www.usf.org.pk usf mission: “every pakistani has the right to modern telecommunication services...

www.usf.org.pk

USF Mission:

“Every Pakistani has

the right to modern

telecommunication

services and we

strive to provide

that”

1

-Parvez Iftikhar

CEO USF Pak.

What is USF?

Fund consists of contributions by Licensed Telecom Operators

No Government Funding

Used for Telecom Service Providers to provide services in unserved/under-served areas

Ministry of IT acts like a “Trustee” of the Fund

Disbursed through open competitive bidding by USFCo., which is set up under Companies Law

USF Co. is a Public-Private-Partnership enterprise, run by an independent Board

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Public-Private Partnership

3

Rep. of Consumer Interests

Rep. of Consumer Interests

Rep. of Mobile Operators

Rep. of Mobile Operators

Rep. LL/LDI Operators

Rep. LL/LDI Operators

Representative of ISPs

Representative of ISPs

Member Telecom MoIT

Member Telecom MoIT

Chairman PTAChairman PTA

Federal Secretary ITFederal Secretary IT

Minister of ITMinister of IT

CEO USFCEO USF

PUBLIC PRIVATEUSF Co. Board

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USF Co. Rules & Principles...

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Open, transparent biddingAll docs on Website

Retail Tariffs subject to PTA controls

Max 50% accumulation of subsidy

No local monopolies:Obligatory infrastr. share

One-time subsidies for Capex

Technology Neutral

Performance guarantees by subsidy winners

Six-monthly Audits for USFCo.Lien on Equipment

4

Frequent Board Meetings

Series1

145

95

Operator's Investment

USF Subsidy

40%

60%

USF generated investments in 2 yrs

5

Tota

lIn

vest

men

t

Million US$.

~ US$ 240 Mil

~$ 4 Mil disbursed

USF Programs

3 + Programs

< - T E L E C E N T E R S - >

1st USF Program:Rural Telecom

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26 “Lots” of Rural Telecom

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Status of Villages in Rural Program

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22%12%

51%

15%

Unserved Villages ( aprox. 12,000)

Bids calledRemaining

Work-in-Progress

Service provided

RenewableEnergy

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ICT Infrastructure

funded by USF Pakistan is powered by

Renewable Energy Sources

2nd USF Program:Optic Fiber Access for

all Tehsils

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Optic Fiber availability in Pak.

Served areas

Unserved areas

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3rd USF Program:Broadband for

un-served urban areas

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Benefits of BroadbandEducation

Bring Schools & Colleges on-line, help “Distance Learning Programs

HealthTelemedicine for Hospitals, BHUs, Health Centers etc.

AgricultureProvide latest info. on crops, pesticides, fertilizers, market prices; Rural Banking – especially Microfinance

EconomyModern banking/funding; Improved on-line remittances, Improved Agricultural, Branchless Banking, Industrial and Commercial outputs.

OthersAccess On-line services/info of Govt., On-line Visa forms …

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Broadband Strategy of USF Pakistan

Un-served Rural62%

Covered21%

Un-served Urban17%

~480 cities & towns: no Broadband available

Rural areas:

No PCs, & No Computer- literacy

15 to 18

large cities: Broadband is available

1. Start by targeting Unserved Urban Areas

2. Pay only when given targets are achieved (OBA)

3. More than one subsidy winner

4. Special emphasis on Education

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Impact of Subsidy on Broadband

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New infrastructure by

BSP

Measures to “sell" USF

target-connections

Increase in No. of Connections

Decrease in costs due to EoS

One-time USF subsidy

Broadband deployment in 11 Regions

Another 3 Regions

advertised for bidding

Agreements signed

3 Regions (KTR, LTR & ITR) are already “served”

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There will also be:

~2,000

Educational Broadband Centers

~700

Community Broadband Centers

In near future,4th USF Program:

Community Telecenters

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Broadband Strategy for RURAL areas

Un-served Rural62%

Covered21%

Un-served Urban17%

~480 cities & towns: no Broadband available

Rural areas:

No PCs, & No Computer- literacy

15 to 18

large cities: Broadband is available

Target Rural Areas through Community Telecenters

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Telecenter Challenges...

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Sustainability

Connectivity

Computer Literacy

Content

Others

Someone must be responsible with stakein the venture– not government!

High speed media unavailable, areas difficult to reach

Basic knowledge to operate computers lacking

What will the villagers do with these?

PCs, Electricity, Repair & Maintenance

In General…

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Challenges and SetbacksSetbacks:

a. Force Majeure in Malakand

b. No-bids in Chaghi, D I Khan and Kila-Saifullah/Loralai

c. Backing out by winning bidders in Kalat-Mastung and MTR

d. Other delays…

Specially challenging is Baluchistan –

44% of Pakistan’s Area, 70% of Coastline, but 5% population - Average 19 people per sq. km.

Stated Reasons:

Security issues, Access problems (physical / electronic), No Power, Increase in costs (Inflation, Rupee Exchange- rate), High Taxes,

coupled with High Opex, Low Revenues.

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Thank you

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