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Role of PTA in Telecom Development: Vision for Fair Regulation and Growth

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joella
41 diapositives · 553 Views · Sep 07, 2014

The Pakistan Telecommunication Authority (PTA) plays a vital role in regulating the telecom sector under the Telecom (Re-Organization) Act of 1996. With its headquarters in Islamabad, and regional offices across key cities, PTA aims to foster a fair regulatory environment that promotes investment, encourages competition, and protects consumer interests. By issuing licenses, enforcing regulations, and addressing complaints, PTA helps modernize telecom services, while its incentives and liberalization policies contribute to a thriving industry. Despite challenges, PTA has catalyzed significant growth in telecom services and infrastructure.

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  1. ROLE OF PTA IN THE DEVELOPMENT OF TELECOM SECTOR VISION Fair Regulatory Regime to Promote Investment , Encourage Competition, Protect Consumer Interest and Ensure High Quality ICT Services

  2. SEQUENCE • PTA ORGANIZATION AND FUNCTIONS • INDUSTRY SCENARIO • INCETIVES TO THE INDUSTRY • SECTOR LIBERALIZATION • INDUSTRY PERFORMANCE • TARIFF • CHALLENGES

  3. Perspective • PTA was established under the Telecom (Re-Organization) Act 1996 To regulate telecom system and services in Pakistan • Headquarters in Islamabad. Regional Offices are in Karachi, Quetta, Lahore, Rawalpindi and Peshawar • Autonomous Body

  4. Organization CHAIRMAN MEMBER (TECHNICAL) MEMBER (FINANCE) LICENSING WIRELESS COORDINATION INDUSTRY DEVELOPMENT LAW FAB FINANCE ENFORCEMENT COMMERCIAL AFFAIRS LICENSING WIRE LINE

  5. Functions • Regulate telecom systems and services through fair, transparent and judicious regulatory framework • Issuance of licenses for various telecom services • Enforcement • Protect the interests of users and service providers • Investigate and adjudicate on complaints and other claims • Process applications for radio frequency spectrum • Promote modernization of telecommunication systems and services • Make recommendations to the Federal Government on policy matters

  6. Telecom Scenario2002 • PTCL Monopoly on Fixed Line Telephony • Cellular Mobile Sector –Stagnant • Competition in Value Added Services (Small Operators) • Pay phones • ISPs • Cable TV • Low Tele Density • Fixed 2.5 • Mobile 1.0 2002 Total 3.5

  7. Incentives to the Industry 2001(Reduction in Fee / Royalty) • Mobile phone - From 4% to 1.5% • ISPs - From 4% to 0.66% • Royalty on Equipment Sale - From 5% to 0% • License Fee • ISPs in Balochistan - 50% • Satellite Service - Fee & License Abolished(Registration Only) • Type Approval Fee • Locally Manufactured Equipment - 50% • Foreign Manufactured Equipment - 33% Continue

  8. Incentives to the Industry 2001(Reduction in Fee / Royalty) • PTCL Leased Line Charges - 30% Reduction in 2002 For Mobile Operators - 17% Reduction in 2005 • PTCL Leased Line Charges - up to 39% Reduction in 2005 For LL & LDI Operators • Activation Charges - Rs. 2000 to Rs. 500 For Mobile Phones • Advance Tax on Prepaid - Rs. 125 to 45* Cards *on card value of Rs. 500

  9. SECTOR LIBERALIZATION

  10. Cellular Mobile New Licensing • Open Auction for Award of Licenses -14 April 2004 ( US $ 10 MILLION Earnest money) • Companies Participated in the Auction - 9 • Highest Bid - US$ 291 Million (Existing Licensees to pay the same fee) WARID & TELENOR

  11. WARID & TELENOR Serviceability • OPERATIONS WARID TELENOR • Service Started May 2005 March 2005 • Cities/ Towns Covered 28 (70 Jan 06) 3 (Now 160) • No of BTs 536 (Now 617) 350 ( Now 1000)

  12. DeregulationPolicy • Open and Technology Neutral • License Term – 20 Years (Review after 5 Years) • License Categories • Local Loop (LL) • Long Distance & International (LDI)

  13. Issuance of LL & LDI Licenses • Licenses Issued • License Fee • LL - US$ 10000 • LDI - US$ 500000 • (Performance Bond- US $10 MILLION) • LL – 79 • LDI - 13

  14. Spectrum Auction for WLL • Spectrum auctioned through open bidding – Aug 2004 • Spectrum allocated on regional basis • Licenses Issued – 92 • Fee Collected – RS 14 Billion

  15. NEW LICENSES LDI 13 LL (Fixed) 79 WLL 92 CMT 2

  16. Salient Regulatory Initiatives • Determination on Interconnect • Determination on Co-Location • Determination on Limited Mobility • SMP Status of PTCL and Mobilink • Simplified VAS Licensing Regime • Many licenses condensed into only two • Some licenses replaced by registration • Enabling environment for broadband penetration

  17. INDUSTRY PERFORMANCE

  18. Teledensity Growth (fixed telephony) Fixed Line Connections - 5,318,480 WLL Connections - 4,17,349 4.00% 3.70% 3.50% 3.17% 3.00% 2.70% 2.50% 2.27% 2.50% 2.18% 2.10% 1.99% 1.85% 1.91% 2.00% 1.50% 1.00% 0.50% 0.00% 2005 1996 1997 1998 1999 2000 2001 2002 2003 2004

  19. Major WLL Companies • PTCL 238,202 • TELECARD 132,500 • WORLD CALL 43,114 • GREAT BEAR 3,511 • DV COM starting the service soon • BURAQ starting the service soon

  20. Cellular Mobile Growth Penetration 12.7% Jun-00 Jun-02 Jun-04 Nov\ Dec 2005

  21. Cellular Mobile Sites Growth

  22. Market Share of CMT Operators

  23. Pay Phone Growth

  24. Internet Subscriber

  25. REVENUE / INVESTMENT

  26. License /Spectrum Fee 2004 - RS 16,765 BILLION 2005 - RS 12,257 BILLION 20 16,765 18 16 14 12 9,267 10 8 397 6 2,593 4 2 0 2004 2005 2005 2005 CMT WLL LL & LDI

  27. Cellular Mobile Revenue

  28. GST/CED of Telecom Sector

  29. FDI in Telecom Sector(% of Total Contribution in Total FDI)

  30. Investment Made by Major Companies

  31. TARIFF

  32. Tariff Reduction of PTCL

  33. Long Distance Call Rates Prepaid Calling Cards

  34. Local Call Rates - WLL

  35. Tariff Reduction Cellular Mobile

  36. Achievements • Unprecedented Growth in Telecom Sector • Tariff Significantly Reduced • Substantial Investment Made • Economic Growth • Employment Opportunities • Healthy Competition • Successful Holding APT Meeting • Significant Role in Earthquake Relief Efforts • Heavy license fee collected for the Government

  37. CHALLENGES

  38. Mobile Number Portability • MNP Allows Users to Retain the Same Number While Switching Over to Another Operator • Enhances Fair Competition • 60% task completed • MNP regime will be implemented in first half of 2006

  39. Rural Communication • Many Options to Extend Telecom Facilities (Use of WLL, VSAT, IP Technologies and Cellular Mobile) • Plan to establish Tele-Centers through Micro Financing • Implementation in consultations with local Governments

  40. Broadband • High Speed (128 kbps & More) “Always On” Internet Connection • Broadband Access a Catalyst for Economic & Social Development • Broadband Penetration very low - 30,000 Approx • Efforts in Hand to Enhance Penetration • International connectivity will be enhanced soon • Cost of Domestic Private Lease Circuits (DPLC) being reviewed • Creation of enabling environments

  41. THANKS