Archive for July 7th, 2009

How Many Broadband Users Are There In Pakistan?

Published by Babar Bhatti on July 7, 2009 under Broadband Internet, Emerging Markets Telecom, ICT, Internet, PTA, PTCL, Pakistan, Telecommunications

PTA is trying to figure out the number of broadband users – not connections -  in Pakistan. According to PTA published numbers at the end of 2008 there were 267,180 broadband subscribers (see chart at the end) in Pakistan. So there’s a new study which has been commissioned by PTA which aims to find out the number of users who benefit from one connection. After a few months we expect to get the answer to the all important question: how many broadband users are there in Pakistan? My guess is that the multiplier is between 5-10 on average (higher for workplace and lower for households and youth) so as an estimate could be over 2 million broadband users in Pakistan.

You can see the details of the RFP issued by PTA in this pdf document. Excerpt below.

Generally a broadband connection is often used by up to 20 users per connection; therefore, these broadband connection figures have only limited relevance. PTA has decided to carry out a specific survey to estimate exact figures of broadband end-users in Pakistan.

The aim of engaging the services of a consultancy firm is to come up with a current multiplier factor that can be used and applied to the number of connections in Pakistan to derive an exact number of people who have access to broadband internet and are regular users of this service.

The required “multiplying-factors” would be desirable for:

  1. Fixed-line broadband services such as ADSL, HFC (Cable-Net), FTTx etc
  2. Wireless broadband service-users such as WiMAX, EVDO, Satellite etc.

Primary source of collecting information would be via detail survey forms, these forms could be distributed and filled-in by the consultant by means of Internet, telephone or face-to-face interaction with survey respondent.

The document goes on to explain the survey content and the requirements for data sampling. PTA is interested in finding out about the type of connection, network info and the timing and duration of usage. Of course the first thing needed there is a clear definition of what is broadband (256Kbps is considered broadband – source).

The charts below are taken from the PTA report for end of 2008. The numbers for EVDO are based on March 2009 data.

Progress Report: Peering And Internet Exchange Points In Pakistan

Published by Babar Bhatti on July 7, 2009 under Broadband Internet, Emerging Markets Telecom, Government Regulations, ICT, Infrastructure, Internet, PTCL, Telecommunications

Telecom industry experts have been stressing the need for local Internet exchanges inside Pakistan to avoid the unnecessary routing of local traffic to overseas and then back to Pakistan. See my post about broadband wish list for Pakistan for past coverage and the writings of Tariq Mustafa, dating back to 2007 where he makes a case for an IX for Pakistan.

Recently, in a ceremony coordinated by PTA, it was announced that PTCL and Trans World Associates (TWA) have signed an agreement on establishment of local Internet peering for routing of domestic email and Internet traffic. It was decided that initially the link between two parties will be of fast Ethernet providing a peering capacity of around 80 to 90 Mbps.

This is a good first step and every one who worked on this must be applauded for getting the ball rolling. However there’s a lot of work that needs to be done. The concept has to be expanded to a true local internet exchange (IX) which benefits all parties which need this. The current peering arrangement benefits two parties, PTCL and TWA. Tariq Mustafa explains at Telecom Grid Pakistan – excerpt below:

Peering is when two ISPs tie up circuits and clear mutual traffic free of cost – for mutual benefit – both parties stop paying a third party for traffic that they originate for each other.

An IX is when a set up is constructed where ANYBODY can hook up and exchange local traffic essentially at near zero cost (transmission costs are always everyone’s own headache to manage). An IX stands a far better chance to establish and promote the value of local contents. An IX also impacts the overall bandwidth market in terms of pricing and establishment of IX is generally resisted by the main players in fledgling bandwidth markets like Pakistan as in short run, it falsely appears, that an IX would take revenue away from main players. However, in the longer run, the overall data market grows with one or more openly and neutrally operated IXs in place and everyone benefits.

The hope is that we will see local IX established in near future.