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
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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
www.usf.org.pk
USF Co. Rules & Principles...
www.usf.org.pk
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
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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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