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Many GSM industry supporters have looked at WiMAX as a competitor - though others disagree and call attention to its complementary uses as I’ve covered before in the post Why WiMAX?. In Pakistan Wateen is an interesting case because it wants to have a two prong strategy and cover all its bases. However in India there’s some resistance to WiMAX which gives an idea of the uphill battle WiMAX is facing.

Here’s a (story) which tells about the internal struggles in India about WiMAX standards. However the Cellular Operators Association of India (COAI), the body representing all GSM operators, has cited compatibility / interference issues and wants more time before agreeing to the proposed standards.

The global WiMax Forum has sought the Indian government’s support in its endeavour towards getting the International Telecommunication Union (ITU) to include WiMax as part of International Mobile Communications - 2000 (IMT-2000) standards.

The forum has asked the Department of Telecom (DoT) and the Wireless and Planning Wing to support its cause in the upcoming ITU meet in Kyoto, Japan. Indian cellular operators have, however, opposed the move and said that the DoT must not support the forum’s proposal until further details such as compatibility and interference issues with regard to WiMax are available.

IMT-2000 is the global standard for third generation (3G) wireless communications as defined by the International Telecommunication Union. It has defined five standards which are followed globally for 3G services. In January 2007, a proposed sixth standard (WiMax) was submitted into ITU by the Institute of Electrical and Electronics Engineers (IEEE) and supported by the WiMax Forum.

Read the rest of this entry »

Thanks to Ehti, a Wired Pakistan Forum contributor, I saw this video of Wateen’s WiMAX on Motorola’s site. It is about 2 minutes long. Even thought it is a marketing blurb for Motorola yet it gives a quick tour of Wateen’s work in Pakistan and its well worth the click.

The annual conference of CTIA, the wireless association, was held last week of March 2007 in Florida. The CTIA annual event is said to be ”the world’s largest technology event dedicated exclusively to wireless, broadband convergence and mobile computing technologies”. It is a great place to showcase new technologies, network and socialize with top decision makers and create buzz about upcoming work. For example the much awaited voice search applications from Google and Yahoo were announced here.

The event covers the entire industry from network infrastructure to microprocessors to applications to content to end-user hardware. More info at the CTIA site.

The covered topics for 2007 conference include:
- The Quadruple Play
- Mobile Enterprise
- Mobile Payments
- Mobile Entertainment
- Social Networking & Mobile Communities
- Advertising
- Globalization
- WiMAX

See the webcasts of the conference here.

One of the major highlights is the Emerging Technology Forum track at the conference. The forum focussed on the following four tracks:

  • Wireless IP - Media, data and voice applications and services, including architecture and platform requirements for handsets.
  • Multimedia Trends - Displays, chips, power, MDTV, wireless standards, spectrum, antennas, and more.
  • Handset Processors - Silicon trends and requirements for future wireless media driven handsets.
  • Mobile Software Integration - Operating systems, application software, content, DRM, services, user interfaces, and more.
  • For detailed roundup of the conference see this post.

    This post examines the challenges faced by PTCL and its future prospects.  As we know the Etisalat owned PTCL has been engaged in battles with new competitors and regulatory body (PTA) on one hand and faces internal organizational issues on the other. Its profits have been sliding. Notwithstanding the grand claims by its executives, Will PTCL be able to reverse the trend and prove to be a good investment?

    Read the full post at the new site.

    Most of us know Wi-Fi as a way for laptops to get a high-speed wireless connection to the Web. But as Wi-Fi technology becomes more commonp, handset makers in US and Europe are beginning to include Wi-Fi chips in their phones, so the phones can jump back and forth between cellular and Wi-Fi networks. In some cases that mean faster surfing and you don’t have to use any costly minutes when you roll your regular voice calls onto a Wi-Fi network. Carriers will likely charge a monthly fee for such services though.  In US Over 80 cellphones now come with Wi-Fi access built in, from manufacturers such as Samsung, Nokia and Apple’s iPhone also includes a Wi-Fi chip.

    These kind of hybrid phones have been in the news for a while (see this 2004 CNet Article) but only now they seem to be likely to become mainstream. Then there are the new type of Wi-Fi phones as the one from Skype and NetGear which lets you make VOIP calls over Wi-Fi.

    Wall Street Jounral Reports:

    To make these phones useful in the growing number of hot spots in US, manufacturers need to strike agreements with hot-spot operators like Boingo Wireless Inc., of Santa Monica, Calif., which oversees more than 60,000 access points globally, and T-Mobile USA, a part of Deutsche Telekom AG, which has 30,000. That will enable users to take their phone to a Starbucks, airport or hotel and keep using it without having to go through several logins.

    “It’s one thing to bolt a Wi-Fi radio into a phone,” says Sky Dayton, a technology entrepreneur who founded both Helio and Boingo. “It’s another to make it a seamless experience for the user. That’s where the magic is.”

    There are other high-speed options on the way. Cellular carriers are upgrading their existing networks to make them more powerful, and some are investing in entirely new ones to make significant jumps in speed. In the U.S., Sprint Nextel has said it plans to spend up to $3 billion to roll out a higher-speed network based on a technology called WiMax, making it available to 100 million Americans by the end of 2008. The company says the service should initially offer speeds of two megabits to four megabits per second — roughly twice as fast as Wi-Fi — at prices comparable to those of cable operators, which are usually around $50 per month.

    In Asia, operators have similar plans. In South Korea, a technology similar to WiMax, known as WiBro, is taking hold. In Japan, DoCoMo is planning for an ambitious upgrade by 2010 — an ultra-high-speed wireless network that it says will allow download speeds of up to 100 megabits per second. That would put the network on par with the highest-end fiber-optic landline Internet connections.

    For more info about WiFi phone sets see this review.

    Pakistan is one of the early adopter of WiMax technology and Wateen has made ambitious announcements for WiMax rollout in 17 cities. Wateen is using the technology to provide fixed wireless broadband data services for residential use, and through its 5,500 kilometre long haul optical fibre, metro optical fibre rings and FTTx, the company will offer total communication solutions (Triple Play) including voice services, video conferencing, broadband internet and TV viewing. Others such as Dancom and Burraq are also implementing WiMax. For an overview of Wimax in Pakistan see my previous posts, especially this. Despite all this buzz around WiMax there are still many who express doubts about it, especially when 3G is out there.

    An article in THE ECONOMIST says that for the 60,000 people attending the 3GSM trade show recently in Barcelona, WiMax was everywhere … on huge banners, on the lips of executives, and on products in display cases.. everywhere, that is, except in the real world. The article says that even as mobile operators start to upgrade their networks to the latest enhanced 3G equipment, WiMax boosters say their technology is superior … and now that WiMax networks are starting to pop up around the world, the industry will soon find out if they are right. I think that startups such as Meraki which is developing low-cost wireless mesh technology and routers, can make a big difference in WiMax adoption.

    As discussed at ZDNet here, the market for high-speed connectivity has split into two camps: one stands by wireless standards such as WiMax and Wi-Fi, while the other supports mobile technology 3G and HSDPA. Motorola which is one of main Wimax provider thinks that Wimax can replace wired broadband in 20 years. The GSM camp disagrees. The truth is probably somewhere in between: both mobile and wireless (wimax) technology segments are complementary and can co-exist in the market (see illustration above - source: Alcatel / Forrester). In my opinion, it is the local economics and demand which will favor one technology over the other.

    As noted in ZDNet, Wi-Fi and WiMax have been largely confined to facilitating high-speed connectivity to laptops and PDAs, while 3G and HSDPA have focused on mobile phones. However, there are now suggestions that 3G can be extended to laptops, particularly as the data speeds offered by these mobile standards catch up to those provided by WiMax.

    Mobilink CEO Zouhar Khaliq has been reported to state that Mobilink had trialled WiMAX in the past but said that no trials were currently underway. “Our main aim is to continue to be the dominant cellular and telecoms player in Pakistan, offering services beyond the cellular space,” Khaliq added.

    “Over 80 percent of the world’s population has GSM coverage, but I don’t think that’s true for WiMax ,” a GSM Association officer said. “Why then would you want to invest some millions of dollars building up a WiMax network when you have a [GSM] network that already covers 80 percent of the world’s population?”

    Read the rest of this entry »

    Affordable connectivity in remote and rural areas in developing world remains one of the top telecommunication challenges. In recent years a lot of  research has focused on solving this problem and options include Mobile wireless networks,  Fixed wireless technology such as Wimax, Wireless local loop and Satellite networks. Wireless Mesh Networks have also been proposed as a viable solution. 

    There are a few organizations in Pakistan working on this - one leading research group is DRITTE which is an initiative for leveraging Information and Communication Technologies (ICT) for developing countries. For those interested in research work do take a look at this upcoming workshop on Networked Systems for Developing Regions. There is a blog at DRITTE site as well … the latest post there talks about Meraki, which is aiming to provide consumer wireless mesh Internet network designed to “unwire the world,” and bring Internet access to the next billion.

    Talking about billions, I came across another interesting website NextBillion.net which also includes articles and resources about rural connectivity. Read this post titled “Wireless Mesh as a Transforming Tool” by Al Hammond. See the Wikipedia wireless mesh networking page for an overview. Al’s post talks about a pilot program in Vietnam and there is a link to a pdf paper titled “A New Model For Rural Connectivity“. Very informative, also includes an appendix about Wi-Fi phones.  Al has travelled to Pakistan as well and also written about mobile commerce. Here is an excerpt from the paper:

    “The components of a community-based telecommunications network include:
    1) an Internet Protocol (IP) network in lieu of a circuit switched network,
    2) voice services that are provided through VoIP in lieu of custom hardware-based switching,
    3) wireless distribution, be it Wi-Fi or WiMAX or, for the more remote locations, VSAT links for connecting the rural system to the Internet.

    In this model, the local network is easily deployed, provides multiple telephony access points for both inter-community and long distance calling in addition to supporting data. There are several options for providing these services to the local community. One obvious approach is to upgrade an existing telecenter to become a true “last mile” solution provider by focusing on voice services, and delivering expanded access into the community through selected businesses or even homes that serve as “phone shops” for the immediate neighbors. Another approach is to turn an existing satellite ground station into a local community telco by adding Wi-Fi/WiMAX distribution capabilities and WiFi phones.”

    The mobile companies in many regions of the world do not enjoy the subscriber growth witnessed today in Pakistan, India and China. Therefore they have to work on new strategies to spur the growth and increase the revenue per subscriber. A recent paper in Alcatel Telecommunications Review (3Q 2006) summarized the challenges of high growth mobile markets and provided some suggestions to increase revenue.  The paper “Innovating to maintain momentum in mobile penetration” is available at Alcatel’s site. In this post I’ll share a few key points and figures from their paper.

    Figure 1 is a summary of key challenges (click to see larger resolution image). The mobile companies in Pakistan will soon face many of these challenges.

    Figure 2 is a graphical representation of growth markets vs. mature markets in terms of digial access index (see my earlier post on digial opportunity index). 

    Figure 3 presents a view of how the telecom companies can use IP based networks to converge and optimize their solution offerings and at the same time increase their penetration by offering new services such as micro-payments. The next generation networks will play a key role in this growth. Of course some of the technologies shown here - WiMAX for example - are so new that their success or failure is still an open question. Still the point remains that current products and services can take these companies only so far. Companies such as WATEEN are already moving in this direction by providing triple play and mobile services.

    Source: Alcatel.

    In 2006 Wateen-Motorola WiMAX project in Pakistan created a lot of buzz all over the world. Many similar trials and services are being offered around the World. However it is still a big unknown if Wimax will be a success in emerging markets of Pakistan, India, Bangladesh and China. Can WiMAX deliver its promise of affordable broadband with wide coverage? Some skeptics think that WiMAX is more of a hype created by industry and not a reality yet. Of course adoption by public will be the proof of its success.

    In Pakistan, Wateen’s project is going ahead full speed and it might be available for public in later half of 2007, according to Business Recorder. According to some blogs and discussion forums Wateen may offer WiMAX to 22 cities in the first quarter of 2007.  Malaysian owned Dancom also started offering Wimax in Karachi, starting with the business community. Their prices are still high for consumers.

    Let’s take a look at the WiMAX technology and how can it meet broadband needs of today. See illustration below (source Telecom Magazine)  for end-to-end view of WiMAX.

    The WiMAX Forum, an industry coalition, defines it as:

    WiMAX is a standards-based technology enabling the delivery of last mile wireless broadband access as an alternative to wired broadband like cable and DSL. WiMAX provides fixed , nomadic, portable and, soon, mobile wireless broadband connectivity without the need for direct line-of-sight with a base station. In a typical cell radius deployment of three to ten kilometers, WiMAX Forum Certified™ systems can be expected to deliver capacity of up to 40 Mbps per channel, for fixed and portable access applications.

    Point-to-multipoint wireless solutions based on WiMAX could have the potential to address the performance and economic challenges associated with providing cost-effective broadband access in the infamous last mile. The graphic below (source Telecom Magazine) shows how a wide range of end users can be served using which of the IEEE standards e.g. IEEE 802.16e-2005 for data mobility.

    In addition to broadband Internet access, applications that are supportable with WiMAX include instant messaging, multiplayer interactive gaming, streaming media, VoIP, video and teleconferencing, and media content downloads.

    As explained here, a typical WiMAX operation will be comprised of WiMAX base stations deployed in a cellular fashion to provide ubiquitous coverage over a metropolitan area. WiMAX base stations can be connected to the edge network by means of a wireless point-to-point link or where available, a fiber link.

    Major Players

    Some of the major names include: Motorola, Intel, ZTE, Samsung, Alcatel, Alvarion, Sprint, Aperto Networks.

    From the US mobile phone proivders, Sprint has emerged as a champion of WiMAX. Sprint announced that mobile WiMAX is its 4G wireless technology of choice. It plans to begin building an entire Web-based phone network tuned to WiMAX starting next year. Intel, Motorola, and Samsung have invested heavily in the technology.

    Challenges

    There are plenty of issues which can bog down WiMAX. Here’s a brief overview.

  • Price obstacle - the equipment costs are still too high
  • Spectrum - in many countires the availability of spectrum for WiMAX is a major issue
  • Standards - issues of of interoperability between OEMs and carriers abound
  • Intellectual Property - As of September 2006, there were more than 1,500 patents distributed among 330 companies on WiMAX technologies
  • One wonders if 2007 is the year when Wimax becomes mainstream? At least Motorola believes so!

    Continue below to read some opinions from the Telecom Press. Read the rest of this entry »

    It is always fun to talk about feature-packed gadgets. As 2007 starts lets take a look at the future of mobile phones. A recent BusinessWeek report presents some interesting views about mobile technology and its drivers. Also see some other interesting futuristic slides here, Nokia’s aeon concept phonebased on Wibree protocol and Google’s idea of a free mobile phone with ads.

    So lets put together a wish list of an ideal phone / gadget of the future … music, high resoultion pictures and video, chat, speech-to-text, unified messaging, games, organizer, browser with intelligent alerts, e-commerce capable, location-aware (GPS) - did I miss anything? Oh yes these gadgets have to be reliable (no crashes please), light weight with much better battery technology (it tops the wish list in surveys worldwide) and it has to be “cool”. Another desirable feature is if your phone could keep your information secure in case of theft or loss - or better yet - somehow fights against snatching or stealing.

    As BW article aptly puts it: “Ultrafast networks and whizzy features are about to turn your cellphone into—well, your right arm”. The article notes that:

    The term “cell phone” certainly doesn’t do justice to today’s polymorphous handset used by early adopters in Korea and Japan. Two of the networks this phone may soon run on–Wi-Fi and WiMAX–don’t even use cell towers. That’s why Motorola Chief Executive Ed Zander refers to such gizmos, his own phones included, as “the device formerly known as the cell phone.”

    Nokia now calls its Nseries of smart phones “multimedia computers.” Samsung has settled on the term “mobile information terminal” for its most phone-like products. Two relatively new technologies may be crucial to putting the mobile device on equal footing with the PC. Wimax and IMS. I think both of these deserve a few posts of their own so I won’t go in details here.

    BusinessWeek puts in some words of wisdom by mentioning what happened a few years ago:

    If some of this sounds familiar, it’s because the ideas go back to the early days of the dot-com boom. PocketTV and location-based marketing were two recurring themes of the telecom bubble that culminated about five years ago in frothy European auctions of “third-generation” wireless spectrum. Carriers dropped tens of billions of dollars at these auctions, expecting mobile commerce to explode. But neither the hardware nor the clever applications were ready for prime time.

    It goes on to say that much has changed in five short years. For starters, wireless carriers and handset makers have made progress on hardware and software standards. That makes it easier to roll out applications involving text, voice, music, and video and have them work seamlessly with any device, whether it’s the slim Motorola Razr or Samsung’s Q1 Ultra Mobile PC.

    Future is in Asia

    It is well-known that South Korea and Japan have emerged as oracles of mobility. According to the BW article more than 3 million Koreans regularly use their mobile phones to log on to the giant Cyworld social networking site. Both Japan and Korea are starting to roll out speedy WiMAX data networks that can deliver wireless broadband access to entire cities.

    Read the rest of this entry »

    Triple play made its way to Pakistan. Triple Play service is a marketing term for the 3 services: high-speed Internet, Video (TV, Video on Demand) and telephone service - all over a single broadband connection. Wateen, PTCL and Nayatel are a few examples for which services are already or soon to be available in some parts of Lahore and Islamabad. The important question is if these services will be affordable and reliable?

    Wateen’s triple play offering was recently unveiled with its services for DHA Lahore, scheduled for commercial launch in January 2007. With all the digging work going on in DHA, it will be a relief for the public. According to the press release by Wateen:

    This project will provide DHA residents access to a breadth and depth of 21st century telecommunication and media services through fiber optic and wireless WiMAX networks. Services provided will include innovative telephony calling plans for local, nationwide and international routes, video conferencing/video telephony, true broadband internet (both fixed and wireless), DVD quality TV viewing and Value Added Services such as security & surveillance and interactive gaming.

    Pakistan Telecommunication Company Limited (PTCL) was awarded the country’s first IPTV operating licence in November 2006 and will be an major competitor. PTCL has yet to announce a timetable for rollout of the service. “We have some exciting plans that we will be announcing soon,” was all PTCL CEO Mohammad Bamakhrama would tell local press. According to discussion forums, PTCL will use Alcatel IPTV solution which is based on partnership with Microsoft.

    Alcatel (NYSE:ALA) also helped Naya Tel  of Pakistan to supply the region’s first fiber-to-the-home (FTTH) solution to deliver a high bandwidth triple play (voice, video and data) services to over 30,000 subscribers in the capital city of Islamabad. More on this here. Sample rates for Nayatel’s Internet service are:

    Now that we have these services available to select few, let’s monitor their success rate in 2007. Price is the main factor here and the one-time cost of the equipment (i.e. ONT) is likely to be the hurdle. If companies can asborb the equipment price in exchange for a contract, it can speed up adoption.

    As this post is being written, ITU is hosting TELECOM WORLD 2006 Asia in Hong Kong. It is one of the leading events of the telecom world, “bringing the world’s leading ICT companies, decision-makers, organisations and governments together, Telecom WORLD features a major exhibition, a high-level Forum and numerous opportunities for meeting, discussing, networking and getting business done.”

    One of the most interesting part of this event is the Forum where leaders (see a few leading speakers below) get together and discuss the technical, economic, social and policy matters surrounding telecommunications and ICT in general. The theme for this forum is Living the Digital World which seems quite appropriate given the fast-paced changes digital technology is making in the world.

    There are many hot topics in the agenda such as broadband triple play, digital content, Wimax etc. While each of the above topic merits in-depth discussions, I’d like to point out to one of the most important subject for the world today: Next Generation networks for Development. The decisions of today will impact how tens millions of people in developing countries with low income levels can join this information revolution. In my opinion, telecommunication related technologies have a vast potential to change these people’s lives.

    In the ITU conference the Telecommunication Development Symposium will cover how telecommunication can enhance development. More information about this theme is here. Excerpts below:

    Developing countries have made tremendous strides towards increasing connectivity by using fixed, wireless and mobile technologies. At the same time, there is wide consensus that the next phase of networked communications will be based upon Next Generation Network technologies that promise to achieve enhanced connectivity through cost-effective and sustainable infrastructure development and management.

    The concept of the Next Generation Network (NGN) covers the transition from current to future packet-based infrastructures, which is essential to take advantage of new opportunities for development and to bridge the digital divide. It spans both the fixed and wireless worlds so that the same services can be delivered no matter what access technology is used — whether it is a mobile device, a fixed network broadband connection or a fixed wireless connection. As a result, NGNs promise to foster the use of communications for greater socio-economic development, including E-education, E-health, and E-government, and enable countries to boost productivity and growth.

    Participants and attendees will learn what NGNs look like, which NGN applications can succeed in developing countries, whether existing business and regulatory models will be applicable, and whether developing countries can move beyond existing technologies to a state-of-the-art wireless NGN world. They will also discuss what kinds of handsets and devices will be most appropriate, how end users will pay for broadband services such as IPTV, VoIP and e-health services in an NGN environment, and what kind of NGN policy developing countries should embark upon.

    I hope that after this conference a concrete action plan is published and follwed so that we can see some results and its not all talk. The representatives of developing countries need to take the lead on this.

    ufoneadRecent news about decline in profit of PTCL has concerned many investors and shareholders. Will Ufone, mobile phone arm of PTCL, be able to fight back and reverse this trend? In this post I present a snapshot of Ufone. I’ll discuss its strengths, weaknesses, threats to its current position and its future prospects.

    Conclusion:Lots of potential if Ufone and its parent get its act together and execute well on their expansion and competitive plan. Read on to understand the basis for this conclusion.

     About Ufone

    Ufone (official name: PTML)  is a PTCL company and Etisalat of UAE owns 26% of PTCL. For more information about Etisalat I recommend reading this investment report from Shuaa. This report also includes details of how PTCL was privatised earlier this year in April. Please note: PTCL does not report detailed earnings results for Ufone. Therefore we need to look at PTCL results as a whole.

    Highlights of Recent Earning Report

    The annual 2005-2006 and first quarter 2006-2007 financial reports are available at ptcl website.

    For the first quarter 2006-07 ending Ocotber 30, 2006 the profit before tax was Rs.7.7 billion with net Profit of Rs.5.1 billion, which is 7% lower than that of the corresponding quarter of last year. For the full year 2005-06 after tax profit was Rs 20.78 billion which was 22% less than previous year’s profit.
    Dividend of Rs 3 per share was awarded which corresponds to an impressive dividend yield of 12.3% !

    PTML (Ufone) - a wholly-owned subsidiary has improved its financial performance compared to the first quarter of last year.  It added over 1.37 million new subscribers during July to September 2006 quarter, making its total subscriber base in excess of 7.52 million as of end September 2006. Ufone earned a net profit of Rs.666 million compared to Rs.389 million recorded for the same period last year.

    Ufone Huawei Mega dealNetwork and infrastructure expansion was carried out in 2006 progress and more is being planned to deploy WLL, Wimax etc. In the largest network expansion deal of Pakistan, PTCL signed up Huawei for a US$550 milliondeal which will allow Ufone to double its capacity. Financial reporting standards have also been improved. Details are in the directors report at PTCL website. Note that analysts expect Ufone to be an increasingly major contributor to PTCL earnings. This indicates the growth in wireless sector and the competition in fixed-line and other sectors.

    Weaknesses and Threats

    * Increased Competition from new investors (Mobile firms such as Telenor, WLL operators)
    * Poor service (see more on service quality and PTA interjections below)
    * Network capacity and quality
    * Management Style and approach

    How to Invest

    Through Pakistan mutual fund companies such as Abamco who offer funds with PTCL as holdings. For example: UTP-ISF fund has about 10% PTCL stock. You can buy stock directly as well but the Pakistan stock market is not without its risk. In 2005 the Pakistan stock market crashed amid rumours of scandals which are now under investigation (see this article from DAWN, read more here and take a look at the website of Securities and Exchange Commission of Pakistan).

    Here is a professional report (by Imtiaz Gadar - Merril Lynch, see the full pdf here which is from Sep 2006) about Ufone and PTCL (refrerred to as PakTel):

    “Having traded down materially during 1H06, PakTel now offers an attractive yield and substantial upside to our DCF valuation of Rs60. PakTel is marked down for its low earnings growth outlook from increasing wage costs and fixed line deregulation.

    High yield may not be sustainable if new strategic shareholder (Etisalat) decides to invest more heavily in wireless. Earnings transparency is below average as mobile earnings are not disclosed to the market. Main positives are potential for long term cost cutting, and good secular growth prospects in
    Wireless and internet given low teledensity (3.5%) and high GDP growth (7%).

    Clear direction from new owners, management stability and dividend payout certainty are needed to reignite positive momentum. Valuation score have improved with the continued slide in share price and we now rate the stock a Buy.”

    For more about Quality Of Service Issues at Ufone Read the rest of this entry »

    This is good news. INTEL Corporation has teamed up with Wateen Telecom and IT ministry of Pakistan to establish six tele-centres to provide low-cost connectivity for voice and data, ICT training and basic tele-medicine. This is part of INTEL’s “World Ahead Program”.

    Intel would initially establish six tele-centres at Attock, Multan, DG Khan, Sukkur and Gwadar. Intel Corporation vice president, John Davies said that the telecentres would be a key step in bridging the digital divide and making technology more easily accessible to citizens in Pakistan.

    ICT stands for Information and Communication Technology.  ICT is seen as an enabler for the developing economies. It is part of the UN’s Millenium Development Goals (MDGs). The question that arises is if ICT is just a good to have or is it really cost-effective? The International Telecommunication Union (ITU) has performed studies on the impact of ICT and came out with promising conclusions. Included below is an excerpt from their 2006 ICT development report.

    ICT Impact

    I am glad that INTEL has taken this initiative and from the news brief it seems to be a good plan.  Of course, technology companies understand the need and advantages of spreading interest in technology to less privileged areas of the world. For Wateen it is a good opportunity to showcase their cutting-edge Wimax technology implementation. And for the citizens of the above-mentioned cities it is a great opportunity. To use a cliche, it is a win-win situation.

    Here are some statements about this - taken from GovTech website:

    The Intel World Ahead program does more than just provide affordable PCs,”VP Davies said, calling it “a holistic program to help build everything from the right systems tailored to local needs, and critical connectivity, to sustainable local capabilities through quality education that makes a meaningful difference in people’s lives.” Chief Executive Officer (CEO) of Wateen Telecom said, “We are proud to work with Intel and the Federal Ministry of Information Technology and Telecommunications to bring the first ever WiMAX broadband deployment to Pakistan.We also expect to make available cutting-edge wireless broadband connectivity in selected urban and rural areas,” he added.

    With the recent broadband deregulation, many new technologies and companies have started providing broadband services in Pakistan. The pricing, availability and service quality varies by geographic location. The results of annual Internet Service Provider Quality of Service survey by PTA is a good starting point, though it includes dialup service as well as broadband.

    Below I provide a short summary of providers by technology. Comparing prices and plans is still a mind boggling task!

    • DSL: A technology based on copper lines i.e using plain old phone service and a special modem – works only if you are within a couple of miles of the phone exchange.
    o PTCL list of broadband providers
    o A few players: Micronet, Dancom, Habib Rafiq International, Cybernet World Online, WOL, Paknet, Maxcom
    o Sample Rates: Micronet – Islamabad – 256 Kbps for home for Rs 1000.

    • Wireless / CDMA: Offers Internet access using CDMA tecnology – it is fixed or limited mobility network. See more here.
    The dominant players are: WorldCall, DV Com, Telecard, Diallog.

    • Wimax: Coming in 2007 (Warid, WorldCall). See my post for details.

    • ISDN: By PTCL. Not conisdered consumer friendly in terms of application process and reliability. Details at http://www.ptcl.com.pk/isdn_bri.html

    • Cable: Limited urban infrasturcture availability.

    When this news broke in June it was covered by media around the world - after all its not often that Pakistan gets to be the testing ground for a brand-new technology. Sometimes it helps to be a latecomer in the game - you get to try out the latest trends without carrying the baggage from previous technologies which did not make the cut.

    Wimax Deal

    I find it ironic that the initiative is mainly controlled by Wateen (UAE) and Motorola ..  any Pakistani company or organization does not seem to be in the picture. Perhaps it is a good thing that the government is not involved in this (anymore than they really have to).

    Here’s an excerpt from InformationWeek about this project: (full article)

    Wateen Telecom, the major carrier in Pakistan, tapped Motorola to plan, design, and deploy the nationwide wireless broadband network as part of the country’s Broadband Pakistan effort to get Internet access to under-served areas. The company expects to support more than 1 million users, and Motorola’s initial deployment should be completed by year’s end.

    The scale of this project sets it apart from prior implementations which are usually city-wide. If the project claims are realized this will provide a much needed relief to the broadband hungry Pakistani public. It is well-known that technology projects rarely go as planned but I’m keeping my fingers crossed …Go Wimax!

    Wimax

    Learn more about the Wimax technology & standards here