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    2003Group1.doc.doc 2003Group1.doc.doc Document Transcript

    • CSE5806 1 Introduction ............................................................................................................................................2 2 Overview of the report ...........................................................................................................................2 3 List of references ...................................................................................................................................3 4 Overview of the work .............................................................................................................................4 5 Details by country..................................................................................................................................5 5.1 AFGHANISTAN.................................................................................................................................5 5.1.1 Historical overview .....................................................................................................................................5 5.1.2 Telecommunication in Afghanistan – General Overview.............................................................................6 5.1.3 Current industry structure and regulatory framework...................................................................................6 5.1.4 Recent and projected changes in the telecommunication environment.........................................................7 5.1.5 Recent Changes ............................................................................................................................................8 5.1.6 Recommendation...........................................................................................................................................8 5.2 BANGLADESH..................................................................................................................................9 5.2.1 Historical overview of telecommunication....................................................................................................9 5.2.2 Telecommunication industries.......................................................................................................................9 5.2.3 Operations....................................................................................................................................................10 5.2.4 Telecommunications in Bangladesh – General overview ...........................................................................11 5.2.5 Some Current & On Going Projects ...........................................................................................................12 Sl..........................................................................................................................................................................12 Name of the Project (Public Sector)....................................................................................................................12 Present Status.......................................................................................................................................................12 1............................................................................................................................................................................12 Greater Dhaka-Telephone project (Phase-II) total 67500 Lines Digital phones.................................................12 90% completed.....................................................................................................................................................12 2............................................................................................................................................................................12 Chittagong 39 000 line digital telephone project.................................................................................................12 Completed............................................................................................................................................................12 3............................................................................................................................................................................12 Installation of 20000 digital telephone lines .......................................................................................................12 80% completed.....................................................................................................................................................12 4............................................................................................................................................................................12 Completed............................................................................................................................................................12 5............................................................................................................................................................................12 Dhaka-Chittagong Optical Fibre link with Spur M/W Link and terminal station...............................................12 Tender Finilized...................................................................................................................................................12 Sl..........................................................................................................................................................................12 Name of the Project (private)...............................................................................................................................12 Present Status.......................................................................................................................................................12 1............................................................................................................................................................................12 Installation if 200 000 personal hand phone system in Dhaka............................................................................12 License procedure in progress.............................................................................................................................12 2............................................................................................................................................................................12 Build own and operate 300K Line Digital Telephone in Dhaka Multi Exchange Area .....................................12 Evaluation completed...........................................................................................................................................12 3............................................................................................................................................................................12 Introducing GMPCS service in Bangladesh........................................................................................................12 Iridium LLC is given temporary license for test purposes..................................................................................12 5.2.6 Proposed projects.........................................................................................................................................13 [4].........................................................................................................................................................................13 5.2.7 Transmission................................................................................................................................................13 Bangladesh is a riverine country and the country’s long route transmission systems are mainly composed of microwave, UHF and VHF radio links. The use of optical fibre is presently limited within some city areas for interconnecting local exchange and Remote Switching Units (RSU) in Multi Exchange Network. All these transmission systems are operated by BTTB. [6].................................................................................................13 5.2.7.A Present ongoing projects for Trunk Automatic Exchanges....................................................................13 5.2.7.B Optical Fiber Transmission.....................................................................................................................13 5.2.7.C Microwave ...........................................................................................................................................14 5.2.8 Data Communication Service .....................................................................................................................14 5.2.8.A Packet Switch Data Network (PSDN)....................................................................................................14 5.2.8.B (DSL) SERVICES.................................................................................................................................14 5.2.8.C International Private Leased Circuit (IPLC)...........................................................................................14 File: Mazed U:/Telecom management/ CSE5806 Page 1 of 35
    • CSE5806 5.2.9 Organisational Structure of BTTB...............................................................................................................15 5.2.10 Regulatory Frame Work............................................................................................................................15 5.2.11 Growth of Telephone in Bangladesh........................................................................................................15 5.2.12 Cellular Telecommunication in Bangladesh............................................................................................16 5.2.12.A Cellular technology in rural Bangladesh.............................................................................................16 5.2.13 Internet .....................................................................................................................................................17 5.2.14 Factors influencing telecommunications services industry.....................................................................17 5.2.15 Recommendations....................................................................................................................................18 5.3 PAKISTAN.......................................................................................................................................18 5.3.1 History of Telecom in Pakistan:..................................................................................................................18 5.3.2 General View of Pakistan Telecom:............................................................................................................19 5.3.3 Recent Changes :..........................................................................................................................................20 5.3.4 IT and Internet Status in Pakistan................................................................................................................20 5.3.5 Regulatory Frame Work .............................................................................................................................21 5.3.6 Conditions and Improvements:....................................................................................................................22 5.3.7 Measures already taken................................................................................................................................22 5.3.8 Deregulation :...............................................................................................................................................23 5.3.9 Cellular Operators.......................................................................................................................................23 5.3.10 International Communication Milestone:................................................................................................23 5.3.11 Key Developments:..................................................................................................................................24 5.3.1 Digital Divide:............................................................................................................................................25 5.3.2 Security Issues:............................................................................................................................................25 5.3.3 Recommendation:.......................................................................................................................................26 5.4 SRILANKA.......................................................................................................................................26 5.4.1 Historical overview of telecommunication..................................................................................................26 5.4.2 Telecom operators in Sri Lanka ..................................................................................................................27 5.4.3 Telecommunication in Sri Lanka – General................................................................................................28 5.4.4 Some ongoing telecommunication projects.................................................................................................29 5.4.4.1 PAN-Sri Lanka Project...........................................................................................................................29 5.4.5 Future Plans.................................................................................................................................................29 5.4.6 Proposed Projects.........................................................................................................................................30 5.4.7 Regulatory Framework ...............................................................................................................................30 5.4.8 Growth of Telecommunication In Sri Lanka...............................................................................................31 5.4.9 Mobile Telecommunication in Sri Lanka....................................................................................................32 5.4.10 Internet Service........................................................................................................................................32 5.4.11 Factors Influencing Sri Lankan Telecommunication.................................................................................33 5.4.12 Recommendation ...................................................................................................................................33 5.5 Other significant aspects ................................................................................................................34 6 Discussions of the Task.......................................................................................................................34 1 Introduction Telecommunication is one of the key factors in developing south asian countries. In order to compete with the major developed nations, developing countries are trying to overcome the limitation of their telecommunication infrastructure. In this report we are mainly concentrating on four developing countries, namely Bangladesh, Srilanka, Pakistan and Afghanistan. We will be elaborating the existing telecommunication facilities and all aspects regarding telecommunication in these countries. 2 Overview of the report In this report we try to investigate on the following issues of the above mentioned countries overall telecommunication as required, such as • Historical overview File: Mazed U:/Telecom management/ CSE5806 Page 2 of 35
    • CSE5806 • Overview of current industry structure and regulatory framework. • Recent and projected changes in telecommunication environment. • Growth of telecommunication and key services available. • The factors influencing the telecommunication industry. 3 List of references A. The Telecom Mosaic : assembling the new international Structure/Robert R. Bruce , Jeffrey P. Cunard D. Director. B. Telecommunications convergence: bridging the gap between technology and services/ Stephen Shepard 2nd Edition. Afghanistan 1. CIA World Fact Book http://www.cia.gov/cia/publications/factbook/geos/af.html 2. Ministry Of Communication Afghanistan (http://www.moc.gov.af) 3. Gsmworld.com http://www.gsmworld.com/roaming/gsminfo/cou_af.shtml 4. Telecommunication Development Strategy, from the Ministry of Communication Afghanistan, by the Minister of Communication Mr Mohd. Masoom Stanekzai.(October 2002) Bangladesh 1. http://www.saarcnet.org/newsaarcnet/govtpolicies/bangladesh/telecommu.htm 2. http://www.aptsec.org/satrc/fifth-satrc/presentations/INF03_BackgroundDoc(Panel %20Discussion)SATRC5.doc 3. www.bttb.net/home/main/abt_bttb/background.htm 4. www.itu.int/itudoc/telecom/tlc99/nat_rep.pdf 5. http://www.eb2000.org/ITSR6.htm 6. http://www.saarcnet.org/newsaarcnet/publications/sagq/chapter4/bangladesh.html 7. www.bttb.net/home/main/abt_bttb/ overseas_communication_services.htm 8. www.bttb.net/home/main/abt_bttb/ regulatory_framework.htm 9. http://www.itu.int/itunews/issue/2002/10/southasia.html 10. http://bangladesh-web.com/news/may/18/c18052003.htm 11. www.b2bdatacorp.com/yMiddleEast/afghanistan.pdf 12. Ken.fletcher@csse.monash.edu.au 13. www.aptsec.org/seminar/meeting-2001/ ecs2001/EC-06-A-BTTB-BGD.ppt 14. www.grameenphone.com Srilanka 1.http://www.slt.lk/inpages/aboutus_pages/history.htm 2. http://www.itu.int/ITU-D/gender/documents/Asia- PacificlWrkshopKorea/CntryReportSriLanka.pdf File: Mazed U:/Telecom management/ CSE5806 Page 3 of 35
    • CSE5806 3. http://www.trc.gov.lk/projectlist.htm 4.http:// http://www.dialog.lk/corporate/about_dialog.html 5. http://www.mobitellanka.com/website/About_Us/about_us.htm 6. http://www.celltel.lk/ 7. www.gsmworld.com 8. http://park.org/Japan/TokyoNet/aip/COUNTRY/SRILANKA/BUSINESS/telecom.html 9. http://www.unescap.org/wid/04widresources/11widactivities/01ictegm/waragoda.pdf Pakistan 1.http://www.the-south-asian.com/April%202003/Pakistan%20IT-Telecom%20markets- 1.htm 2. http://216.152.71.161/pakistaninternet.html 3. http://www.pta.gov.pk/telecomact/chapter2.htm 4. http://www.privatisation.gov.pk/telecom/history.htm#5 5. www.pakistaneconomist.com/page/issue22/feature.htm 6. http://www.pta.gov.pk/about/introduction.htm 7. http://www.pta.gov.pk/investment/telecom-scenarion.htm 4 Overview of the work Our task was to do a detail study on the above-mentioned countries. Our main goal was to find data about the background of the telecommunication industry of each of the above-mentioned countries. This report would serve as a guide to other forms of industries for certain purposes such as investments. We as telecommunication professionals are investigating each aspect in detail to determine if or not the current region is feasible. Before starting the assignment we drafted a plan. The plan describes each of the member’s task and how it was coordinated. File: Mazed U:/Telecom management/ CSE5806 Page 4 of 35
    • CSE5806 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Exchange Assignment Investigation Investigation Investigation Organising Rehearsal of of the of the first of matters of the final the of the contact group three key four, five matters and information presentation details members. matters. and six. additional we have and discussion. and submission compilation of the final of the final report. draft. 5 Details by country 5.1 AFGHANISTAN 5.1.1 Historical overview Afghanistan gained independence from the British in 1919. Inundated by war for more than two decades, Afghanistan is the one of the most invaded countries and obviously a little to say about their telecommunication achievements. The telecommunication industry today is very weak in Afghanistan. Over years of war and destruction, only less than 40,000 land telephone lines are in use [2]. Much is not known about the telecommunication industry during those years of hardship. However after a new government took power in 2001 many new projects seem to be introduced to stimulate the economic and telecommunication growth of the country. However, the entire telecommunication system needs to be built from ground up. Afghanistan has a total population of 25 million people. There would only be one working telephone for every 625 people (Teledensity 0.16%). Many of the lines in service are aging analog systems, some utilizing step-by-step exchanges. In the capital Kabul there are both analog and digital systems in use. The two networks are not interconnected dynamically to each other. Kabul has the greatest number of installed and active lines. File: Mazed U:/Telecom management/ CSE5806 Page 5 of 35
    • CSE5806 5.1.2 Telecommunication in Afghanistan – General Overview Telephones - main lines in use: 40,000 [2] Telephones - mobile cellular AWCC & Recently Alcatel operators: Telephone system: - Very limited telephone and telegraph service - In 1997, telecommunications links were established between Mazar-e Sharif, Herat, Kandahar, Jalalabad, and Kabul through satellite and microwave systems. - International: satellite earth stations - 1 Intelsat (Indian Ocean) linked only to Iran and 1 Intersputnik (Atlantic Ocean region); commercial satellite telephone center in Ghazni. Radio broadcast stations: - AM 7 (6 are inactive; the active station is in Kabul), FM 1, shortwave 1 (broadcasts in Pashtu, Afghan Persian (Dari), Urdu, and English) (1999) Television broadcast stations: - At least 10 (one government-run central television station in Kabul and regional stations in nine of the 32 provinces; the regional stations operate on a reduced schedule; also, in 1997, there was a station in Mazar-e Sharif reaching four northern Afghanistan provinces) (1998) Internet Service Providers (ISPs): 1 (2000) (From the CIA World Fact book,) [1] [2] 5.1.3 Current industry structure and regulatory framework. Afghanistan is finally through the transitional government and into the first elected government. This new elected government is now making positive steps to ensure the growth of the country by developing policies for each sector of development. There is no official regulatory framework for the telecommunication sector. The government has planned on creating a Regulating Authority in the near future. According to the Afghan Ministry of Communication they have the ability to - 1. Determine the types of licenses that will be granted and the basis for them.[2] 2. Determine and make available to all interested parties, the procedures and formalities under which licenses shall be obtained and renewed, including the timescales for the grant of licenses.[2] 3. Determine the terms and conditions upon which licenses shall be granted, provided that the conditions shall be the same or substantially the same for each license of the same type.[2] 4. Allocate the bandwidth on the radio frequency spectrum under which each licensee may provide a telecommunications service in accordance with the radio frequency plan for Afghanistan.[2] File: Mazed U:/Telecom management/ CSE5806 Page 6 of 35
    • CSE5806 5. Publish telecommunications policy as it affects licenses.[2] There are currently two telecom Industry operating, which are: Telecom Development Company Afghanistan Ltd (TDCA) - Network Information [3] Operator Name Telecom Development Company Afghanistan Ltd Network Name TDCA Network Type GSM 900 Handset Code TDCA Network Code 412 20 Network Status Provisional Member Telephone Systems International Inc (AWCC) - Network Information [3] Operator Name Telephone Systems International Inc Network Name AWCC Network Type GSM 900/1800 Network Code 412 01 Network Status Live April 2002 • TDCA An international consortium of multiple companies owns TDCA. Aga Khan Fund Economic Development holds 51% followed by Monaco Telecom International 35% and US-based MCT CORP 9% owns the majority. Finally France’s Alcatel holds 5% and also provides financing for equipment. [3] • AWCC The Ministry of Communication, Telecommunications Systems International and the AWCC are joint ventures of this project. AWCC currently provides network coverage for Kabul, Heart and Mazar e Sharif. The total subscribers are approximately 11,000 and most of it is concentrated in the capital Kabul. [3] 5.1.4 Recent and projected changes in the telecommunication environment. Afghanistan a bruised country in many ways, eventually a bruise will heal in time. Many developments are projected to heal the wound. The government is carrying out many projections for the future and current deals. Afghanistan is a greenfield to many investors because of its limited growth and large base of unemployed manpower. According to the Telecommunication Development Strategy written by the communication minister himself Mr. Masoom Stanekzai, there are many new projections for the future of Afghanistan. According to the report there are as many as 13 areas, which are projected ideas for the future of telecommunication in Afghanistan. o To restore and upgrade local telephone services in key cities such that to improve efficiency and to improve daily lives of the people. Automating customer billing File: Mazed U:/Telecom management/ CSE5806 Page 7 of 35
    • CSE5806 is one area needing improvement. Switching capacity of extra 50,000 lines is needed to further the development. Interfacing of analog systems with digital systems is also an important factor. o To link fully-meshed national and international satellite networks. There has to be at least a minimum level of communication between the biggest cities in Afghanistan and the world. o The need to expand and improve transmission links to neighboring states. There is a strong need to establish terrestrial networks to neighboring Pakistan. Ultimately a national backbone would be needed. o To install VSAT terminals at all local post offices to provide access to 423 administrative districts in the country. o The state of government communication between departments is very poor, hence the need for a backup emergency telecommunication mobile system for the government. o A long-term plan to provide internet access to the Afghanistan community. o A plan for ICT capacity planning, by establishing a core capacity plan to the governments ICT infrastructure. The need to develop basic ICT strategy for government on needs and corresponding phased plan for its implementation. [2][4] 5.1.5 Recent Changes There have been many improvements in terms of communication in Afghanistan since the American occupancy during the Taliban war. They are: • Completion of National Telecommunications Policy. • Successful completion of National GSM Tender. • Rehabilitation of Telecom Training Centre. • Restoration of approximately 45% of existing fixed network in Kabul city. • Installation of VSAT satellite services for domestic long distance traffic in five major cities currently in progress (Heart, Kabul, Kandahar, Kunduz, Jalalabad). • Commissioned 5000-line digital switch in Kandahar. • Concluded agreement with ITU to set up spectrum management and frequency planning department. • Concluded agreement with ITU for technical assistance related to drafting of the new Telecommunications Law. • ICT centers being set up in Kabul and provinces (UNDP). • Recently regained the Afghanistan “.af” domain name. • Established Ministry of Communication web site (www.af-com-ministry.com) • Alcatel Recently became the second GSM provider. [2] 5.1.6 Recommendation File: Mazed U:/Telecom management/ CSE5806 Page 8 of 35
    • CSE5806 The society is dispersed in many areas and with 423 administrative districts; there is a lot of confusion. Afghanistan needs to put its communication services in order if it is to bring its people back to some form of order. The government is unable to perform simple duties due to the lack of communication between departments. Hence reconstruction efforts are being hampered. Now that the world has recognized Afghanistan as a country, many new businesses and countries would want to open business links. Telecommunications need to be in order for such parties to be interested to do business with. In short the telecommunication will spur economic growth. National and civil security can also be coordinated to perform much more efficiently. And finally Aid agencies will be able to perform in a much better coordinated area to distribute humanitarian services. 5.2 BANGLADESH 5.2.1 Historical overview of telecommunication The First touch of telecommunication starts with Telegraph branch of the Posts and Telegraph Department in 1853 during the British colonial period, which was afterwards regulated under the Telegraph Act of 1885. This was reconstructed in 1962 as Pakistan Telegraph and Telephone Department. After the independence of the People’s Republic of Bangladesh in 1971, Bangladesh Telegraph and Telephone Department was set up under the Ministry of Posts and Telecommunications to run the Telecommunication Services in Bangladesh. This was converted into a corporate body named Bangladesh Telegraph and Telephone Board after proliferation of Bangladesh Telegraph and Telephone Board Ordinance No. XLVII of 1975. In pursuance of Ordinance No. XII of 1979 circulated on 24th February 1979, Bangladesh Telegraph and Telephone Board (BTTB) was again converted into a Government Board [1]. Until 1989, BTTB was responsible for providing, maintaining and developing telecommunications facilities and services, both within and outside the geographical boundary of the country. In 1989, the telecom sector was liberalized and private sector participation was allowed. [2] At this moment BTTB is providing basic telecommunication services through out the country and also providing carriers to communicate with the outside world. BTTB is also providing some value added services as Dial-Up and Leased Line Internet services, International Private Leased Circuit (IPLC) services, Digital Subscribers Line (DSL), Telex Services and Packet Switch Data Network (PSDN) services. [3] 5.2.2 Telecommunication industries Telephone Shilpa Sangstha (a telephone factory) is a joint venture company, which produces analog switches and analog and digital telephone sets. Bangladesh Cable Shilpa (a cable factory) is another joint venture company that produces copper cables of different sizes. In addition, there are small private companies that produce telephone cables, drop wire of small sizes and some accessories. [4] File: Mazed U:/Telecom management/ CSE5806 Page 9 of 35
    • CSE5806 There are number private operators doing business in mobile phone, broadband service etc. We will describe their functionality below. 5.2.3 Operations The following table shows a list of telecom operators in Bangladesh. Operator Functionality Public Sector Telecom 1 Bangladesh Telegraph & Telephone Telecom Carrier, Basic Board (BTTB) Telephony service, ISP & other value added services Private Sector Telecom 1 Pacific Bangladesh Telecom Ltd (PBTL) Cellular Service (Amps &CDMA-800) 2 Grameen Phone Limited Cellular Service (GSM-900) 3 Sheba Telecom (pvt) Ltd Rural Telecom , Cellular (GSM-900) 4 Bangladesh Rural Telecom Authority Rural Telecom Service (BRTA) 5 TM International Bangladesh Ltd Cellular Service (GSM-900) (AKTEL) 6 Bangladesh Telecom (pvt) Ltd Paging, Trunking & Riverine Telecom (BTL) 7 SITA Lease Line Data Service Source : BTTB December 1999 [4] File: Mazed U:/Telecom management/ CSE5806 Page 10 of 35
    • CSE5806 5.2.4 Telecommunications in Bangladesh – General overview Description Unit Total Telephone in use in Bangladesh 6,02986 BTTB ( T&T) 4, 74,322 BTTB –Urban 411,427 BTTB – Rural 57,077 Private Telecom 1, 28, 664 Tele density 0.50 % Cellular Users 212,200 (April, 2000) Card Phone in Use 1, 381 Public Call office 630 Telex Subscribers 1,600 Paging & radio Trunking Subscribers 7000 International Voice circuit : 2,107 International Trunk Exchange 3 Total International Circuit 3936 Nation Wide Dialing ( NWD) Circuit 21930 Switching 61% Transmission 75% V Sat 50 ISPs ( Plus private Organizations ) File: Mazed U:/Telecom management/ CSE5806 Page 11 of 35
    • CSE5806 Ground Satellite Station 4 Expected demand for Telephone 1, 72,095 Source : BTTB December 1999 [5] 5.2.5 Some Current & On Going Projects S Name of the Project (Public Sector) Present l Status 1 Greater Dhaka-Telephone project (Phase-II) total 90% 67500 Lines Digital phones completed 2 Chittagong 39 000 line digital telephone project Completed 3 Installation of 20000 digital telephone lines 80% completed Dhaka Standard “A” Satellite Earth Station Japan Completed 4 Completed 5 Dhaka-Chittagong Optical Fibre link with Spur M/W Tender Link and terminal station Finilized [4] S Name of the Project (private) Present Status 1 Installation if 200 000 personal hand phone License system in Dhaka procedure in progress 2 Build own and operate 300K Line Digital Evaluation Telephone in Dhaka Multi Exchange Area completed 3 Introducing GMPCS service in Bangladesh Iridium LLC is given temporary license for test purposes [4] File: Mazed U:/Telecom management/ CSE5806 Page 12 of 35
    • CSE5806 5.2.6 Proposed projects 1) Installation of 300 000 telephone lines, cable and related transmission links in the country. 2) Up gradation of existing system. 3) Establishment of International Telecommunication link through SEA-ME-WE-3 and other submarine cable. 4) Installation of Interface equipment and transmission link for interconnection between BTTB and Private Telecom Operators. 5) Introduction of SDH (Synchronous Digital Hierarchy) system in the transmission network. 6) Introduction of both broad and narrow band ISDN (Integrated Service Digital Network) service in the telecommunication sector. 7) Introduction of cellular telephones by BTTB. 8) Introduction of Value-Added Services, namely: (a) Videotext (b) Electronic Mail (c) Video [4] 5.2.7 Transmission Bangladesh is a riverine country and the country’s long route transmission systems are mainly composed of microwave, UHF and VHF radio links. The use of optical fibre is presently limited within some city areas for interconnecting local exchange and Remote Switching Units (RSU) in Multi Exchange Network. All these transmission systems are operated by BTTB. [6] 5.2.7.A Present ongoing projects for Trunk Automatic Exchanges BTTB has taken two projects for installation of TAX/Local exchanges. Under the project titled "Installed of 3 Tax cum local exchange" through own finance BTTB has installed three “TAX” at three major districts. Eight TAX/Sub-TAXs will be installed at eight districts against a separate project titled "Installation of telephone exchange at different district headquarters" under supplier's credit from PR China. BTTB is currently implementing some transmission links on optical fibre with latest SDH digital multiplexing and other transmission links on digital radio with SDH and PDH multiplexing. [5] 5.2.7.B Optical Fiber Transmission Optical fibre transmission links are under implementation through three projects. "Dhaka- Chittagong Optical fibre project" under French protocol. "Installation of 200 KL telephone lines in Bangladesh" under telecom bond/GOB (Govt of Bangladesh) finance and "Installation of digital telephone exchanges at different district towns" under suppliers credit from PR China. With the completion of above projects Dhaka and Chittagong, Dhaka and Bogra will be connected through high capacity optical fibre links resulting in improved telecom services between different parts of the country. File: Mazed U:/Telecom management/ CSE5806 Page 13 of 35
    • CSE5806 [5] 5.2.7.C Microwave Digital microwave long distance transmission links will be implemented through three projects namely "Installation of digital telephone exchanges at different district towns" under suppliers credit from PR China, "Installation of 200KL telephone lines in Bangladesh" under telecom bond/GOB (Govt of Bangladesh) finance and "Dhaka-Chittagong optical fibre project" under French protocol and the number of microwave hops under those projects are 1920 and 3 respectively. Most of the district town will be under digital transmission after completion of the first phase of above projects. [5] 5.2.7.D Mobile phone BTTB has plan to come in cellular market with larger capacity. It’s a 150 million dollar project initially. They have plan to sell some “Bond” in the market to raise up this money. Already they called an international tender and evaluation is under process. 5.2.8 Data Communication Service 5.2.8.A Packet Switch Data Network (PSDN) Bangladesh T & T Board has installed an Packet Switched Data Network at Dhaka & five other cities namely Chittagong, Rajshahi, Bogra, Khulna, and Sylhet. This network caters services for three types of subscribers. These are X.25 leased line, X.28 leased and X.28 dial up subscriber. Inter-city connectivity has been provided through Microwave (existing analog and digital) and international gateway connectivity has been obtained through Mohakhali Satellite Earth Station taking one 64 kbps circuit with VSNL (Videsh Sanchar Nigam Limited), New Delhi. [ 7] 5.2.8.B (DSL) SERVICES Very recently BTTB has installed DSL nodes at 5 exchanges in Dhaka and 4 other places namely Chittagong, Sylhet, Khulna and Bogra. Through this network BTTB is providing high speed point to point data line (64 Kbps to 2048 Kbps) using voice grade copper cables. Already some of the Banks and Corporate Offices have taken this line. DSL modems sell and service by a local private company named Systems and Services. The performance of this network is very much satisfactory. [7] 5.2.8.C International Private Leased Circuit (IPLC) BTTB is also providing high-speed international point to point data circuit for corporate networking. An IPLC (international private leased circuit) is a point-to-point private line used by an organization to communicate between offices that are geographically dispersed throughout the world. An IPLC can be used for Internet access, business data exchange, video conferencing, and any other form of telecommunication. [ 5] File: Mazed U:/Telecom management/ CSE5806 Page 14 of 35
    • CSE5806 5.2.9 Organisational Structure of BTTB Bangladesh T & T Board is a government establishment under the Ministry of Post and Telecommunication (MOPT). The Board is headed by the Chairman with 4(Four) full time members and 3(Three) part time members under him. The government of People’s Republic of Bangladesh gives their appointment. [5] 5.2.10Regulatory Frame Work The Ministry of Posts & Telecommunications (MOPT) holds the responsibility of sector regulation. The Telegraph Act of 1985 is the primary law governing the sector and granted the government exclusive power to establish and provide all telecommunications services and products. The Wireless Telegraphy Act of 1933 governs the operation of one way Radio Communications, Paging and Radio services. The BTTB Ordinance of 1979 provided BTTB the monopoly rights and powers for issuing license for telecommunications and wireless services. In October 1995, Government of Bangladesh (GOB) amended the BTTB Ordinance, 1979 and transferred the regulatory authority from BTTB to MOPT. Increasing participation of Private Sector Operators in the Telecommunication Sector in Bangladesh has made it expedient to provide for the establishment of an independent Commission. Establishment of an Independent Commission for the purpose of the efficient regulation and development of the telecommunication system in Bangladesh. In 1999 MOPT formed a regulatory body naming Telecommunication Regulatory Board (TRB). Bandwidth allocation/frequency distribution and cable TV operator license provide by this regulatory body. [8] 5.2.11 Growth of Telephone in Bangladesh The growth of telephone exchange capacity was restricted due to non availability of necessary investment for the Government resource and the demand was artificially managed / restricted by raising the installation charge and thereby making it unaffordable by the ordinary people. The growths of telephone were as follows: 1 0.9 0.8 0.7 0.6 Total 0.5 Fixed 0.4 Mobile 0.3 0.2 0.1 0 1992 1994 1996 1998 2000 2001 2002 Fig 2 : Fixed and Mobile subscriber per 100 person in Bangladesh. [9] File: Mazed U:/Telecom management/ CSE5806 Page 15 of 35
    • CSE5806 The graph shown below, gives a good scenario of the current status of the four countries. Bangladesh and Afghanistan still struggling to provide optimum telecom facilities to general people. Srilanka and Pakistan is well ahead of that point of view. 5 4.66 4.5 Telephone per 100 people 4 3.5 3 2.48 2.5 2 1.5 1 0.55 0.5 0.1 0 Bangladesh Pakistan Sri Lanka Afghanistan Fig – Teledensity of Bangladesh, Pakistan Srilanka and Afghanistan [10] [11] 5.2.12 Cellular Telecommunication in Bangladesh Pacific Bangladesh Telecom Limited (PBTL) started cellular Mobile Telephone Service since 1989 with AMPS system. Recently they have sifted to CDMA technology. The other three Operators Grameen Phone Limited (GP), TM International (Bangladesh) [TMIB] and Sheba Telecom are providing Cellular service with GSM technology. 5.2.12.A Cellular technology in rural Bangladesh Grameen Telecom (GT) is dedicated to extending the benefits of telecommunications to the rural people of Bangladesh. It is a not-for-profit company and holds 32 per cent of Grameen Phone that was awarded a nationwide licence for GSM 900 cellular services in 1996. Grameen Phone has expanded rapidly since launching service in March 1997. By December 2001, it had 464 000 subscribers around 70 per cent of the country total. GT hopes to extend telecommunication services to rural areas by leveraging its part ownership of Grameen Phone. Village Phone (VP) is the mechanism GT is using. Under a micro credit programme provided by a GT sister institution (Grameen Bank), a villager can purchase a mobile phone and become the VP operator in their village. The operator’s income is derived from the difference between the airtime charges paid by the customers and the amount due to GT. VP serves as an attractive source of revenue. Increased labour mobility resulting in increased rural-urban migration as well as immigration has led to an enhanced demand for telephone services. A study on the benefits of VPs claims that the predominant economic benefit of using VPs is the facilitation of the flow of income and wealth between overseas workers or workers in urban cities like Dhaka and their families in rural villages. VPs can also be used to File: Mazed U:/Telecom management/ CSE5806 Page 16 of 35
    • CSE5806 • Improve overall living standards as telephones provide access to services such as police, health assistance, agricultural information and family planning offices. • To obtain market information that allows villagers to negotiate better prices for their products. Access to the Internet, electronic fund transfer and other value-added services are in the pipeline. [9] 5.2.13 Internet Out of 64 Districts, Internet services are available only in 6 major District Headquarters. BTTB is planning to gradually roll out an IP network up to the 64 district headquarters. Title of this project is – Expansion of Nationwide Internet and Data Network Project. Salient features of the project are: • Establishing a national IP gateway • Interconnecting the local ISPs • Connecting the ISP’s with the PSTN through E-1 trunks • Introducing VOIP [13] In Internet use, 1.53 Internet user per 1,000 people against 0.21 by Myanmar, the lowest in the region. The Maldives topped the list with 53.76, followed by India with 15.91, Bhutan with 14.46, Sri Lanka with 10.56, Pakistan with 3.45 and Nepal with 2.64. [10] 100000 80000 60000 User 40000 20000 0 June '97 June '98 June '99 June '00 June '01 Fig 3 : Internet user growth in Bangladesh. [13] 5.2.14 Factors influencing telecommunications services industry • Population • Political Instability • Lack of Investment/Aid. • Natural calamity (Flood, cyclone etc.) • Lack technical people for management. • Bureaucracy. • Labor union sometime goes for strike. File: Mazed U:/Telecom management/ CSE5806 Page 17 of 35
    • CSE5806 • Lack of Investment and planning. • Total revenue earned by BTTB is returned back to the Finance Ministry. So till now BTTB cannot use its earned money to develop its infrastructure. • Rural telecom. 5.2.15 Recommendations Government of Bangladesh should take some steps for developing the National telecom infrastructure. These tasks should include: • Privatised the government owned BTTB or at least autonomous body should be established to run the company. • Encouraging private sector investment, through tax holiday and relaxing the regulatory policies. • Ensure that information technology will be available to as many citizens as possible at affordable prices. • Increasing the teledensity. • Improve government procurement. • Support the private sector through foreign consulate in order to penetrate IT global market and earn the foreign currency for Bangladesh. 5.3 PAKISTAN 5.3.1 History of Telecom in Pakistan: Pakistan came into being in 1947. Pakistan’s inherited telecom structure was quite premature in 1947. The two provinces Punjab and Sindh were developed up to a certain level. However, there was virtually no or very less Tele-communication in the areas of Baluchistan and Northwest Frontier province. Especially in Baluchistan due to its rugged and mountainous region it was practically very hard to lay phone line cables by technology available then. Pakistan inherited post, telegraph and telephone [PTT] department from British rule. It comprised of 7000 lines and primitive switches for the communication to take place. It was in 1962 that the PTT was severed into three main streams, Post, Telegraph and Telephone departments. Still, they were public owned and though more individual attention was given to each of the three communication portals still the monopoly was prohibiting any advances in technology. Finally, in 1991 PTC Act was passed which opened the doors for private investors and new technologies. Data network services, paging and small exchanges were allowed to be taken on by the Act. These were non-basic services and PTC had no prior experience to handle these new trends. File: Mazed U:/Telecom management/ CSE5806 Page 18 of 35
    • CSE5806 By 1994 the private companies were pressurizing PTCL (Pakistan telecommunication corp. Ltd) to include voice and e-mails in their basic services. The result was an ordinance passed in 1994, which defines the participation level and role of the private companies in the communication industry. National telecom corp. was given the role to provide services to the public sector. (Defense and Govt.) The golden time of Pak telecom begins after 1996. Basically it was a learning campaign started by PTCL, encouraging the professional and technical labor to learn so that the new trends can be caught up with. However, the indigenous market was almost forgotten and in-house development came to almost a stall. Though some small companies were trying to develop local digital exchanges yet it was a task deemed far from possible due to the negative competition offered by PTCL. By 2000 it was not the landlines competition anymore, the world had gone wireless, the drought of talented telecom people had started in Pakistan. Yet there was nothing that the government was doing to promote the in-house training and education. By 2000 large competitors had entered the market. Paktel, Instaphone and Mobilink are a few successful ones. In their competition PTCL advanced a subsidiary called Ufone. PTCL is now trying to enter the area of hybrid fiber cable, which is probably the biggest market winner decision yet by PTCL. Due to the low cost of fiber optic cables being manufactured locally the dream of fast and efficient communication is being turned into reality. 5.3.2 General View of Pakistan Telecom: PTCL then obtained an extension on the deregulation of the industry from December 2002 to March 2003. A few statistics of the Pak telecom as they stand in 1998 compared with 2003 Infrastructure Dec. 98 March 2003 Network Capacity [ALI] 3.52 (M) 4.4 Million Telephones in service 2.82(M) 3.69 Million [Allis] Total Population 130 million 145 million Teledensity June 1998 2.20 % 2.54- 2.73 % Pending demand NA 244,000 Network Digitalization 78.27% 100% June 1998 Fiber Optic cable length 3902 km 6204 km. No. of exchanges installed 42 in 1997-98 Total exchanges 2577 2700 File: Mazed U:/Telecom management/ CSE5806 Page 19 of 35
    • CSE5806 “ PTCL is listed on the Karachi Stock exchange and comprises about 30% of the weight- age of the KSE 100 index. In 1995 under the Chairmanship of Mian Javed, the PTCL in its first four years installed nearly 2 million telephone lines, about 200 percent increase in total capacity. Today, the number of working lines has been raised to about 2.82 million. The fixed line telephone density is 2.2 telephones per thousand people, which is higher than in some countries of the region. The number of telephone lines is expected to total nearly 4 million within the next 2 years. In addition PTCL started a very aggressive roll out of the conversion of the old analog telecom technologies to digital telecom including installation of Fiber Optic backbone between Karachi and Lahore in the initial phases.” [1] PTCL still maintains monopoly over voice calls. Due to the voice over Internet protocols, this scenario may not hold for long. PTCL is reluctant to open up in this area because of the anticipated loss in the market share by it. The call prices will come down and the calls made would significantly increase resulting in a bitter competition with the rivals. National Telecom Corp. that inherited 5% of the PTC shares has a national microwave trunk backbone. NTC, however only provides services to government and defense domestic population. International calls are made using PTCL services. 5.3.3 Recent Changes : The latest project is being handled by special communication organization, which is responsible for the new communication infrastructure being laid in Azad Kashmir and thereby digitally connecting Azad Kashmir to the rest of the worlds. A fiber optic backbone was implemented with the help of Telstra, Australia and Designman an indigenous company. “Other private sector companies now actively involved in the expansion and development of telecom services are Tellabs and Newbridge-Alcatel for the Digital Cross-Connect Switches, and LTE Pakistan’s own Fiber-Optics cable manufacturer. Currently all major metropolitan Exchange-to-Exchange links are Fiber-Optic. “ [1] 5.3.4 IT and Internet Status in Pakistan Information and Communication Technologies have the potential to significantly contribute towards the promotion of sustainable growth of economy. By developing information infrastructure and effectively utilizing information and communications technologies developing nations can narrow the gap in economic and social development and prevent it from widening. [2] There is need to develop IT disciplines and plan approach for implementation of information technology infrastructures. The IT market in advance countries like; USA, Canada, UK, Germany, Australia, Japan and far east has matured and still growing faster. The E-Mail and Internet network development in Asia region continues to be slow. However developments efforts around the region demand for added capacity, increased access and better network to File: Mazed U:/Telecom management/ CSE5806 Page 20 of 35
    • CSE5806 support new services for Internet users. Around the Globe Information technology and telecom products and services are in heavy trade. This volume is estimated to be over US$ 1000 billion p.a. around the world. The IT growth rate is about 50% p.a. (compounded annual growth rate including growth in Internet, E-Mail). Asia region has to be ready for about 100% growth rate for next few years in this area. [2] 5.3.5 Regulatory Frame Work Pakistan Telecommunication Authority was formed under the Pakistan Telecommunication Reorganization Act, 1996. It is a regulatory body, which regulates the establishment, operation and maintenance of telecommunication services. It also promotes and protects the interests of telecommunication service providers and users, ensuring that the consumers get high quality services at competitive prices, with a reasonable range of choice. [6] Functions of the Pakistan Telecommunication Authority: 1. Regulate the establishment, operation and maintenance of telecommunication systems and the provision of telecommunication services in Pakistan; 2. Receive and expeditiously dispose of applications for the use of radio-frequency spectrum; 3. Promote and protect the interests of users of telecommunication services in Pakistan; 4. Promote the availability of a wide range of high quality, efficient, cost effective and competitive telecommunication services throughout Pakistan; 5. Promote rapid modernization of telecommunication systems and telecommunication services; 6. Investigate and adjudicate on complaints and other claims made against licensees arising out of alleged contravention of the provisions of this Act, the rules made and licenses issued there under and take action accordingly; 7. Make recommendations to the Federal Government on policies with respect to international telecommunications, provision of support for participation in international meetings and agreements to be executed in relation to the routing of international traffic and accounting settlements. 8. Perform such other functions as the Federal Government may from time to time, assign to it. Licenses are issued for a number of services through a procedure defined in the Pakistan Telecommunication (Reorganization) Act 1996. The spectrum allocated for this purpose is in line with ITU-R recommendations and the National Spectrum Policy, issued by "Frequency Allocation Board" from time to time. An applicant is required to submit a proposal on the relevant application form as per issued guidelines. [6] File: Mazed U:/Telecom management/ CSE5806 Page 21 of 35
    • CSE5806 5.3.6 Conditions and Improvements: Pakistan was lagging in the telecom race, however, is catching up very fast. New areas are being explored and non-basic services are being either outsourced or privatized. Areas like fiber optic and ISDN have already matured. Dedicated business lines and Cable modems are available to businesses. With the advent of information technology 1.25 million people are estimated to be connected to the high speed Internet by 2008. Satellite service is one more of the services PTA is proud to put forward. “Pakistan is constructing fiber optic links in the length and breadth of the country and also participated in international fiber optic project like SEA ME WE III, TAE and ECO. Program is being initiated to introduce ATM switches and SDH fiber links to connect the country with Global Information system.”[2] “The Government on recommendations of Ministry of Communications, PTA and PTCL considered the telecom tariff proposals and announced the following concessions and incentives to promote Software and Internet services: a) Reduction in leased line rates for software and Internet. b) Special packages for educational and researches institutes. c) Package of unlimited local calls for Internet users. d) Waiver of central excise duty on lease lines for Internet & e) Exempted Internet from 5-minute pulse. “ [2] 5.3.7 Measures already taken (a) 20-50% reduction on the leased lines for ISPs, and software exporters. (b) Concessions to Schools, Universities & Institutions, 50% up-front and 20 free hours for Internet usage. (c) Packages of unlimited local calls. (d) Major cities, (about 50) of the country are already connected with fiber optic/digital cross connect system. (e) To segregate telephony and Internet traffic to bring Internet away from time metering. (f) Second high capacity fibre optic link commissioned in 1998 (catering 20 new cities). (g) Investment of US$ 40 (M) was made in SEA-ME-WE-III project (operational in July 1999) to enhance capacity. (h) Internet infrastructure project (phased over three years 1998-2000) costing Rs.700 million launched to cater for 500,000 customers (90 cities including all district towns). (i) Currently about 100 licenses stand issued out of them 50 are operating the service. (j) Custom duty on the telecom & Internet equipment reduced. (k) Waiver granted from 25% CED on leased lines given to licensed ISPs & Software.” [3] File: Mazed U:/Telecom management/ CSE5806 Page 22 of 35
    • CSE5806 5.3.8 Deregulation : “In 1992, the Government, through the Ministry of Communication, appointed a high-quality advisory consortium headed by Bear Stearns & Co. and consisting of Coopers and Lybrand and Latham & Watkins to study the telecom sector in general and PTC in particular and make recommendations for the deregulation of the telecom sector and the privatization of PTC” [4] According to the report presented by the consortium, PTCL was to have monopoly on the basic services while the specialized services like Isdn, Paging, internet and networks would be privatized. PTCL was born in 1996. It has since strived to be in partnership with private businesses. It is one of the fastest growing organizations in Pakistan now, taking up to 30% on the stock market in Pakistan. Creativity is a major tool, which PTCL has used to pull itself out from the darkness. Finer optic projects along with the broadband advances have contributed significantly to PTCL resources. International and National pre-paid calling cards as introduced by PTCL received a warm attention. PTCL’s private partners are involved heavily in the contribution process because of their multi- national background. The current assets of PTCL stand at 256.7 billion rupees. A full deregulation of the telecom industry is being worked on. PTCL has digitalized about 90% of its services and is working to digitalize the rest of the 10% by November 2003. Direct dialing facility is provided all over Pakistan now. All the communications across the country has been connected via fiber optic trunk backbone. 5.3.9 Cellular Operators Telecommunication Mobile Limited (U-Phone). Paktel is 98.6% owned by Millicom International Cellular (MIC), whereas Sanbao Telecom, another MIC subsidiary At present four mobile companies are providing cellular mobile services in Pakistan. These are Paktel, Pakcom (Instaphone), Pakistan Mobile Communications (Mobilink) and Pakistan, owns 61.25% of Pakcom. Only two companies, Mobilink, majority owned by Orascom Telecom, and PTML, a 100% PTCL subsidiary, were using digital GSM technology for their services. Instaphone has only recently introduced the digital version of its analogue technology D-AMPS (Digital Analogue Mobile Phone System) whereas Paktel was still using the analogue technology AMPS (Analogue Mobile Phone System) for its services. With each player holding on to a sizable share (See Fig. below), the cellular market in Pakistan is characterized by cutthroat competition. [7] 5.3.10 International Communication Milestone: “For international communications links a SEA-ME-WE-3 Submarine Optical Fiber System Project was commissioned in August 1999. This is gradually being loaded for expanding circuits with different countries according to a schedule. During the year, 1,176 international circuits were opened with 19 countries. The submarine cable capacity has been enhanced to over 800,000 MIU kms. “ [4] File: Mazed U:/Telecom management/ CSE5806 Page 23 of 35
    • CSE5806 5.3.11 Key Developments: KEY DEVELOPMENTS AREA YEAR OF ESTABLISHMENT Pakistan Software Export Software Export 1995 Board (PSEB) Pakistan Technology Park IT Infrastructure 1997 Pakistan IT Commission IT Promotion 1999 National Database and Database 2000 Registration Authority Ordinance Patents Ordinance Protection 2000 Ministry of Science & Government 2000 Technology IT Ordinance IT Policy 2001 Internet Over Cable TV Internet Promotion 2001 Ordinance Electronic Transaction E-E-commerce 2002 Ordinance Network Access Point (NAP) Internet Access 2002 Electronic Government Government 2002 Ordinance Working Group for Network Cyber Security 2003 Security File: Mazed U:/Telecom management/ CSE5806 Page 24 of 35
    • CSE5806 5.3.1 Digital Divide: DIGITAL DIVIDE STATUS IN PAKISTAN Sr. No. Indicator Status Digital Haves Digital Have- nots 1 Total Population 141 Million 2 Per Capita Income USD 429 3 Access Lines 3.7 Million 45% 55% 4 Access Penetration 2.5% 5 Desktop Computers 1 Million 50% 50% 6 PC Penetration 0.7% 7 Internet Users 2 Million 30% 70% 8 Internet Penetration 1.4% 9 Mobile Phones 1.5 Million 20% 80% 10 Mobile Penetration 1.1% 11 Cable TV Users 2 Million 20% 80% 12 Cable TV Penetration 1.1% “As 70% of the population is rural and the provision of telecommunication services is mostly to urban areas inferring that the urban-rural digital divide is quite wide. Likewise it is also based on gender, age, income, education, culture, and profession. In terms of Internet access only 1% on the population is online from the whole South Asia, which resides 20% of the world population making digital divide not only a national but a pan- south-Asian issue.” 5.3.2 Security Issues: One of the greatest problems with the PTCL nowadays is the hacking and viruses control issues. As it is a common enemy factor for many organizations. The denial of service attacks has caused Isps to lose millions of dollars in revenue and the whole blame is shifted to PTCL. PTCL has commissioned a network security cell which is striving to handle this threat. “Due to the lag of competitive regulation or rules on competition, the mobile telecom market in an uneven playing field providing the SMP Mobilink to influence the market in uncompetitive manners or by limiting other operators to access its users even for trivial services like SMS.” [5] File: Mazed U:/Telecom management/ CSE5806 Page 25 of 35
    • CSE5806 The debacles of telecom giants like MCI, Lucent Technologies, and Worldcom issued a global warning of telecom frauds and failures across the world even effecting Pakistan as MCI has been a single most strategic partner routing US telecom traffic to PTCL. [5] 5.3.3 Recommendation: Pakistan has evolved as a major telecom player in the south east Asia. The struggle to modernize the telecom sector is still far from over. Better relationship management with in the competitors has to come clean. Looking back at 1947 when Pakistan appeared on the map of the world, it has improved significantly but much more could be done. The positive side is that the government of Pakistan is sensitive for the need of improvement and is taking steps towards Telecom prosperity in the country. The telecom management and technological advancement have been extremely steep however, more local production and self- sufficiency is the goal. 5.4 SRILANKA 5.4.1 Historical overview of telecommunication First telegraphic circuit in Sri Lanka was established in 1858, between the two main cities of Colombo and Galle. With the time passing by the Sri Lankan government then (Ceylon) took over Oriental Telephone Company with its manually operated exchange. By 1911 the first telegraph office was opened. In the year of 1933 international calling services was inaugurated. One major achievements of having the first earth satellite station was achieved in the year of 1976. In 1980 the Post and Telegraphic services separated from each other forming two departments, namely “Telecommunication” and “Postal”. By the year of 1991 with the rising demand for telecommunication services the Telecom Co-corporation was formed. Since then the telecommunication industry of Sri Lanka has come a long way. . The development took place in terms of reach and quality was low even after the liberalization of the economy in the country in 1977. The first mobile service was introduced to the country by Celtell Lanka (Pvt.) Ltd in 1992. Further more enhancing the land lines Sri Lanka Telecom did introduced Packet Switched services in 1993. The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) was established under the Sri Lanka Telecommunication (Amendment) Act No. 27 of 1996. In 1996 the fixed telephone market was liberalized by opening the telephone market to two Wireless Local Loop (WLL) operators and in 1997, 35% of the shares of the state owned incumbent operator Sri Lanka Telecom Limited (SLTL) was sold to Nipon Teleghaph and Telephone (NTT). By doing so it has given a major boost to the industry. A lost making organization (SLT) was able to actually start making profits and was stabilized to provide a better service to their customers. And with the introduction of competitors for fixed lines and mobile phones the quality of the Sri Lankan telecommunication rose to a credible limit. Since then there has been no turning back. Since then the countries telecommunication Industry boast of having, one fixed landline operator that of Sri Lanka telecom, four cellular phone operators (By end of1999), six public Pay Phone File: Mazed U:/Telecom management/ CSE5806 Page 26 of 35
    • CSE5806 operators (By end of1999), four Radio Paging operators (By end of1999), seventeen data communication service providers (By end of1999) and two Wireless Local Loop telephone providers in the country. And In 2003 Sri Lanka Telecom Became the only local company to provide both fixed landlines and mobile services. In addition Sri Lanka telecommunication providers does provide services such as, Satellite Communication services, Dial-Up, ISDN and Leased Line Internet services, International Private Leased Circuit (IPLC) services, Digital Subscribers Line (DSL), Telex Services, public phone booths, ADSL services, Packet Switch Data Network (PSDN) services. [1,2] 5.4.2 Telecom operators in Sri Lanka Operator Functionality Public Sector Telecom 1 Sri Lanka Telecom (SLT) Telecom Carrier, Basic Telephony service, ISP & other value added services Private Sector Telecom 1 Celtel lanka Limited Cellular Service (GSM 900) 2 Lanka Celulor Services Cellular Service (GSM-900) 3 Mobitel (pvt.) Ltd Cellular Service (GSM-1800) 4 MTN Networks (Pvt.)Ltd Cellular Service (GSM-900) 5 Suntel (Pvt.)Ltd. Land Line Service (Wireless local loop services) 6 Lanka Bell Land Line Service (Wireless local loop services) 7 Have 4 paging service Operators Paging Services 8 Have 29 Data internet service providers Data and Internet providers 9 Have 3 public phone providers Public Phone File: Mazed U:/Telecom management/ CSE5806 Page 27 of 35
    • CSE5806 10 Have 1 Trunk Radio providers Trunk Radio providers 11 Have 1 Leased Circuit providers Leased Circuit providers [1,2,7] Presently there are 42 licensed telecommunication service providers providing various telecommunication service in the country. Category of Service Number of Licensees Fixed Telephony - 3 Mobile Telephony - 4 Data Internet Services 29 (Including fixed operators) Radio Paging - 4 Public phones - 3 Trunk Radio - 1 Leased Circuit Providers - 1 [2] 5.4.3 Telecommunication in Sri Lanka – General Description Unit SLT Telephone users 653144 (By year 2000) Wireless Lines (Suntel, LankaBell) 114267 (By year 2000) Mobile Phone Users 450000 (By year 2000) Tele density 6.3 % (By year 2000) Card Phone in Use 8186 (By year 2000) Paging & radio Trunking Subscribers 7009 Internet Subscribers 40497 (By year 2000) Total International Circuit 2321 (By year 1999) File: Mazed U:/Telecom management/ CSE5806 Page 28 of 35
    • CSE5806 Ground Satellite Station 3 Expected demand for Telephone 867954 (By year 2000 June) [1,2] 5.4.4 Some ongoing telecommunication projects 5.4.4.1 PAN-Sri Lanka Project Early 1995, the Asia Regional Office of the International Development Research Centre (IDRC) in Singapore launched a new computer-based communication and research network for Asia. The network was termed the PAN-Asia Network Program. Worldview International Foundation (WIF) was asked by IDRC to by the end of 1995, submit a project proposal for PAN networked in Sri Lanka. Vietnam and Mongolia have already obtained their funding and are currently building up their national PAN network. Laos, Nepal and Bangladesh will follows. PAN is linked to Internet. This enables PAN users to link up with researchers and practitioners from international research and development institutions. The project proposal was submitted and accepted. The project was regit rated as company to allow for the provision of Internet services to the research and development community. Partners in the new company are IDRC, WIF and Computing Services Centre (CSC) of the Institute of Computer Technology, University of Colombo. [8] 5.4.5 Future Plans The Sri Lanka telecommunication industry seems to be at a watershed right now. The privatisation of SLT and the new licensing of private operators on trunk routes could drastically change the entire networking and data communication infrastructure in the country. For example, with regard to SLT the PSTN will cover all villages by year 2000, leased circuits and mobile coverage, email and data communication will extend to all major cities and other value added services such as video text, teleconferencing and N-ISDN services will operate in Colombo by year 2000. Since only recently begun, MTT's plans for extending their fiber optic backbone network is not available. This may operate in direct competition with SLT offering value added broadband ISDN services. Together with this, the intention of most current service providers to offer direct Internet or gateway access to Internet could see Sri Lanka finally join the Information Superhighway in a major capacity. Already at least Lanka Internet Services and LEARN have concrete plans to introduce advanced Internet services such as Web servers (a multimedia networking tools), Mirror Archives (reduced cost database access) as well as supporting the worlds largest bulleting board, USENET News consisting of thousand of news groups, users can subscribe, which convey timely information on any subject. The recent experiences in BBS are not entirely well received and uses must be warned of information glue as well. [8] File: Mazed U:/Telecom management/ CSE5806 Page 29 of 35
    • CSE5806 5.4.6 Proposed Projects 1. Extending the provision of Universal Service Obligations to People with Special Needs 2. Provision of Telephone Services to 590 Sub-Post Offices (SPO) in Sri Lanka. 3. Extending the provision of Universal Service Obligations to People with Special Needs 4. Provision of Telephone Services to 590 Sub-Post Offices (SPO) in Sri Lanka. 5. Implementation of a new number plan 6. Expansion of the rural telecom to the remote areas 7. Implementation of “Tele Centres” To have a national Telecom policy and to have a Co- operate plan. [2] 5.4.7 Regulatory Framework The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) was established under the Sri Lanka Telecommunication (Amendment) Act No. 27 of 1996.m Responsibilities of TRCSL 1. Enforcement of the provisions in the Act and conditions in the licenses by the licensed operators. 2. Foster fair and sustainable competition among the licensed operators • Monitoring competition to ascertain whether operators are meeting public interests objectives. • To ensure seamless interconnection between networks and services. • Establishing a general framework of open entry, non-burdensome and transparent licensing 3. Pricing • Ensure that telecommunication services are reasonably priced, taking in to consideration affordability etc. 4. Consumer Protection • To have consumer safeguards in place, and to encourage citizen participation and open dialogue by conducting inquiries in to complaints made by consumers and members of the public. 5. Regulation of bottleneck facilities and scarce resource • Spectrum Management • Numbering • Rights of Way • Space segment File: Mazed U:/Telecom management/ CSE5806 Page 30 of 35
    • CSE5806 6. Promote Good Governance. • To ensure a transparent decision making process, encouraging public participation and giving timely decisions by following principles of natural justice. 7. To ensure that our decisions are fair and impartial. [Ref 3] 5.4.8 Growth of Telecommunication In Sri Lanka The following graph will give an idea how telecommunication has grown in Sri Lanka in between the period of 1995 to 2000. • Change of the Tele Density in Sri Lanka during the period of 1999 to year 2000. [ 2] Tele Density 1999 - 2000 7.00% 6.00% 5.00% 4.00% Tele Density 3.00% 2.00% 1.00% 0.00% 1995 1996 1997 1998 1999 2000 • Growth of mobile phone use [2] Mobile Phone usage 500000 450000 400000 350000 No. of Units 300000 250000 Mobile 200000 150000 100000 50000 0 [Ref - 2] 1995 1996 1997 1998 1999 2000 Year File: Mazed U:/Telecom management/ CSE5806 Page 31 of 35
    • CSE5806 5.4.9 Mobile Telecommunication in Sri Lanka Celtel Lanka (Pvt.)Ltd was the first mobile service introduced to Sri Lanka. They do operate on a GSM 900 network. There network name goes as “Celtel Infinity”. Currently they hold the 3rd largest mobile market in Sri Lanka. Mobitel Lanka was the next addition to the mobile services in Sri Lanka. The introduction of mobitel brought an competitor to Celtel, thus it did effect Celtel in cutting their call charges etc. considerably. Mobitel lanka are currently operating on CDMA technology. They will be shifting in to a GSM 1800 type network from November 2003, in order to provide a better service to their customers and as step forward to provide 3 G services. Mobitel Lanka, which was part owned by Telstra Australia was brought over by the Sri Lankas largest land line provider Sri Lanka telecom. Thus becoming the only company to provide both land and mobile telecommunication facilities. Mobitel Lanka holds the second largest market for mobile communication in Sri Lanka. MTN networks, the main player in the mobile communication of Sri Lanka. The company is a key player in the Internet Service Provision Market with its state of the art ISP, Dialog Internet, and also operates Dialog SAT, the country's pioneer Mobile Satellite Service Provider. The company operates a 2.5G GSM network, supporting the very latest in multimedia and mobile Internet services, and also provides International Roaming facilities in over 100 countries. Dialog GSM is the country's largest cellular network providing services to over half a million customers (as of 2002) across all nine provinces of the island. The company became the first Telecommunications operator in South Asia to receive ISO 9001 certification. In 2002, through the launch of Satellite Mobile Telephony Services under the brand name of Dialog SAT. Dialog GSM has the distinction of placing Sri Lanka as the first in the country in the region and among the first 40 countries in the world to support High Speed Packet Based Mobile Data Services with the launch of GPRS (General Packet Radio Service) in 2001. GPRS - a key element of 2.5G GSM, is a major step towards 3G (3rd Generation) technology, offering higher data speeds, packet based data communications and end to end IP (Internet Protocol) based connectivity. Dialog GSM extended its regional leadership in mobile technology with the introduction of Multi-Media Messaging (MMS) in 2002 placing itself among the first 35 networks in the world to support this break through mobile telecommunications technology, enabling the exchange of multi-media content between mobile phones and even to/from the Internet. Sri Lanka is moving forward in the context of mobile communication. [4] [5] [6] 5.4.10 Internet Service There are 28 Internet service providers in Srilanka. There is a recorded growth of 59% in Internet and E - mail subscriber base in the year 2000.However the Internet development in Sri Lanka is at it’s initial stage. The two main reasons behind this are the low tele -density and the low PC penetration. Presently the total number of estimated PCs in the country is 108,416 and PCs per 100 inhabitants is 0.56% The cost of hard ware and soft ware, language barrier, poor IT literacy are some of the factors contributed to this situation .The Total number of recorded internet users for the year 2000 is 121,500. Comparing the internet usage with some countries in the Asian Region where the penetration of PCs are below 1% the achievements made by India with it’s File: Mazed U:/Telecom management/ CSE5806 Page 32 of 35
    • CSE5806 0.45% penetration rate is noteworthy comparing with the achievements made by Indonesia, Viet – Nam and Sri Lanka with there 0.99%, 0.88%and 0.56% penetration rates. [9] 5.4.11Factors Influencing Sri Lankan Telecommunication • Restructuring the incumbent service providers by way of changing their ownership pattern and preparing them for possible privatization has so far happened in Sri Lanka. • Conflict with Tamil tigers has a significant role on the growth of economy and foreign investment in telecom sector. Because of safety problem some investors do not want to invest. • High literacy rate (above 90%) makes people aware of basic telecommunication need. • Importance of extending telecommunication facilities to rural areas has been acknowledged at the highest level of the government. [Ref 9] • Home Zone tariffs are being approved by the Commission in order to promote cellular phone usage in rural areas. This is one of the main reasons contributed to the growth recorded by the cellular sector. Cellular phones are being used by 37% of total telephone subscribers in Sir Lanka. [9] 5.4.12 Recommendation In order to successfully overcome the prevailing situation it is important to draw attention on the following aspects. • Encourage privet sector participation by creating a healthy competitive environment. Take measures to reduce the cost and there by increase the accessibility. By installing public phones, multi purpose community tele-centers (MCT), establishing community based telephone systems. (Grameen Phones in Bangladesh) • Making user friendly environment and create an attitude change by developing software suitable for the communities with low literacy rates, by been able to use local languages. • Take measures to maintain an acceptable level of quality of all the telecommunication services. • Taking measures to make waiting time for connections minimal. Conduct periodic analysis and surveys and identify the correct needs of the society. In recognizing the current inequalities in communication facilities and with initiatives that will be taken likely to help reduce and ultimately eliminate these disparities. [Ref 20] File: Mazed U:/Telecom management/ CSE5806 Page 33 of 35
    • CSE5806 5.5 Other significant aspects Establishing Cross Border Data Flow Establishing cross-border data flows from other countries requires time and payment of appropriate fees. There are two fees payable - one to establish the cross-border data flow, and the second for carriage of the traffic within the country. To establish a 1Mbps data connection from Australia into Bangladesh requires a licence from Bangladesh Telecom Regulatory Board. Approvals take typically four to six months. In worst case may be one year. Carriage of traffic within the country is subject to normal telecommunications charges and project delays. High- speed links are freely available in and between major cities, while Low speed landline links (less than 9600bps) are easily available throughout the country. High-speed links to a minor city or village must be achieved via satellite links. The same implementation could be applied to Pakistan and Sri Lanka. [12] 6 Discussions of the Task There are some similarities we have found among the four countries. The most common feature is digital divide. There privileged society living in town and got the most benefit of digital world while the majority population living in rural side deprived from it. Most of the people in this region live in rural areas and they are not able to consume the telecom/IT facilities. So people who have money and power they become dominant day by day and the major portion of the population remain aside. This assignment is solely about the severity of the telecommunication industry in developing countries. Mainly these nations are basically suffering from the common problems of every developing nation, lack of funds and expertise for the development of their telecommunication sector. Afghanistan being the latest casualty of war has an aging analogue system being implemented thought out the country. Some of which are as old as 40 years. The newly installed government in 2001 is performing well with financial aid being provided by developed countries. The government solely supervises telecommunication development in the country, hence this is would prove productive in the initial stages but would result into uncompetitive ness in the future. Sri Lanka being a developing country is also facing it’s own problems such as the 20 year war that had been hindering many of their telecommunication projects and most of the infrastructure. The instability in the countries political structure is hindering most of the decisions to of development projects. There seems to be a shed of light on Sri Lanka’s telecommunication sector, because of the privatization of the Sri Lanka Telecom and by introducing the private sector as competitors in the industry. Pakistan is also suffering from political instability resulting into military rule. Constant tensions between nuclear enabled India are also another contributing factor. Hence most of the budget allocations are prioritized for defense purposes. The problem of over population is also another important factor, which hampers growth in Pakistan. File: Mazed U:/Telecom management/ CSE5806 Page 34 of 35
    • CSE5806 Bangladesh being a developing county also faces political uncertainty because of corruption and bureaucracy. Now and often this country faced by natural disasters and having a high poverty rate. An important opportunity had been missed when Bangladesh did not join the SEA-ME- WE-4 submarine cable network, which would result in more backwardness. But now they are trying to cope up with the modern world by developing the manpower. ----------------------------- ----------------------------- File: Mazed U:/Telecom management/ CSE5806 Page 35 of 35