LDI-backed Anti-voip Move – Now More Evil

There is nothing bad in an Internet world than to fear new technologies. In fact, fearing new technologies in general is a bad idea itself.

Pakistan – like the rest of the developing countries – stands strong as a potential beneficiary from the worldwide ICT related businesses provided a liberal Internet policy is adopted at all levels.

When PTCL was a monopoly in telecommunications in Pakistan and in came the cellular operators, positive things happened for the consumers – services improved, rates declined and availability got almost ubiquitous. Of course, the financial success that the cellcos met in Pakistan is an over-stated fact.

The left-behinds in all the high-water mark events mentioned above were the LDI operators who, while started off with great zeal and put in a lot of money too, found the telecoms environment too diluted and with much of undercutting going on. The rates (for termination inside Pakistan) went as low as 1 cent per min for wholesale carriers. A number of LDI operators burnt out in these conditions never to be seen again.

Later, around the beginning of this year (2008), sanity finally prevailed and the LDI operators and the authority decided that it was time to end the next to free rates to Pakistan termination traffic and raised the nominal tariff to 10 cents per minute. This move, which was essentially about LDIs putting their own house in order, alone injected a new life in their business. Salaries for the staff started coming in time and new equipment started being ordered by the operators.

Despite some undercutting, the rates in the international market for wholesale termination inside Pakistan are still above the 7 cents per minute mark and this leaves a considerable room for the operators to keep and take their business forward. According to rough industry estimates, only the recorded business is worth in access of 700 million minutes (or $35 million @ 5c/min) per month (grey traffic not included).

The LDI operators, in an effort to pump more out of this new found oil well, requested en mass the PTA to go after the grey traffic operators and invested in equipment that claims to detect and mitigate voip traffic in real time. This equipment has been on the international exit points in Pakistan. Suspected IP traffic was detected and investigated to see if it grey, or belongs to an un-intimated call center. This stuff was reportedly being done manually so far.

So far, the business-saving and law-enforcing arrangements by the LDIs and PTA appear to be logical and permissible. No one likes grey operators – the steal legal traffic from licensed players, do not pay taxes and do not help when LEA wants their help in tracing crimes and these guys are generally of, well, grey character themselves.

But when you see this item in today’s The News, it starts getting really uncomfortable:

PTA to start automated blocking of IPs
By By our correspondent
8/27/2008
ISLAMABAD: Pakistan Telecommunication Authority (PTA) will start automated blocking of Internet Protocol Addresses (IPs), involved in illegal termination/origination of international traffic, in a bid to check grey traffic flowing into the country. The facility will be operational within the next few days.

This was announced by PTA Chairman Dr Muhammad Yaseen in a meeting with the CEOs of major Internet Service Providers (ISPs) of the country held at the PTA headquarters on Tuesday.

He requested all the ISPs to declare their IP addresses along-with the antecedents of their customers so that illegal telecom traffic could be monitored. It was emphasised that the operators should oversee their customers to make sure they are not involved in grey traffic termination. He sought the operators’ cooperation to stem the menace of grey telephony.

The ISPs appreciated the recent steps taken by the PTA including an announcement in the press wherein call centres were asked to provide their IP addresses to the PSEB to ensure uninterrupted services.

Since the inception of technical facility in May 2008 at the PTA, the IP addresses found to be involved in illegal activities were being blocked manually and in the process, over 14 million minutes (worth around Rs100 million) have been saved on monthly basis. Now these would be automatically blocked if any IP, not authorised to carry voice, is found doing so. Under the current policy, only LDIs and international call centres are authorised to carry voice across national boundaries.

The problems with the above arrangements are many:

  1. There ‘real-time’ nature of the voip blocking apparently takes away the manual process and the sanity that can possibly accompany these efforts
  2. The regulator will now essentially be ‘peeking’ inside the contents of the traffic. True, they are looking for voice packets but one is justified to think, ‘what’s next’?
  3. PC-to-PC voip traffic – which unfortunately has been neatly wrapped in clouds of uncertainty by the regulator despite the industry literally begging for clearer guidelines on this topic – might get disrupted. The optimistic take here is that the Naurus gear would be intelligent enough to have thresholds that can distinguish between an occasional PC-to-PC voip caller and a bulk grey operator.
  4. For the network applications administrators, troubleshooting will now get more complex as the high-end IP transit operators are no more acting transparently and the traiff is getting actively peeked inside and the Naurus system would be fiddling with it if it passes the defined litmus tests of being grey voice.

The LDI operators are best advised to invest more into the reliability and reach of their network instead of lobbying the regulator to take effects that could be counter ICT development. The industry is clearly against illegal activities but at the same time, a liberal Internet regime is one of the prime enabler of a saner IT featuring future of Pakistan.

All are requested to keep an eye on their network performances with the possibility of network issues cropping up due to this imminent implementation of automatic voip traffic suppression.

And let us hope the equipment vendor is not making us a guinea pigs for their new software releases!

India to allow Internet Telephony

Update: Here is the pdf version of the press release issued by TRAI on this subject.Thanks to Wasim at TGP.

Very much related to my previous post, an interesting news from India is coming – possible opening up up Internet Telephony as a service. Pakistani regulators should give Internet telephony a pro-consumer thought and, for the umpteenth time, not follow but lead India in pro-consumer policy making.

According to an email from Frederick Noronha posted on Pakistan ICT Policy mailing list by Jehan Ara:

TRAI allows Internet telephony; STD tariffs may drop

New Delhi (PTI): Telecom users will soon be able make calls from their personal computers with Internet connection to a land line or a mobile phone and vice versa, if a TRAI recommendation in this regard finds acceptance with the government.
The suggestion by the telcom regulator, if accepted, will further boost competition in the domestic long distance segment and may lead to fall in STD tariff.

“It is envisaged that customers will ultimately benefit from cost effective and innovative Internet telephony service. These recommendations will put Indian telecom sector in tune with global trends. The grey market tendencies shall be curtailed,” TRAI said in a statement.

As per the TRAI recommendations, the STD service providers would be connected to Internet Service Providers (ISPs) through public Internet for the purpose and the two service providers would have mutual agreement for the same.

The move will permit calls from personal computers to fixed line and mobile phones. At present, a voice call can travel between two computers but not from a mobile or a fixed phone. This is expected to open channels of huge revenues for ISPs.

The Telecom Engineering Centre (TEC), a technical arm of Department of Telecom, will work out the number plan for the ISPs to enable them to offer telephone services.

“Telephone numbers from identified blocks shall be allocated to ISPs,Unified Access Service Providers, Basic Service Providers and Cellular Mobile Service Providers for internet telephony,” TRAI said.

With a view to make Internet telephony secure, TRAI said, all ISPs interested to provide unrestricted Internet telephony would install” Lawful Interception” equipment.

Internet-based LL Services

Fellow blogger and friend Babar Bhatti has complained about the problems he is facing in using Braintel’s local loop services (probably from out there in US). A reader has commented on this citing a PTA ban on such operations by the local loop operators in Pakistan.

The main issue here is the ability of the LL operator to replace the traditional copper for its end user or the expensive 1900 Mhz WLL frequencies for its end user with the ‘Internet cloud’. It is technically possible but the use of Internet for voice problem had its own fair share of cloudiness. At the center of this debate is the use of the word ‘long distance’ – whether it is to be taken physically or network-wise.

When last LDI/LL licenses were issued, the LL license itself was a cheap affair – though the spectrum (both for 1900 Mhz and 3.5 Ghz) was auctioned at high prices. At that time, a number of Internet savvy people – Brain included – took the LL license only banking on new VoIP technologies to come to their rescue later.

A few VoIP technology companies (a cross between operators and technology vendors if you will) had been constantly chasing the smaller LL operators (as described above) evangelizing the use of VoIP in local loop operations where the ‘affinity to local numbers’ is the actual ‘good sold’ and the profit comes in from volumes of such ‘numbers’ beings sold worldwide at fixed monthly rates (but not actually always being used).

These VoIP technology companies met some success during the past couple of years with a number of LL operators signing up them either as partners or just technology vendors. At that time, cellular industry was priming and people, operators and the regulator somehow had little time to attend to this possibly controversial issue.

Now that the market is nearing a tele-density of over 50% and market consolidation has started, these by-issues will get more attention (and probably get more debated).

PTA’s clarification on use of VoIP (available from PTA’s website and discussed on some related online forums) is of little help as it leaves room for guessing by the readers.

My personal position here is that given the non-deterministic nature of public Internet (specially when the bandwidth is not directly coming from a T1 operator) as a transport mechanism for real time traffic, such ‘Internet-glued’ LL services should be allowed – they will always be placed at number 2 in terms of voice quality and deterministic performance. Such services could be declared a new class of service with clear requirement of informing end consumers about emergency services not working on them as well as possible degraded voice performance due to third party packet networks that happen to lie between the end networks. Given a considerable population of expatriate Pakistanis around the world, these services stand a fairly good chance of catching on in popularity and can earn some part of the much needed forex for country by the local companies offering such services worldwide.

PTA Meets on PKNIC Issue

PTA has conducted a meeting of various stakeholders and industry representatives on the issue of PKNIC today in Islamabad. There have been a series of interesting posts on TGP on this topic since this morning and we expect a detailed unofficial minutes of meeting by one caring participant of this meeting soon.

DST in an Internet Age

Last night, Pakistani clocks have been moved forward by an hour to implement the Daylight Saving Time which is aiming at reducing some of our energy costs. DST is debatable, to say the least. Look up for the topic and you will see how many arguments exists in its favor and against.

That we have an evil energy crisis at hand (which is bent upon slowing us down even when we have just started to move forward as a nation) is a fact. And fighting a crisis of 21st century with a 100 year old trick might not be the coolest thing to do.

With teledensity in Pakistan being touted as the highest in the region and Internet finding a mainstay in our dailylives, we need to look at innovations that can conserve energy for the nation. The regular options that come to mind such as telecommuting, mobile transactions and remote control of energy spending gadgets might validly be a pass-time for the advanced world. However, I believe that the power of having almost half of the nation talking to each other via cell phones should be harnessed via a social campaign to reduce our power consumption.

Why can’t we have a ring tone campaign similar to ‘go musharraf go’ such as ‘bijli bachao doostoon’ (friends, lets save electricity) and social SMS campaigns saying ‘turn one power consuming item now’? Why can’t the chain-letter-loving nation send energy conservation messages to each other to raise the awareness on this critical issue. The connected Pakistan is a large, influential audience which, if it acts in harmony, can make big changes happen.

TeleCON 2008

Global TeleCON 2008 was held in Karachi on 29th and 30th April 2008 at Sheraton Hotel, Karachi. The conference was organized by Shamrock Conferences and was sponsored by the cellular and other telecommunication companies. It was a two days event with a dinner and cultural evening at the end of Day 1. Here are my personal observations of the event and round up of the presentations and talks I attended.

Disclaimer: My employer was the one of the main sponsors of the event. I was able to attend Day 1 of the event only and missed the Day 2. Views expressed here are my own and not of my employer.

My experience for Day 1 was mixed. Some presentations were really good and thought provoking like the one given by Dr Amir Mateen of Cisco Systems Pakistan where he talked about how great the broadband vacuum is in Pakistan and how unprepared the local contents are and that in the absence of structured local contents, people will make up their own contents (read social networks) and in doing so, there is a real danger of a whole new generation getting carried away in the roman Urdu flood and how this threatens the Urdu script and the associated heritage.

Sajjad Haider, Director Networks, Ericsson’s presentation later in the day was also great where he detailed case studies in which operators’ business cases that were negative turned positive due to better power management in terms of turning off RF carriers during low-traffic hours, turning to solar energy etc. In the backdrop of the current energy crisis, it made an absolutely interesting listening.

Mr. Mudassir Hussain, Director Telecommunication Wireless, MoITT’s presentation was a demonstration of HATR – Human Assisted Text Readout technology. :)

Presentations by both Mr. Zouhair A. Khaliq, President & CEO, Mobilink and Mr. Hasnat Masood, Director Corp. Communications, Telenor were disappointing. At least from Zouhair sb, I was expecting a ‘talk’ instead of a corporate brochure readout. Babar has hit the bull’s eye when he wondered if these were self-promotion activities. When an event is named as ‘Congress’, it makes all sense to put aside the bragging and talk about technology, trends and issues. You get your subtle publicity for your company anyway but why poison your neutral views with the unnecessary logo banging? Telenor presentation was done on a black background with dark blue colored fonts which were unreadable to the audience and required the presenter to read it out for them.

Presentation by Mr Adnan Asdar of Multinet was probably not very well delivered due to it getting fast-forwarded / short time but it talked about the whole telecoms infrastructure industry of Pakistan and it openly showed achievements and landmarks of all of its competitors. It was nice to see images of competitors landmarks, maps with due credits provided appear on the screen.

My favorite presentation of the day was by Mr. Furqan Qureshi, General Manager, Wateen Telecom . Though it was not immune from the ’self promotion’ virus that was making rounds that day in the ‘congress’, he was probably the best presenter in terms of delivering the contents to the audience and knowing what was going on his slides when. He talked about how Wateen is going to Mars to reach their customers and how ‘every morning the CEO and nine of his close associates go thru the emails and telephone calls’ to fix customer issues. He also announced that Wateen has ’stopped charging’ for the full year in advance for its wireless broadband services which are now available on a discounted rate.

The young Mr. Syed Abid Ali, Consultant PTA, Six Sigma gave an intro (with the mandatory Motorolla details!) about the 6 sigma hoopla and its application (and interestingly where not to apply it). He was neutral and that was pretty relieving. During the question break, it was fun to see someone mischievously ask Abid about why Moto is failing these days if it was so good with the six sigma? :)

Mr. Noel Kirkaldy, Reg. Director, Wireless Broadband (ME&A) had an eye-candy presentation and the usual well-delivered presentation (what else do you expect from someone like him). He was smart when he repeatedly played on the theme of Pakistan being the first in the entire world to take up a country-wide Wimax roll-out. He declared LTE as an evolution and Wimax as a revolution much to the subtle nay head moving of Sajjad Haider of Ericsson whose presentation was about how LTE is more likely to fix the economics of future networks.

The Tube Trouble and Why its a Good News

The You Tube blocking (orders by PTA to ISPs can be found here) in Pakistan has taken the local blogosphere by the storm – for obvious reason. The news was broken and extensively discussed at various local mailing lists.

The highly sticky video website contributes as much as 1/10th of the entire Internet bandwidth according to some estimates. That’s a crazy big statement.

Every technology blog that has any Pakistani connection has a post about this major disruptive development. While most of the fellows are obviously mad on this blocking, my take is that we might be better off having this issue. The persistent problem (of Internet censorship done the wrong way) is not being intermittently flashed to us any more – instead, this event throws it right into our faces.

That Internet censorship is bad and useless is an established fact but that it happens worldwide in both developing and developed worlds is even more established fact. In the absence of compelling Internet applications in Pakistan, Internet remains the sole killer application for the broadband mass uptake the government appears to be so concerned about.

Hence, given all the boom that Pakistan is experiencing right now (and hopefully after the recent elections results of which have so far pleasantly surprised both Pakistanis and the rest of the world), it is important that we ensure that Internet remains the platform that is relevant to the population and that the Internet consumption keeps an upward consumption trend. The system needs to graduate on this front and move towards improving our infrastructure to be able to keep up with the bare minimum implementations of the various rulings given under the law of the land by the higher courts (which, no doubt, need a big and continuous help that will help them understand the technical intricacies of the cyberspace).

This blockage is huge in terms of impact. Everyone will feel it. From the end users to the media companies and micro content producers to the civil society relying on the powers of You Tube and packet video prevalence, everyone is going to talk about it. Now is the time stop using Cisco ACLs and use layer 4 solutions where the filtering must happen.

I believe this will force the PTA and the government (and the trigger happy PTCL’s PIE) to upgrade their infrastructures so that the delicate balance between civil liberties and our societal sensitivities is well kept.

Broadband Penetration – MoITT, USF @ Work

Universal Service Fund (USF) is the company formed to make use of the USF money that PTA has been generating out of the booming telecoms market of Pakistan. So far, USF has worked towards using its funds for the spread of voice services in the under-served markets of Pakistan. Of late, Ministry of Information Technology & Telecommunication has intended to guide USF to do the same towards increasing broadband penetration too.

USF, after some initial work, has concluded that there are no particular areas that could be defined as ‘under-served’ in terms of Pakistan and rather the entire Pakistan is under-served. USF has now asked MoITT to pass a ‘determination’ towards the same fact allowing USF to utilize the funds anywhere and everywhere in Pakistan.

MoITT has published a 39 page study document on the web which seeks to establish this fact (that the entire Pakistan is under-served in broadband services). A consultation session was held in Islamabad yesterday to discuss this matter with the industry. The proceedings and details of the session are still to come out but here are my initial takes on the document and its contents:

The  major conclusion points of the documents are:

  • Pakistan’s broadband penetration is very low
  • Currently there are around 100K Broadband subscribers which need to be taken to 1.6 million by 2010 (1% of population)
  • This low penetration is earning bad scores for us under the WSIS measuring criteria & there is a strong need to improve the same
  • Three approaches have been suggested for the GoP’s intervention in this ‘dismal’ state of broadband affairs:
    • No intervention – leave it to market; slow broadband growth expected
    • Bundle with Basic Services – only rural areas will benefit; existing broadband provides will loose
    • Tackle issue with a new format – dedicated efforts are expected to yield better results; divided in various phases

The document assumes or maintains that fixed broadband is a dwindling trend and wireless broadband will finally prevail (page 23). While this is true for the last mile domain, the infrastructure is ALWAYS wired (read fiber). The guys at the MoITT need to be pointed to this omission in consideration. Pakistan need to have a good wired infrastructure before we can decide which of the two last miles options (wired or wireless) is good for us.

The study also repeatedly mentions the similarity between low tele-density and low broadband penetration. However, the applications/demand side difference between the two (voice and data) is repeatedly ignored. While it is true that the gap between 2.7% tele-density (from where our telecoms boom started off) and current 50% tele-density was one of the reasons for the boom, it was the application (voice) that was ready to exploit this gap. In the case of broadband, a similar gap exists and this gap is what the study is considering as an opportunity. However, as obvious, the difference between our last success (in cellular voice) and current challenge is that of application – do we have compelling applications that will drive the growth that can ride this gap?

The document also does not considers demand creation at all. While supply end enhancements (by way of USF subsidies towards network deployments etc) are more than welcome, a significant portion of the efforts must go towards demand creation activities. Mandatory use of electronic facilities in the business circles, tax cuts for ISPs interconnecting with each other, financial benefits to private TV channels to host streaming servers inside Pakistan, creation of public/open Internet Exchanges etc are all example of such efforts.

IXP in Pakistan

PTA is soliciting proposals for Consultancy Services on the issue of establishment of local Internet Exchange Points in Pakistan.

The last date of submission of such proposal is around the end of Feb 2008. Let us hope PTA gets good consultants to get them going in the right direction and speed.

In this relation, here is an interesting presentation on IXP by Guarab Raj of SANOG and PCH fame.

Google Zeitgeist Ignores Pakistan?

google-zg.jpg

Update: This has now been fixed. A bunch of thanks to Omar Ansari and Badar Khushnood for doing their bits.

Google remains the barometer for measuring what people are doing on the Internet en mass. Google’s Zeitgeist country-level breakdown page provides a useful (and often funny) view of what are Internet users doing in a given country as a whole.

Somehow, Pakistan has been removed from this page. The entry for Pakistan used to reside at:

http://www.google.com/press/intl-zeitgeist.html#pk

but is not available now. This might be a short hiccup due to some unavailable data or a permanent removal. The later, obviously, is disturbing for us in Pakistan. Heck, even Afghanistan is being considered to be included in the list.

Let us wait for some time and hope we get our trends back at the page.

PTA gears up for IX and Peering Initiative

It comes as a stress reliever to read that PTA is finally inching towards pushing the local Internet industry towards a saner state where local traffic gets cleared locally without wasting the countries foreign exchange and without costings the end users hundreds of useless milliseconds of RTT delays.

PTA has issued an RFP that seeks consultation services on the topic of local Internet exchanges and peering points. I am not sure what direct role can PTA play in private peering as it is mostly a two-party arrangement for their own respective good with little intervention required by any third party. However, the IX domain will greatly benefit from PTA exerting its role and responsibility in bringing major players on-board.

Also, the move is going to have a direct financial impact on the top-of-the-chain IP bandwidth providers like PTCL and TW who currently do not discriminate between local and transit bandwidth and make money for both types of the bandwidths alike. With IX infrastructures in place, customer IP requirements for local needs will drop down in the short term but, as a rule, IX infrastructure will promote the overall appetite of the industry for more transit bandwidth as a whole.

Let’s hope for the best.

Quality of Local Tech Reporting

The quality of the technology related journalism in the local press has been questionable for obvious reasons. Having a number of good friends in many local media outfits, I can say with confidence that none of them have any dedicated technology reporters or journalists. This excludes those who actually work for technology magazines like Spider and Netmag. This lack of technology reporters results in reports that are poor at best and grossly incorrect at worst.

Consider, for example, this news item in today’s The News International. The report starts off with an incorrect title – calling MNP a PTCL issue rather than a PTA issue. That is not all, the report actually presents the scenario as if the MNP thing was some wire that suddenly got snapped and ‘has failed’. Using the words fail or failed repeatedly, the reports gives an impression as if the failure has been officially concluded by someone and that the feature is about to be taken back.

Quite misleading if you see how some of the companies are actively using MNP to their advantage.

A better reporting would have shed lights on both success and problems of MNP and would have talked about as to how the unawareness amongst the subscribers and incorrect or unavailable subscriber documentation are major problems in wide adoption of MNP.

The Annoyance Spread

autopilot profitPTCL has quietly enabled a voice mail service on high revenue land line customers without seeking their consent. It is a clear bid to make revenue on unsuccessful (due to no answer or busy state) calls. This has widely been reported across the press and in the local telecom blogosphere. The process of disabling the answering service has also been published at various forums.

But this is all we already know. However, as we recover from the long Eid and 18th October tragedy and business gets back in full swing, the annoyance is now starting to show its real spread.

Most businesses get a telephone bill more than Rs 1,400 a month – the minimum amount arbitrarily set by PTCL to have the answering service enabled. Most of the business phone lines are often busy and have lots of customers call to these places all the time. With the ‘annoyance’ in place, each time someone calls the number, he hears a useless voice mail prompt (which, interestingly, is useless in a multi-user environment – voice mail services are always personal services) and gets charged for.

With millions of ‘engaged calls’ now turning into ‘matured calls’ (for the purpose of billing), this is proving to be a unique/ugliest idea (depending on which side of the fence you are) that plays on the muscles of PTCL’s might and the helplessness of the consumers.

The Case for an IX

Internet Exchange - Needs CollaborationThis is about establishing local clearing of Internet traffic. A concept so basic to the Internet that unfortunately remains grossly neglected (or not acted upon due to misplaced fears and priorities by the parties involved).

Before you shouts the word PIE, please note that local clearing should generally have two traits

  • it must happen inside the country
  • avoiding (or minimizing) expensive for-ex costing international links
  • at next-to-free bandwidth rates – using the SKA (sender keeps all) or cheaper local bandwidth models

Focus Karachi (2007) for example:
Three known names to average broadband/dialup users: Worldcall, Cybernet & Multinet. Despite some efforts of optimized routing, the majority of the traffic between these well-known ISPs is exchanged outside Pakistan. The first one is on Transworld (now becoming a mini PIE on its own due to a good amount of ISP customers on its network), the second is on PIE and the third on its own IPLC towards KL in Malaysia.

Short Term Problems:

  • Uniform (high) Internet prices across the industry
  • Unnecessary 20% to 35% for-ex spending on Int’l circuits that could be sold to the right customer at a premium
  • No cheap ‘local bandwidth’ available to users
  • No incentive for ‘remaining local’ to users or content publishers
  • Network outages beyond Pakistan result in network outages inside Pakistan

Long Term Problems:

  • No impetus for establishing local data center for Internet hosting needs (excluding vertical DS such as Banking etc)
  • As more of the country embraces Internet, ’short term problems’ identified above will get magnified.
  • No mirrors of popular contents – even those willing to place their contents near the Pakistani Internet users are amazed at the absence of local IDCs.
  • No real development of Urdu and other regional languages contents on the Internet. BBCUrdu to remain flag bearer of Urdu on Internet!

As time passes and Internet subscription of these players increases, they will have an automatic incentive to interconnect locally between themselves on private funds driven by savings-as-profits targets. This is considered a positive development and we are all for it.

However, the absence of a neutral NAP or IX discourage non-ISPs willing to get benefit from local cheap Internet bandwidth because the bigger players might want to preserve  their respective ‘exchange-locally-charge-internationally’ status.

Neutral NAPs and IX need data centers and meet me rooms so it might sound like a catch22 at first. However it is not. With at least two to three facilities based optical fiber Internet service providers in all three major cities of Pakistan, a feed-the-goose thinking by the bigger players is the need of the day. Grow the base market and the business will grow in turn.

Karachi again: There is one TIV certified data center in Karachi now. It has a decent MeetMe Room. We have fiber providers in Karachi who can a) use it for themselves to come there at the MMR and b) offer dark core solely for this pull-them-to-IX effort to at least one of their sizable competition. And in here lies the catch. Do they have the heart big enough to do that? For towel-manufacturers head, this is a tall order.

Could someone think loudly on the same lines in Lahore? and Islamabad?

Comrades, help us all think aloud!

p.s I have nothing against towel-manufacturing industry. Just using it as a metaphor.

You’re Invited!

As a regular visitor to this blog and someone interested in Telecommunication & Pakistan, you are invited to join the online community forum called TGP – the Telecommunication Grid of Pakistan where we share the industry news, news-clippings, whispered rumors, technical insights and consumer gripes.

Telecom Grid Pakistan
Visit this group

UIN Charges Unchanged – for now?

PTCL’s latest offers page details some new local call charges plan. Calls in the evening – apparently targeted towards female dominated domestic population – will now cost twice but will last a full hour. This is a tit-for-tat reaction to the Mobilink and Telenor’s Rs 5 an hour and Rs 4 an hour on-net plans.

The UIN charges, as mentioned in point 4 of the announcement, are to remain unchanged at Rs 2 for unlimited time. Unless there is still something cooking, at least for now, the users can relax that the multi-metered Internet calls are not here (yet!).

p.s: The classroom and the student shown in the graphics at the PTCL site bear no resemblance to either Pakistan or UAE. What happened to the principle of local relevance!

Telecom Activity Roundup in AJK & NA

This report from Daily Times provides a good activity roundup relating to new Telecommunication initiatives in Azad Jammu Kashmir and Northern Areas. From the report:

In the wake of October 8 earthquake, the PTA granted temporary permission to mobile phone companies operating in Pakistan for provision of services in quake-hit areas. Later on, they were invited to obtain permanent licenses for AJK and NAs against the ILF of $10 million each.

Subsequently four mobile companies Mobilink, Ufone, Warid and Telenor acquired licenses by paying 50 percent of the license fee ($5 million) each upfront as per the terms of the payment. The $20 million (Rs 1.2 billion) collected by PTA from four operators has been deposited with the AJK Council Secretariat and Chief Secretary, NAs in the ratio of 77:23 based on the population of the two areas. Their share was Rs 927.696 million and Rs 277.104 million respectively. In view of special circumstances, PTA has not deducted any fee from the amount.

The fifth mobile license for AJ&K and NAs has recently been issued to CMPak (Paktel) for which the fees would be deposited under the same arrangements. All five mobile companies will pay remaining 50 percent (i.e. $5 million each) in 10 equal annual installments.

It may be mentioned that, with the introduction of mobile phone services people of these areas are getting enhanced communication facilities. So far, cellular operators in AJK and NAs have provided one million mobile connections. Mobile service is available in the following areas of AJK including Bagh, Bhimber, Bharhing, Kotli, Muzzafferabad, Palandri, Rawalakot, Mirpur, Dhirkot, Ghari Duppatta, Hattian Bala, Dhudyal, Barnala, Kakra, Islam Gargh, Dirkot, Chamankot, Baloch, Sehnsa, KhuiRatta, Hajira, Tarar Khel, Abbas Pur, Jaraee, Rajdhani. Thraowchi, Puna, Sumani, Charoi, Fatepur, Barnala, Paniola, etc. In Northern Areas Gilgit, Hunza, Chilas, Skardu, Shigar, Danyor have been provided mobile services.

Moreover, Special Communication Organisation (SCO) which was the major provider of telecom services in the region till very recent is working on its several developmental activities including Rural Telecom Uplift Project Phase-II for provision of 80,000 telephone lines (along with 266 km Optic Fibre), enhancement of GSM capacity by 65,000 lines, laying of 570 km optic fibre, 26 digital exchanges with VSAT connectivity and laying of outside plant (OSP) in NAs.

SCO is also planning to lay optical fibre cable link for international connectivity between China and Pakistan.

SCO has also taken initiatives to provide Internet services to these areas in the form of Dialup, DSL and CDMA 1X services by entering into O&M agreements with existing providers in Pakistan.

Telenor & MNP

Image005.jpgThe image below is from an extremely low income area – infact, a slum in Karachi. A small cabin-shop that deals in mobile phones, PCO and allied services is serving the population of the katchi abadi.

Owning a cell phone is pretty common even in the very-low income groups in (at least) the bigger cities of Pakistan – thanks to the celluar services boom we are finding ourselves in these days.

As could be seen from the poster visible in the image below, someone who cannot even spell Telenor correctly has pasted these posters across most of similar shops in the slum announcing the MNP facility. When I inquired about this from the shopkeeper whether this is a service exclusive to his outfit he replied in negative saying instead that this is being ‘done by the company’. As we can well decipher, it does not seem like a Telenor’s official announcement but it is almost certain that Telenor has at least some amount of resources dedicated for hooking up even the baseline low ARPU customers into its folds via the MNP route most probably via some sort of market agents.

Dialup Internet Access To Cost More

Reports in the media are pointing towards a possibility that PTCL has plans to start charging for the UIN access (access to special Internet Numbers called University Internet Access Number that start with the characteristic 131 digits) from a single call for the entire call duration to a time-based pulse charging mechanism.

Shahzad Ahmad of Bytesforall.net has summed up the case at PakistanICTPolicy forum:

This is horrendous, outrageous, unethical and unacceptable. This is not ON PTCL! Government of Pakistan, you can NOT approve this evil plan. Would you like to block and limit people’s access to Internet in the country?

How could PTCL take back the affordability of non-metered calls facility for dialup Internet access? Curse of monopoly!  In a country of 160+ million people, where number of Internet users is already very low, just around 4 million and now PTCL wants to further reduce this number? This is just lust for more money and profit. This is robbery by PTCL on Internet users.

For many years now, ICTs have been one of the major focus of the Government of Pakistan. May it well be due to market dynamics, modernization drive, peculiar circumstances, the country seen some massive, though unbalanced growth in different areas of ICTs penetration in the country. Pakistan formulated its first ever IT Policy in 2000, followed by an ambitious Action Plan.

Since then, a huge investment has been made in ICT infrastructure in the country.  Special facilities like non-metered Internet calls (where only one local call will be charged for any amount of time), even for long distance from small towns were quite unique steps for providing Universal Internet Access. We still remember the days, when Dr. Ata ur Rahman, then Minister of IT would take a lot of pride in his each TV appearance, always mentioning this revolutionary step. Indeed, at that time non-metered calls contributed very positively, providing global Internet connectivity to remote cities and towns in the country. In fact, this resulted Pakistan having the most extensive Internet coverage among the countries of South Asia.

We actually never believed in this TV report breaking the news that PTCL is taking back the facility of affordable non-metered calls and now a call will be charged every 15 minutes of the connectivity time. This means that for each 24 hours of internet usage, the user will pay extra for 96 calls at the rate of approximately Rs. 2.50 per call making the bill to be around Rs. 240/- in addition to ISP charges.

Currently, a user pays about Rs. 300 per month for 24 hours unlimited dialup connection and then telephone bill costs around 35-40 calls a month. This makes the Internet connectivity very possible at reasonable cheap rate in this country, where larger population is low income.

In the changed scenario, where PTCL wants to charge more money for each dialup call, believe me students community will be the most affected. People who need 24 hours connectivity for email/Internet will suffer immensely.

Let’s join hands to raise voice to stop PTCL from its money grabbing tactics. It is so silly that a dialup connection will become much more expensive than a DSL.

Just to let you all know that Internet Service Providers Association of Pakistan (ISPAK) has issued a protest call on Monday, the 24th September, 2007. They plan to talk to Pakistan Telecommunication Authority as well. If nothing happens then ISPAK plans to move Supreme Court of Pakistan.

We request all concerned civil society organizations, relevant associations, individuals and media outfits to please help stop this evil plan of PTCL to block and limit people’s access to Internet. Yes, it indeed is blocking people’s access to Internet. Lust for grabbing more money from poor people of Pakistan is actually not going to contribute any good to the overall socio-economic development of the country.

If PTCL goes ahead with its evil plan, we propose “take-back-the-net” campaign and country wide protests. We will involve all relevant associations, IT Industry, media and general public to stop this. If PTCL insists on continuing with this plan then Government of Pakistan should provide alternatives to Internet users in the country. PTCL’s monopoly is unacceptable.

Mobilink embraces data

The long on-going, almost over-due project was declared signed and closed with Alcatel-Lucent. Daily time has the full story here. This is going to be the second major countrywide Wimax project, the earlier one being deployed by Wateen and uses Motorola’s gear. The project, whose financial size or commercial availability dates has not yet been publicly disclosed, reportedly makes extensive use of the strong channel sales partners that Mobilink has developed in the rewarding cellular market of Pakistan over the past many years.

The next similarly sized announcement should come from PTCL which is still talking to a number of solution vendors in this domain. Apart from these three large scale projects, a number of other entities, some of which are in the security infrastructure of the country, are deploying Wimax technology for their respective requirements.

There are till a number of players like Telecard and Cybernet who won the 3.5 Ghz frequency in the open auctions during deregulation but are not moving ahead with their Wimax adventures for want of some business case precedence and internal priorities.