The document discusses the trends, challenges, and opportunities in the telecommunications industry, highlighting significant growth in technology and mobile sectors, especially in Pakistan. It notes that the telecom market has seen a rise in global revenues, technological advancements, and increased internet access, despite some disparities in digital penetration. Additionally, issues related to privacy, infrastructure readiness, and the potential of the BPO industry for job creation are also addressed.

1. Telecommunications Industry: Trends, Challenges & Opportunities Dr. Sayeed Ghani IBA, Center for Computer Studies 15 th December, 2007

2. Overview Market Trends Technology Trends Challenges/Opportunities

3. Tech Stocks Have Outperformed S&P500 YTD… Although Tech Stocks underperformed market in 6 of last 7 years Tech stocks outperformed the market in 2007

4. Telecomm Industry $1.5 Trillion global revenues Telecommunication Equipment: $70B Worldwide Spending

5. Pakistan Mobile Industry Growth in Subscribers

6. Worldwide Growth: Fixedline vs. Mobile Telephone and Internet Users Worldwide (Millions)

7. Private ownership worldwide 1991 – 2007

8. ICTs become more available But disparities persist between regions … Penetration of major ICTs by region, 2005

9. International Internet Traffic and Capacity, 2003-2008

11. Voice over IP Growth in number of worldwide VoIP subscribers was about 90% in 2006

12. Optical Networking Breakthrough! Capacity Increase & reduction in costs

13. Data Explosion Storage Data is increasing at a staggering rate: World wide data stored on computer hard disks is increasing at a rate of 30%; about 10 Exabytes (10 18 ) each year – equivalent to about 70,000 libraries of congress, each with 17 million books! Accounting for a $70 B industry.

14. Changing Characteristics: Hello Social Networking!

15. New Traffic Characteristics

20. Market Trends Technology Trends Challenges/Opportunities

21. Convergence - Industry

22. Mobile/Wireless Trends

23. Wireless technologies target segments.

24. 802.16 Fixed WiMax / 802.11

25. 802.16e Mobile WiMax

26. The Wireless Vision: A Disappearing Technology An example: The light bulb Penetration Time Exclusive ” Everyone” has it Vanishing technology In almost every home Why isn’t there an outlet here? In a few homes 1900 1950 2000

27. Overview Market Trends Technology Trends Challenges/Opportunities

28. Technology vs. Privacy Location Tracking Mobile phone can spy even when off: Roving bug!

29. Pakistan: Progress in ICT The Telecom Industry – phenomenal growths: Attracting one of the highest Foreign Direct Investment in Pakistan Deregulation of the telecom sector Six mobile companies 14 LDI & 18 WLL companies cutting edge new services at lower costs number of cell phone subscribers from 0.2 million to about 70 million (last 7 years) The Internet Industry – phenomenal changes: The number of cities connected to the Internet: from 29 to about 2400. Tariffs for PTCL’s International Internet bandwidths: from US$87,000 to US$1,000 per month for a 2MB circuit. number of Internet users: from 200,000 to over 12 million.

30. Growth of ICT Usage Banking Sector Focus on Technology – competitive edge Numbers of ATMs in Pakistan: tripled in the last 5 years to around 1500 ATMs across 30 major cities ATM networks: 1 Link and MNET The number of online branches in Pakistan: from 400 in 1999 to 2,000+ at present E-enabled plastic cards in banks: from 0.3 million in 1999 to over 4 million

31. Issues & Opportunities Network Readiness Index Network Readiness Index Pakistan Ranked 67/115 in 2005 and now down to 84/122 in 2006/07 Pakistan still categorized in the Low Access Category Total Teledensity in Pakistan at ~ 45% However rural Teledensity ~ 1% The BPO industry E.g. Call Centers, data processing, MT $150+ bn (India has over $10 bn share growing at 70%) Potential to provide large scale job opportunities

32. Thank You!