Better Networks

More Connectivity

Expansion of OFC to
Union Councils
9th July 2019

1
No. Topic
1 USF Introduction
2 Existing USF OFC Programme
3 Future Expansion Programme – OFC to Union Councils
4 Recommendations for Demand Side
5 Modalities

Open Discussion /Q&A

Agenda No 1: USF Introduction
• Despite massive growth in the telecommunication
sector, many areas remain Un/Under Served

• Difficult Terrain
• Sparse Population
TELCO • Harsh Weathers
E X PA N S I O N USF
•

S U B S I DY
REVENUE

Availability of Electricity
• Availability of Backhaul
• Poor Logistics
• Poor Business Case
• Challenges of Law &
GOOD BUSINESS CASE POOR Order situation
USF Objectives & Policy Guidelines

▪ As per Section 33B sub-Section 2 of the Telecommunication Act :

“ The Universal Service Fund is to be utilized exclusively to provide

access to telecommunication services to people in the un-
served, under served, rural, remote areas and other
expenditures to be made and incurred by the Federal Government in
managing USF. ”
 NG-BSD Broadband Optic Fiber
Next Generation Broadband for
Special Projects for Digital
Sustainable Development • Fixed Broadband Extension of Fiber Optic Inclusion
⚫ High Speed Broadband for application
• Primarily through DSL,EVDO & WiMAX Connectivity to unserved areas
to extend the benefits of modern technologies
Coverage to population and to the marginalized sections of the society
commuters where license is not required

BROADBAND PROLIFERATION & DIGITAL INCLUSION

Agenda No 2: Existing USF OFC Programme
USF OFC Programme – Connecting THQs and Towns

• More than 8,893 kms of fiber to be laid

to connect 201 Tehsil HQs and Towns
Across Country
• Around 7,200 Kms OFC Laid

----------- Existing OFC

----------- OFC through USF
Existing OFC Programme - Status
Target THQ/ Kms of OFC Implementation
S. No. Package Target Districts
Towns required Status
Badin, Dadu, Khairpur, Kashmore, Nawabshah, Sanghar,
1 Sind 17 1,069 Completed
Shikarpur, Sukkur, Tharparkar, Thatta
2 BP – 1 9 887 Nushki, Chaghi, Kharan, Mastung Completed
3 BP – 2 21 1,396 Kech, Awaran, Lasbela, Gwadar 75%
Kalat, Kharan, Panjgoor, Khuzdar, Hoshab, Bahawalnagar, Layyah,
4 BP – 3 18 1,361 75%
Khushab
Killa Abdullah, Musakhel, Pishin, Loralai, Sibi, Ziarat, Zhob, DI
5 BP – 4 18 1,285 Completed
Khan, Killa Saifullah
Bolan, Dera Bugti, Jhal Magsi, Kohlu, Nasirabad, Sibi, Attock,
6 BP – 5 19 786 Completed
Rawalpindi
Lower Dir, Chitral, Shangla, DI Khan, Batagram, Malakand,
7 KPK 35 619 25%
Mansehra, Swat
FR Bannu, FR Lakki Marwat, FR Tank, North Waziristan Agency,
8 FATA – P1 24 653 Contracted
South Waziristan Agency
Bajaur Agency, Mohmand Agency, Khyber Agency, Orakzai Tender
9 FATA – P2 40 837
Agency, Kurram Agency, FR Peshawar, FR Kohat Launched
Total 201 8,893
 Utilization of USF OFC Networks
BALOCHISTAN SIND
Installed Capacity Installed Capacity
Project Node Project Node
Capacity* utilizing Capacity utilizing
Taftan 2.5G 25% Keti Bandar 622 MB 50%
Nokundi 2.5G 60% Ghorabari 622 MB 50%
Mashkhel 2.5G 60% Mirpur Sakro 2.5G 50%
Dalbadin 2.5G 60% Garho 2.5G 60%
Baluchistan Chaghi 622 MB 50% Sujawal 2.5G 60%
Package-1 Ahmedwal 2.5G 60% Chaur Jamali 622 MB 10%
Jati 622 MB 20%
Noshki 10G 60%
Shahbandar 622 MB 10%
Dringar 10G 60%
Badin 622 MB 60%
Mastung 2.5G 70%
Tando Bhago 622 MB 70%
Dasht 622 MB 20%
Judho 622 MB 60%
Norak Gulistan
Abdul Rehaman Zai
2.5G
10G
10%
10%
All nodes Jam Nawaz Ali 622 MB 40%
Berani 622 MB 75%
Pishin
Manzaki
2.5G
2.5G
20%
20% being Tando Adam
UmerKot
622 MB
2.5G
40%
60%
Bashore 2.5G 20%
Kuchlak 10G 90% utilized Sindh Package
Chachro
IslamKot
2.5G
2.5G
30%
60%
Bostan 2.5G 10%
Nagar Parkar 2.5G 20%
Kan Bangla 2.5G 75% Sobhedero 2.5G 70%
Kawas 622 MB 60% Setharja 622 MB 20%
Zindra 622 MB 60% Sui 622 MB 30%
Baluchistan Ziarat 10G 80% Johi 622 MB 10%
Package-4 Sanjawi 622 MB 75% Nawab Wali Muhammad 622 MB 10%
Hernai 2.5G 75%
Kot Digi 622 MB 20%
Duki 2.5G 70% Nar Chundhko 622 MB 10%
Lora Lai 10G 80% Rohri 622 MB 20%
Qila Saifullah 10G 80% Salehpat 2.5G 10%
Gawal 10G 80% Khanpur 622 MB 10%
Karam Din Karez 2.5G 10% Thano Bula Khan 622 MB 10%
Mir Ali Khel 2.5G 10% Tangwani 622 MB 10%
Zhob 10G 80% Daulatpur 622 MB 20%
Musa Khel 10G 70% Ranipur 2.5G 20%
Karam Sherani 10G 70% * Per Node Mirpur Khas 622 MB 70%
Daraban 2.5G 70% Mirwah 622 MB 10%
USF OFC Package-2 : Tender Launched

40 Unserved THQs
& Towns
837 kms of OFC
Agenda No 3: Future Expansion Programme - OFC to UCs
Deep Fiberization - Why ?
• Broadband is essential - 10% growth in Broadband increases GDP by 1%

• Modern Digital Services – e-health, e-education, e-government etc. require reliable,

low latency, scalable high-speed connectivity – possible only through OFC

• Massive Bandwidths, provided by OFC, cater for existing telecom infrastructure as well
as future 5G networks and services

• Strong Backhaul is of national strategic importance

Telecom Policy 2015

“ There should be a presumption in favour of the use of fibre over microwave in
backhaul and fibre over copper in wireline access to meet growing fixed and
mobile broadband requirements. ”
Fiberization Trends
• FIBERIZATION being promoted in all developing and developed countries that focus on
ICT based economies

-: MALAYSIA :- -: INDONESIA :-
Investment of USD 250 million for Bakti’s Investment of USD 400 million to
“National Fiberization and Connectivity lay optic fiber to connect its small remote
Plan, in addition to USO, for villages and islands
smaller islands

FIBERIZATION

-: INDIA :- -: CHINA :-
USOF funding to connect 250,000 Gram- Twenty thousand last-mile fiber optic
Panchayats with 100Mbps Broadband connections every single day - to support
connectivity building the planet’s largest 5G mobile
network for US $180b
OFC – Tower Connectivity Status

• In Pakistan less than 10% towers have Towers connected with optic fibers

OF connectivity 90%
80%
• Reason - Higher CAPEX
• Operators resort to point-to-point
Microwave radios which suffer from :-
o Lower Bandwidth – lower service quality 27%

o Traffic choking with increased 10%

subscribers/demand
Thailand Malaysia India Pakistan
o Spectrum utilization
Telecommunication
 Proposed Programme - Fiber to Union Councils
▪ Background
• With launch of USF NG-BSD program - High speed backhaul to Telecom Sites & Access Nodes is
essential
• ~90% of Telecom Sites are without Optic Fiber Connectivity
• Deeper Fiberization to support future uptake for 4G/5G services

▪ Preliminary study conducted by USF revealed that 3,140 out of

6,061 UCs are without Optic Fiber Connectivity

USF Target 1,050

Optical Fiber Connectivity status of UCs
Total UCs in Pakistan 6,061
UCs having OFC and Node 1,050 3,140
1,871
UCs with OFC passing through but without Node 1,871
UCs with out presence of OFC- USF Target 3,140
Connected Fiber but not connected No Fiber
Unserved Union Councils
Fiber Passing Through Union Councils
 UCs Without OFC Backhaul Service
UCs
UCs with Passing
Province without
OFC but no Node
OFC
Balochistan 266 205
Sindh 551 363
Punjab 1,915 1,015
KP + FATA
408 288
(Major Towns)
Total 3,140 1,871
Agenda No 4: Recommendations for Demand Side
 Recommendations:
• Subsidise optic fiber connectivity to all unserved Union Councils (UCs), in a phased
manner, connecting in UCs inter-alia

• towers of Mobile Broadband,

• rural schools,
• local government offices,
• health-care centers,
• WiFi hotspots, etc.

• Open access of OFC to all stakeholders. Modalities of Fiber Infrastructure and

Bandwidth sharing open for discussion

• Ensure wherever USF subsidizes its “Next Generation Broadband for Sustainable
Development” program, only Optic Fiber to be used in backhaul to connect the towers
- at least the hub-sites.
Agenda No 5: Modalities
a) Surveys
▪ A detailed on-ground study through external experts/consultants to ascertain:
• Union Councils which are underserved with respect to optic fiber connectivity
• Identify beneficiaries of USF’s OFC connectivity
• Determine OFC route parameters such as length, type of soil, etc.
• Recommend plant and equipment for universal connectivity to nodes, sites
and end beneficiaries
• Setup a priority of projects in line with the NG-BSD Program and budgetary
constraints

▪ Based on the study, country wide optic fiber packages shall be created and bid out
after Board’s approval

OF operators are requested to share their network details with USF

Survey Scheme Lot – 9
61 UCs

Lot – 7
137 UCs

Lot – 1
Lot – 6
200 UCs
95 UCs

Lot – 3
310 UCs

Lot – 8
Lot – 4
54 UCs
192 UCs

Lot – 5
249 UCs
Lot – 2
249 UCs
b) Qualification Criteria

▪ Bidders to have valid Licenses for OF Infrastructure AND Services

▪ Universal Service Fund Contributor
▪ Consortia fulfilling the condition of valid license for OF Infrastructure AND
Services and led by USF Contributing Operators
c) Project Timelines
▪ Tender for USF OFC Projects to be launched once the survey is completed,
with each project to connect ~300 UCs by laying ~1,000 kms.
▪ Submission of bids for first project- 45 days after tender publication
▪ Submission of bids for subsequent project- every 30 days
▪ Implementation time line of 18 months with 4 implementation milestones
Feedback Received
▪ Regulatory Duty and Taxes on OFC plant and Equipment
▪ Tax rates for Telecommunication Sector
▪ Law full Interception
▪ Right of Way
▪ Identification of termination points and WiFi Zones in UCs
▪ Project implementation timelines to be 24 Months
▪ Open Competitive Bidding – No Reserve Price
▪ CAPEX as well as OPEX
▪ Difficult projects, prone to delays- Capping of Liquidated Damages to 10% of Subsidy
Open Discussion
Q&A
Thank You