ASSIGNMENT NO: 1

INTRODUCTION BUSINESS

TO

TOPIC: TELECOMMUNICATION

SUBMITED TO: MAZHAR FAREED SUBMITED BY: SUMBAL FIAZ BBA SEC (B)

DATE:

20-11-2013

LAHORE GARRISON UNIVERSITY

Telecommunications in Pakistan describes the overall environment for the growing mobile telecommunications, telephone, and Internet markets in Pakistan.

HISTORY OF TELECOMMUNICATION
From the of beginning Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. Despite having established a network of enormous size, PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan [citation needed]. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government's competitive policy, encouraging private sector participation and resulting in award of licenses for cellular, card-operated pay-phones, paging and, lately, data communication services. Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTCL, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in mid-1996. The Telecommunications Ordnance of 1994 created the Pakistan Telecommunication Authority (PTA), Pakistan's first independent

telecommunications regulator, and the Pakistan Telecommunication Company Ltd (PTCL), a state-owned monopoly.[2] In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan Due to a lack of competition, local telephone call rates were high and international call rates were even higher. During the 1990s, a call to United States cost $5 per minute (300PkRs per minute), which was not affordable for most of the population. In addition customer service was poor; fixing a problem might take 10 to 15 days. Despite this, consumers had to stick with PTCL, as they had no other options. This prompted the government to take a series of actions to improve the service by opening the telecommunications market.[3] This was critical, but required a fine balance because opening the market and preserving PTCL were both important for the government. In July 2003 the government introduced a Deregulation Policy for the Telecommunication Sector,[4] which allowed and encouraged foreign companies to invest in the Pakistani telecommunications market. In 2006, Etisalat International Pakistan, a wholly owned subsidiary of Emirates Telecommunications Corporation, purchased a 26% stake in PTCL and assumed management control of the company.[5] Pakistan's telecommunications infrastructure includes: Microwave radio relay, coaxial cable, fiber-optic cable, cellular, and satellite networks. International links include: landing points for the SEA-ME-WE-3 and SEA-ME-WE-4 submarine cable systems (*AMK) that provide links to Asia, the Middle East, and Europe; 3 Intelsat satellite earth stations (1 Atlantic Ocean and 2 Indian Ocean); 3 operational international gateway exchanges (2 at Karachi and 1 at Islamabad); and microwave radio relay to neighboring countries.[6]

*AMK: Now IMEWE of PTCL and TWA-1 of Transworld (Private Operator) also successfully working in Karachi, Pakistan. The survey found that in Pakistan the mobile sector was most active, followed by broadband; while the fixed-line sector remained somewhat static. The parameters that improved compared to the 2006 survey were: interconnection, tariff regulation, regulation of anti-competitive practices, and universal service obligation in the mobile sector; and market entry, interconnection, regulation of anti-competitive practices and universal service obligation in the fixed sector

OBJECTIVES OF TELECOMMUNICATION
1. Promote efficient use of radio spectrum; 2. Increase choice for customers of cellular mobile services at competitive and affordable prices; 3. Encourage private investment in the cellular mobile sector; 4. Recognize of the rights and obligations of mobile cellular operators; 5. Provide for fair competition among mobile and fixed line operators; and 6. Provide an effective and well defined regulatory regime that is consistent with international best practices 7. to produce high-quality Recommendations quickly in response to market demands; 8. to broaden participation and enhance involvement by non-administration entities in the Sector's standardization process; 9. to enhance Sector Member participation in the standardization process, including their involvement in appropriate decision-making; 10. to continue to improve the working methods of ITU-T, including the improved and accelerated development and approval of Recommendations; 11. to develop appropriate arrangements and cooperative relationships with regional and national standardization organizations and forums and consortia; 13. to respond to the impacts of increased privatization and competition in network operation and service provision, and to the reforms in the accounting rate system; 14. to encourage the participation of developing countries in telecommunication standardization activities; 15. to encourage cooperation with the Telecommunication Development Sector through timely responses to relevant requests;

TELECOMMUNICATION COMPANIES
Name PTCL V Wireless Wateen Vision Telecom (Pvt) Ltd Telcom Instaphone Mobilink Mobilink PCO Ufone Zong (formerly Paktel) Telenor Warid Telecom (Pakistan) Warid PCO Transworld Associates GO cdma Supernet Limited Etisalat uae PTCL Warid Telecom Vision Telecom Telcom Enterprises (Haripur Hazara) TeleCard Orascom Telecom Holdings Orascom Telecom Holdings PTML (a [PTCL] company) China Mobile Company Telenor ASA Abu Dhabi Group/ Singtel Warid Telecom Orascom Telecom TeleCard TeleCard Owner License Year 2000 2004 2007 2004 2010 2000 1992 2006 1998 1992 2005 2005 2007 2005 2004 2001

WorldCall Wireless WorldCall PCO SuperFone PCO Jaz PCO TeleCard PCO Telips PCO Callmate Calling Cards Callpoint Cards ARY Cards Hello Cards Gt Calling Cards Wateem W-Card

WorldCall WorldCall SuperFone JazTel TeleCard [Callmate Telips Telecom Limited] (disbanded in 2008) [Callmate Telips Telecom Limited] (disbanded in 2008) Damcom ARY Group

2007 2002

1992 1999

Hello Group Wisecomm Wateen

TOTAL 28 TELECOMMUNICATION COMPANIES ARE PRESENT IN PAKISTAN LISCENCES FROM 1992 TO 2007

GDP & REVENUES

Telecom has a direct impact on economy of the country. It shares than 2% share of GDP. Almost 45 billion tax is collected tables illustrate how every year from this sector. Following few
And how much does this sector affect Pakistans economy (PTA 2008).

Sector share in GDP (%age OF TELECOM SECTOR)

YEARS
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

%age share of GDP

1.6 1.6 1.7 1.7 1.9 2.0

GST/CED COLLECTION OF TELECOM SECTOR (RS IN BILLIONS)

2001 2002- 2003 2004- 2005-02
MOBILE

2006- 200707
28.2 7.9

03
3.3 8.2

-04
5.2 6.9

05
9.9 9.7

06
18.8 7.7

08
36.80 6.80

2.0

BASIC 6.9 TELEPON Y

OTHERS TOTAL

8.9

11.5

12.1

0.9 20.5

0.3 26.8

0.2 36.3

0.93 44.43

Conclusion Telecom sector in Pakistan is booming nowadays faster than in any country on earth today. The main factors behind this growth are foreign investment and neck to neck competition among companies providing services in this sector. It is a major source of revenue for Pakistans government and generates more employment opportunities nowadays than any other industrial sector of country. Telecom has revolutionized means of business, communication, lifestyle and education in Pakistan. It is still growing rapidly.

REFERENCES 1: http://www.scribd.com/doc/54219071/TelecomIndustry-of-Pakistan 2:http://en.wikipedia.org/wiki/Telecommunications_in _Pakistan 3: http://earnup.hubpages.com/hub/historyof_ptcl 4: http://www.pta.gov.pk/index.php?Itemid=320 5:http://en.wikipedia.org/wiki/List_of_telecommunicati ons_companies_of_Pakistan

6: http://www.prepaidmvno.com/info/a-brief-historyof-telecommunication/