries in their address books or computer systems bythe callers.

It increases competition, with significant benefits for all users, by lowering the cost to users of switching cellular mobileoperator.


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Significant Benefits of MNP

It is pertinent to mention that before changing from onecellular mobile operator to other cellular mobile operator,

customer must be satisfied that the service and the terms andconditions offered by the new operator are acceptable, becauseit is only the number that is being ported rather than the serviceassociated with the number.


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Globally, the telecom sector has been one of the most promisingsectors. Companies have been sinking in huge sums of money todevelop cutting-edge technology that would deliver everything from

Internet over mobile phones to telephone services over cable TV.

Telecom services gives a sense of pride and confidence to the people

as it provides instant connectivity across the country and the world.


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The future will belong to companies who adapt themselves quickly tochanges in technologies.

Operators will have to look at value-added services to improverevenue streams.

Customers will be benefited substantially with increase incompetition.


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it & telecom industry

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