This document provides a summary of trends in the ICT industry in Pakistan and globally. It discusses key technology trends like cloud computing, LTE, and IPTV that are driving growth. It notes that broadband penetration in Pakistan is low at 0.3% while mobile penetration is high at 65%. The document also outlines Pakistan's growing cellular, broadband, IT and software industries, with the software industry generating $2.8 billion in revenue. It highlights gaming and animation as promising areas for Pakistan's IT industry.

1. Status & Trendsin the ICT Industry 23rd July, 2011ICICT2011Dr. Sayeed Ghani Associate Dean, Faculty of Computer Science, IBA

2. Overview 2 Global Market Trends Pakistan ICT Industry

3. Earlier: TIAs 2009 ICT Market Review & Forecast 3 Earlier Forecast

4. TIA 2011: Global Telecommunication Growth in Spending 4 Forecast

5. ICT Market Review & Forecast 5

6. Technology Trends 6 LTE (Long Term Evolution) Next generation mobile wireless broadband technology. Cloud computing Substituting premises-based equipment. VoIP Will gain at the expense of circuit-switched service. VoIP in the US will reach 24 percent of the circuit-switched subscriber base in 2014 from 18 percent in 2010. IPTV Subscription spending will nearly triple to $12 billion in 2014 in the US. High speed wireless services Will drive wireless spending

7. IP in the Enterprise and Consumer Networks 7 IP virtual private networks (IP VPNs) are rapidly gaining share at the expense of frame relay and asynchronous transfer mode (ATM) solutions, both of which are falling precipitously. Carriers are converting to multiprotocol label switching (MPLS) in their core networks to facilitate IP transport. Ongoing convergence to IP technologies and upgrades to accommodate the transition to IPv6 will drive the market over the long run.

8. Global Markets 8 Europe has the top six countries in broadband penetration, while the United States ranks 18th in broadband penetration. Europewill be the slowest-growing region because its wireless market is saturated. Large gains in broadband and wireless penetration will fuel growth in Asia Pacific, with most of the growth generated by China and India. Middle East/Africa will be the fastest-growing international region, fueled by expanding wireless and broadband infrastructures.

9. Global ICT Trends 9 Pakistan: 65%

10. Broadband 10 Pakistan: 0.3%

11. Fixed Broadband 11

12. Global: Internet Penetration 12 Pakistan: 11% (20 Million users)

13. Overview 13 Global Market Trends Pakistan ICT Industry

14. Pakistan’s Cellular Industry 14 Cellular Teledensity: 60-65%. Overall 68% BMI forecasts 136M cellular subscribers by end-2015 (70.3% penetration). US$6.3 Billion FDI in last 5 years Total Telecom Investments: about US$ 1.1 Billion, with 80% in Cellular Total Telecom sector revenues: about Rs. 360 Billion (2009-10), with 11% Growth. Next wave of FDI expected once 3G is launched (expected end 2011) Source: PTA / BMI

15. Broadband Internet 15 Average Growth rate of 150% Wireless: 300+% Wired: 50% 0.7% penetration Broadband subscriber base reached 1M in October 2010, an increase of 63.5%. WiMAX and EV-DO catching up fast to DSL Popularity of mobile broadband: pricing; low-cost mobile devices; lack of wired infrastructure in rural areas. Source: PTA / BMI

16. WEF: Network Readiness Index 16

17. Network Readiness Subindexes 17

18. Readiness / Usage Components 18

19. Environment Component

20. Pakistan’s IT/Software Industry 20 Pakistan’s IT and software industry is now a relatively well-established tier-2 player (behind India, China, and Russia) in the global IT industry. Pakistan's IT industry's global share is estimated at US$2.8 billion, including global sales revenue of US$1.6 billion, and more than $750 million in exports. A skilled workforce of 110,000 English-speaking IT professionals in the economy, of which 24,000 are engaged in exports. Nearly 1500 companies. Two are listed on the Karachi Stock Exchange (KSE), 2 on the NASDAQand 1 on the Dubai International Financial Exchange (DIFX). 110 ISO 9001, 23 CMMi and 11 ISO 27001 certified companies. Nine STPs offering around 700,000 square feet of IT-enabled office space. Lahore Tech. Park upcoming (17 story, 275,000 sq. feet). Seven multinational companies have 'Development Centers' in Pakistan. A strong telecom sector supports the IT industry's development. Source: PSEB

21. Pakistan’s software / BPO Industry 21 Impact of 2007 Recession in On Total Revenue and Spend of Pakistan's IT Industry Source: PSEB Pakistan IT Market Assessment - 2010

22. IT Employment 22 Source: PSEB Pakistan IT Market Assessment - 2010 Source: PSEB Pakistan IT Market Assessment - 2010

23. IT Employment Growth 23 Source: PSEB Pakistan IT Market Assessment - 2010

24. Mobile, Gaming & Animation (MGA) Industry 24 Unlike the DotCom and the Y2K opportunities, where Pakistan’s IT and software industry lost out on the first mover’s advantage, the opportunities presented in the MGA space are ones where Pakistan has been quite well-positioned to take advantage. MGA is considered one of “the most exciting changes sweeping across Pakistan’s IT industry.” Rate of smartphone adoption is accelerating: 22% of UK consumers had a smartphone, with this percentage rising to 31% amongst 24–35 year olds. Source PSEB

25. MGA: Success Stories 25 Mindstorm Studios: (Cricket Revolution™ ): first internationally selling PC game – and official game of ICC WorldCup 2011. GameView Studios: Tap franchise, acquired by Japanese social gaming giant DeNA. Pepper.PK: Two top-ranking paid BlackBerry applications. Tintash: Dedicated to creating innovative casual games designed for the iPhone, iPad, and Android platforms. TkXeL: Creating not one but two 100% "Made in Pakistan“ mobile applications and gaming companies from a university lab in Lahore. This is where the new generation of entrepreneurs are placing their bets!

26. Thank You! 26