1. Weaving IT into the
economic fabric
…a report card
Presentation to the
Salman Ansari Chief Executive and
Cabinet
Advisor, IT and
December 2001
Telecom

2. Summary
Progress made since March 2000
Future Directions
This presentation is subsequent to
the presentation of IT Policy, draft
Telecom deregulation policy and
initiation of Higher education
reform

3. Vision and objectives
Weave Technology into the fabric
of the economy
Permeate IT into the social fabric –
help make the nation smarter and
more informed
Address the induction of IT in
making the government more
efficient and improve the delivery
of services to the citizens

4. Targets and time lines
Focused actions to enable
maximum objectives to be
realized by Oct 12, 2002
Short and Long term results

5. Some Tangible Results
Progress
December 2001

6. August 14, 2000
29 Cities

7. Nov, 2001: 536 locations
83% of the
population

8. Bandwidth Available
August 2000: 32 Mb/s Sept 2001: 265 Mb/s
Operative Data bandwidth
300
250
200
M b /s
150 Operative Data bandwidth
100
today
50
-
Start point
Ju l-9 6
Ju l-9 7
Ju l-9 8
Ju l-9 9
Ju l-0 0
Ju l-0 1
J a n -9 6
J a n -9 7
J a n -9 8
J a n -9 9
J a n -0 0
J a n -0 1
J a n -0 2

9. Plummeting costs….
June 2000: US$ 87,000/E1 July 2001: US$ 6,000
Cost /E1
100,000
80,000
60,000
US $
Cost /E1
40,000
20,000
Start point
-
Today
1
00
0
0
1
0
0
1
-0
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-0
-0
-0
-0
-0
p-
l
n
ay
ay
v
ar
ar
Ju
Ja
Se
No
M
M
M
M

10. Internet user growth
June 2000: 130,000 Oct 2001: 810,000
Internet users Actual users
more than 3
1,000,000 Million!
800,000
600,000
Internet users
400,000
200,000 Start point
-
Today
Ja 5
Ja 6
97
Ja 8
99
Ja 0
Ja 1
02
-9
9
9
0
0
n-
n-
n-
n-
n-
n-
n-
n
Ja
Ja
Ja

11. Capturing the imagination

12. International Voice
communications (circuits)
June 2000: 5,000 Sept 2001: 8,000
International circuits
International
12,000
10,000
connectivity for voice
8,000
6,000 International circuits
4,000
up by 50% over the last Start point
2,000
-
54 years
Ja n -9 5
Ja n -9 6
Ja n -9 7
Ja n -9 8
Ja n -9 9
Ja n -0 0
Ja n -0 1
Ja n -0 2
Today

13. China
2002
Afghanistan
200 Cities on
Optical Fibre – up
from 100, one year
ago
Iran
India
200 cities on Fibre
432 cities on the Internet

14. Cellular explosion
Jan 2001: 225,000 Sept 2001: 810,000
Multiplied 400% in the Cellular Users
1,400,000
last 10 months as1,200,000
Cellular Users
Cellular Users
1,000,000
compared to the Start point
800,000
600,000
whole of the last 11
Today
400,000
200,000
CPP
years -
Jan-95
Jan-96
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02

15. Reaching the grass roots

16. Financial performance PTCL
2000 2001
Revenues 58.6 62 Billion Rs
Net Profits 13.3 18.2 Billion Rs
Payment to 19.2 26.1 Billion Rs
Goverment
Earning per
share 2.6 3.6 Rupees
Return on
equity 21% 25%
Dividend 2.3% 2.4%
Number of
employees 55,000 55,000
Net profit per
employee 239 325

17. The private sector
Cellular
Four operators, gross investment US$
970 Million, target growth: 2 Million
users in next 12 months
Internet and Data
85 operators, Gross investment US$
190 Million, target
Payphones
12 operators,
Prepaid cards
Financial Contribution to PTCL’s
revenues: Rs. 12 Billion

18. Educate &
Train….

19. ‘..the glass is half full…”
Proliferation of IT training
institutes
At the very least it has saved
the government billions of
rupees in training costs and
motivating people to learn to
use computers
Building on this base

20. Net Impact…
Ghari Hassu

21. Education
Setting up 7 new IT universities in
the next two years
Sindh: Korangi, Karachi
Baluchistan: Quetta
NWFP: Abbotabad
Punjab: Raiwind, Lahore
Virtual University
Comsats
FAST
IT Faculty training programs

22. Software and IT support
Software Technology Parks
Training of 25,000 public and
private sector people over the
last 12 months
Medical and legal
transcription
New comprehensive training
programs for IT enabled
services

23. Information
Technology and
Software
December 2001

24. Vision & strategy - review
software export
Lessons from the dot-com crash
Not affected since strategy was not
primarily based just on exports
World IT market US$ 560 B
US$ 400 B IT enabled services
• Call centers, transcription, out sourced
and back office services, software testing
• Very short take off times
US$ 160 B Software Development
• Relatively long gestation times
Thrust on Domestic market
development
Outsourcing and creation of projects

25. Direction and strategy
International
Partnering initiatives with Pakistanis
abroad
Incubators
Baseline study
Sector studies – e.g call centers
Co-location initiatives for services
GIS mapping and document conversion
Out sourcing and back office work

26. Direction and strategy
Domestic market stimulation
CE’s directive for local software
companies
Role of Task forces - TReMU and the
public private sector coordination
Federal and provincial government’s
to generate orders for automation
Educational networks and initiatives –
network
Financial networks
E-commerce and e-government
initiatives

27. Demand generation
ISO 9000 certification support
Needed for international recognition
and market access
Specialized training for niche
markets and large manpower
needs
Support for SMEs (Industries) in
terms of subsidizing Automation by
local software houses

28. Investments
December 2001

29. Road Blocks…

30. Road Blocks…

31. Private Sector Investments
:
public spending)
(excluding
Jan-June 2001 and announced for 2002 Rupees converted to Million US$
and merged with FDI9
Company Investment Investment Sector
2000/01 2001/02
Informatics, 9 14 IT education
1
APTECH, APIIT, etc
4 ? IT Education
Franchisees:IBM,
2
Oracle, Cisco, etc
7 20 It enabled
Align
3
services
5 12 Outsourced
Mathtech, awaz,
4
software
Ascot-Drumond,
development
other startups
86 Kiosks, IT
-
Sapura
5
Centers
19 Facilities,
2
Dadabhoy –
6
education
Institute, Internet
City

32. Private Sector Investments
:
public spending)
(excluding
Jan-June 2001 and announced for 2002 Rupees converted to Million US$
and merged with FDI
Company Investment Investment Sector
2000/01 2001/02
1 Instaphone 50 50 Wireless
access
2 - 20
Paktel Wireless
access
3 40 100 Wireless
Mobilink
Access
Cable
4 World Call 17 88
internet
Internet,
16
5 Supernet, 12
ASPs, etc
Cybernet,
Other ISPs
146 425
Total

33. E-government
Vision and Objectives
Service to Citizen
■
Internal Efficiency &
■
Effectiveness
Transparency
■
Spur local IT industry
■

34. Selection of projects
High feasibility
High visibility
Easy to replicate
Commonality and multiple
utility

35. Coordinating and
catalyzing
December 2001

36. Coordination of Efforts needed
Databases
Multiple databases
“Newer” :NADRA, NRB, PBM…
Existing : PTCL, WAPDA, Banks..
Standards being followed
Interfaces and links
Languages – English, Urdu,
Sindhi,

37. Coordination of Efforts
GIS
NADRA
NRB
PTCL
Survey of Pakistan
C4I
Army Survey Group
Private sector
Many, many, more initiatives

38. The Citizen…
Economic and Social
impact

39. IT works!
Telemedicine projects
Tele-surgery, tele-psychaitry,
tele-dermatology, Health and
Medical portal
Women in IT
Education, specialized training,
Entrepreneurship programs,

40. It really does…!
Legislation
IT laws, VC regulation, IPR laws,
Agriculture
GIS program, Crop forecasting
IT and Poverty Alleviation
Integrated programs

41. The divide

42. The divide?

43. Bring Computers and Internet
The princesses of badr
to the remotest areas
50,000 low cost
computers for schools
and colleges all over
Pakistan

44. Accessibility
Urdu and Regional language
software
Internet Kiosks
Airports, Railway stations
Cyber cafes,
Internet community centers
Rural areas 100 locations
PSO - 1800 Petrol Pumps all over
Pakistan
Post office project – 435
locations

45. The Virtual University
To get quality education to the
remotest areas
Optimize use of scarce resources of
faculty
Synergy with the Poverty
Alleviation program
Forward links – TV terrestrial and
Satellite
Reverse Links – Internet

46. The Virtual University
Educational
China
2002
Optical Fibre
backbone
Afghanistan
direct access
• 60
Universities
• 2500 schools
and colleges
Upto 10,000
institutions
via dial up Iran
Intranet India
Two Content
Server nodes 200 cities on Fibre
432 cities on the Internet

47. Telecommunications
Biggest growth area

48. Projected Middle Eastern inter-regional traffic,
cumulative 1999-2005*
Western
Europe
North
and CIS
America 20 Gbps
Asia
58 Gbps
Middle
East 11 Gbps
27 Gbps
* Source: Ovum Ltd.

49. Wireless and
Telecommunications
Investment forecast
The most important
investment scenario for
Investments into Pakistan
over the next 3-4 years
Potential of over US$ 10-15 B
(Sri Lanka example of $ 2.8 B for
one region)
Must be coherently tackled

50. PAKSAT project…1
After the CE’s directive to move
expeditiously
Advertised Internationally for an
Expression of Interest for companies
to participate
Advertised for international
consultants
Meetings with stake holders
Direction
Short term
Long term

51. PAKSAT project…1
Issues surfaced after Sept 11
13 companies responded
Consultant hired
Short Term plan given inputs at meeting
at SPD
Discussions underway with
Inter-sputnik – Russia
US companies
European companies
Target for next step Dec 17 for issuing
RFPs to interested parties
On track so far

52. National Strategic Optical Fiber Network Along Motorway

53. New Undersea Optical Fibre
Legend
Existing SMW 3
Existing FLAG
Proposed new spur
Branch Units

54. Multi-service VSAT

55. Afghanistan…..
Support and synergies
Telecommunications
•Reconstruction
•Satellite – Rural and
emergency communications
•Wireless access
Training and IT education

56. Afghanistan Network deployment concepts Map is for illustrative purposes only
3 5
Baglān
Mehtar Lām
Asādābād
Chârîkâr
1
2
6
Administrati Pop.
Place
ve Division 2001
Kâbul 2,080.0
Kābul
Qandahar 329.3
Qandahār
Balkh 232.8
Mazār-e Šarīf
Čārīkār Parwân 191.0
• Kabul – DMS MTX & GMP
1
4 Herât 161.7
Herāt
for Mobile/ International/ MTX &
1 Nangarhâr 154.2
Jalālābād
Gateway
PBX – Voice & Data Service Mehtar Lām Lagmân 118.5
Qalc eh-ye Naw Bâdgîs 115.2
• DMS MTX’s in next 5 cities
2
2 MTX Baglān Baglân 114.2
(suggested cities based on Qundûz 111.2
Qundūz
Population & location) BTS homed Asādābād Kunar 101.6
to MTX Gardez Paktiyâ 99.5
• BTS-only cities to extend
coverage while minimising
cost – then road coverage

57. Multi-service VSAT

58. 24 months ago….
Today once again…