State of Telecom Industry in Pakistan

New data from TeleGeography’s 4G Research Service show that there were more than 600 WiMAX networks either live or at the planning/deployment stage by the end of 2009. The number of WiMAX deployments significantly exceeds HSPA and LTE deployments. Only around 300 cellular networks have been upgraded with HSPA technology and fewer than 70 operators have committed to deploying LTE equipment. However one point is note worthy: a relatively small number of these WiMAX systems offer wide coverage areas; most only offer local or regional service. This is certainly true for Pakistan!

The discussions on 3G and 4G hinge on a fundamental question. Will the investment make sense for the industry in near term? We know that in long-term, 3G and 4G technologies offer great benefits. As this article mentions, LTE, a version of 4G, uses the radio spectrum more efficiently, improving network capacity. That will be crucial as smart-phone use explodes, straining cell networks. Consider the case of Verizon in the US which is pushing for 4G/LTE. Much of the investment for Verizon is around the purchase additional spectrum. It spent $9.4 billion for that in 2008. The same concerns apply to 3G in Pakistan.

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PTCL is in the news as it reported earnings: a net profit of Rs. 5.354 billion for the half year ended on 31st December, 2009. This is a 13% growth compared to same period last year. At the same time, PTCL has withdrawn its high-speed Internet discount for students. In a recent press release, it announced that “PTCL is offering special 30% discount package for the students on 1 Mbps connection on high speed broadband services.” The previous connections of 2MBps and 4Mbps offered to students will be downgraded. To me, this business strategy seems odd. Why would you downgrade a popular package at a time when earnings are good?

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Apple announced iPad, a new device with features similar to iPod touch and iPhone but with a modified interface. and enhanced capabilities. The iPad is for surfing web, reading, watching pictures and videos, email and for accessing apps such as maps, contacts and a calendar.

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Music play a vital role in chillaxing human brain both in leisure or work and in youth its much more than that. Nokia’s recent study reveals that youth, the predominant majority of Pakistan’s total population, have expressed a high preference for music. According to it out of every 10 youth 8 prefers to have a Nokia music device. It also claims to take over the Sony Ericsson’s music device business share with its XpressMusic series.

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We yesterday mentioned in our tweet about Mobilink President Rashid Khan hinting on the leapfrog to 4G bypassing the 3G. He also tells about the broadband ‘infinity’ expansion plan and their plan with booming mobile banking concept. The complete story is hereunder.

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The latest PR affirms State Bank of Pakistan and PTA are closely working on a unified policy for mobile banking that will connect all banks of the country with cellular mobile operators for mobile transactions. No mentions about where the existing mobile banking framework will stand with it.

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Here are the key points, taken from Morgan Stanley Mobile Internet report of Dec 15, 2009.

The mobile Internet is ramping faster than desktop Internet did, and we believe more users may connect to the Internet via mobile devices than desktop PCs within 5 years.

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As the number of mobile applications increase its important for developers to understand the shifts in the mobile app development ecosystem. They need to know the best ways to capture value and to make money. Recently I came across a good presentation by VisionMobile called Mobile Mega Trends 2010, which among other things talks about the monetisation models and revenues. The first diagram from VisionMobile shows the 4 quadrants (device/cloud and pre/post-sales) which are important. The second diagram talks about the value and revenues in each quadrant. One of the key point is the value after sales which can come from inventory leasing, analytics, service distribution and service management.
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While browsing the easypaisa facebook fanpage, I got a chance to see watch a TVC, by far the best one I have seen so far. It is a Telenor commercial about an eassy on “The Future” written a by school going girl in early days of telephone.

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We often talk about 3G and the reasons why its important. One of the common need is for small groups to work together while on the move or in places where they don’t have broadband or WiFi hot spots. Wireless internet access of your own is what you need. MiFi is a pocket-sized router/modem made by Novatel Wireless that converts a 3G signal to Wi-Fi.

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The next in series of smartphones, Nokia E72 is in the market now. This is a device tailor-made for business and personal messaging and follows the traditions of E71 which has become quite popular because of its nifty features. To coincide with the arrival of the Nokia E72, Nokia has also released research revealing that more people rely on email than on traditional phone calls or text messaging when sending and responding to critical information. Nokia responsiveness research can be seen here.

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