State of Telecom Industry in Pakistan

Here’s another sign that ICT industry in Pakistan is maturing. The first Mobile Commerce conference is being held in Karachi on April 2 2008. The event has a star-studded guest list which includes PTA Chief, mobile companies Mobilink, Warid and Telenor (CEOs will attend), mobile commerce companies such as Amaana, Inov8, senior management from banks (both commercial and State Bank) and a few foreign company executives. Full details are available in this pdf brochure. You can also take a quick look at the image to see participating companies.

The sessions are well planned and include topics such as environment for mobile commerce, role of telcos, micro-finance, security and risk management, new trends and challenges. I expect it to be a very interesting and useful event.

I am looking for feedback about this conference and would appreciate if anyone can share observations and thoughts.

It is inevitable that more and more kids (say ages 8-16) will own a mobile phone. The very qualities which make a mobile phone very useful (personal, connected and media capable) can also make it a cause for concern for parents. How can parents know if their kids are using the phones appropriately? Previously we have talked about some issues but there’s a lot more to discuss about the generation gap, content which ends up on the phone (whether it is live content or from removable media) and the vulnerabilities to which kids can be exposed to.

Results of a recent AT&T survey revealed that 84 percent of consumers believe parental controls and safety tools are extremely or very important in keeping children safe while they use today’s entertainment and communications technologies. Nearly one-third (31 percent) of those adults do not feel that they have adequate knowledge of how to use those tools to protect children from today’s threats.

There was a recent article in New York Times about the generation gap caused by mobile phones in US. It quotes a social psychologist Sherry Turkle (a professor at the Massachusetts Institute of Technology, who has studied the social impact of mobile communications) saying that these trends are likely to continue as cellphones morph into mini hand-held computers, social networking devices and pint-size movie screens. The point made by the story is that parents need to learn about how kids are using new technology. Obviously the situation varies from culture to culture but the trend is the same.

There have been attempts by a few companies to design services which allow parents control over how their kids use mobile phones and services. But there’s only so much that a parent can control and the personal nature of mobile phone makes it very difficult to monitor its usage. As many would argue, it is a social matter which should not be tried to solve using technology. However there is still a case to be made for putting controls over how the phone is used if you are the one paying the bill.

The NYT article adds: Marketers and cellphone makers are only too happy to fill the newest generation gap. Last fall, Firefly Mobile introduced the glowPhone for the preschool set; it has a small keypad with two speed-dial buttons depicting an image of a mother and a father.

Towards this AT&T has Smart Limits which allows parents to set account thresholds and to filter out content. See a flash demo here and keep in mind that it is not a complete solution by any means. Hit the link below to see details about this from AT&T website:

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Ufone is back with another interesting feature, Ur Name Ur Number. It is on Ufone website but without much details for now. This is a common feature used by businesses around the world. In Pakistan I think this will keep many people happily busy. Thanks to Tee Emm for pointing out this!

One of the premiere events of mobile and wireless industry, GSM annual meeting is a place to watch for trends. In the event hosted at Barcelona last month, Yahoo got the award for mobile portal, Grameenphone for social cause (note the familiar logo) and SonyEricsson got the award for mobile device. The full list of winners for 2008 can be viewed here.

Best Mobile Handset or Device
SonyEricsson: W910 Walkman Phone
3UK: 3 Skypephone - Highly Commended

Best Use of Mobile for Social & Economic Development

Grameenphone: CellBazaar

Best Mobile Game

Cellufun: Call of the Pharaoh
Glu Mobile: My Hangman

Best Broadcast Commercial
Safaricom: M-PESA ‘Send Money Home’ campaign

Best Mobile Advertising
Crossmedia Avenue: AMF Pension – the MMS campaign

Best Use of Mobile for Social & Economic Development
Grameenphone: CellBazaar

Best Network Quality Initiative
RAD Data Communications: LA-130 Cell Gateway - Cost-Effective HSPA Backhaul

Best Service Delivery Platform
Aepona: Aepona Telecom Web Services Platform

Best Billing and Customer Solution
Bharti Airtel: mChek on Airtel – Mobile Payments Service

Best Mobile Music Service
Omnifone: MusicStation

Best Mobile Video Service
mywaves

Best Mobile Social Networking Service
BuzzCity: myGamma.com

Best Mobile Infotainment Portal for News/entertainment
Yahoo! Connected Life: Yahoo! Go for Mobile 2.0

Best Mobile Enterprise Product or Service
Microsoft: Windows Mobile 6

Best Mobile Messaging Service
Seven: System Seven 7.0

The GSMA Chairman’s Award
Sunil Bharti Mittal, Founder, Chairman & Group CEO Bharti Enterprise

In January I covered the 7-to-8 digit mobile subscriber number migration. There were some questions from readers about the implementation of this change. Now PTA has issued a well written clarification. The detailed explanation is shown below. It mentions that the change in numbers will be limited to CMPak, Instaphone and SCO. All other mobile carriers will not be impacted. 

Location Based Services (LBS)  are one of the hottest new emerging growth area and battlefield in North America, Europe and parts of Asia (Japan, Korea, Taiwan, among others). With the sale of personal navigation devices at an all time high and with increasing number of mobile phones with GPS capability, it will be an interesting area to watch. Some of the recent events such as Consumer Electronics Show in Las Vegas provided ample evidence of this.

There are many pieces of technology which make up this: better/cheaper devices, new value added services based on connected navigation devices, alternatives to GPS for location determination on the phone, CDMA vs GSM technologies and advances in mapping technologies.

Maps have come a long way in the last few years and the need for real time location-based information whether it be traffic or product inventory is acting as a catalyst. For a view of the situation of maps technology in Pakistan see this recent entry at Green&White.

Here’s a bit more on the recent industry events related to maps and navigation from TheDeal.com.

U.S. software giant Microsoft Corp. built up its arsenal in the battle against Google Earth with the acquisition Wednesday, Dec. 12, of U.K. online mapping service Multimap Ltd. for an undisclosed sum.

Microsoft’s purchase is the latest in a series of deals in the digital mapping industry. In October Nokia acquired U.S. car navigation software provider Navteq Corp. for $8.1 billion. Last month Dutch navigation device maker TomTom NV snared Tele Atlas NV, the Netherlands-based digital map maker, for $4.3 billion.

Seattle-based Microsoft said the acquisition would enhance its existing offerings such as Virtual Earth and offer future integration potential for a range of other services and platforms.

As more and more cellular phone makers incorporate the technology into their handsets, demand for digital navigation devices is expected to explode. California research group iSuppli Corp. valued the market at about $4 billion in 2006 and projects $16.5 billion in revenue by 2013.

As the new year starts research and media companies present their views on what the future holds. Over the next few days I’ll share some selected articles about the future of communication technologies. Here’s one from TMC.

The evolution of mobile devices to an open platform and the movement of Internet video into the mainstream are this year’s two macro trends that will have the greatest impact in the future, according to a report released on Monday by MultiMedia Intelligence.

This year marked a new transition of mobile devices into open platforms. Although it’s known for being a closed platform when it comes to allowing third-party applications, Apple’s iPhone started a new dynamic, and Google’s Android platform and a possible Java-based operating system are the next phase, MultiMedia Intelligence said in the report.

Another important development rounding out the macro trends of 2007 is Motorola’s recent investment in UIQ, a software platform based on the Symbian OS. In October, Motorola bought 50% of Sony Ericsson’s stake in UIQ, which is also the platform behind Sony Ericsson’s touch-screen smartphones. This means touch screens are likely to become a major focus for the phone maker.

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BusinessWeek Story. In Pakistan Nokia has the number 1 spot and Samsung faces strong competition. Motorola does not have a chance against Samsung and other Asian handset makers!

With Motorola (MOT) struggling for more than a year, Samsung overtook its American rival in 2007 to become the world’s second-largest handset maker [BusinessWeek.com, 11/30/07] after Nokia. Its global market share is up about three percentage points from last year, at 14.5% in the third quarter, compared with Motorola’s 13.1%. And for every quarter this year, Samsung set a new sales record, with the 115 million phones sold in the January-September period exceeding the 114 million sold during all of last year.

Samsung believes its record-breaking run is just beginning. This year, its sales are expected to top 160 million phones, up 40% from last year, and executives are confident the pace of its growth will be about double that of the rest of the industry next year, when they expect sales of 200 million. “The growth momentum is accelerating, and there’s no reversal in the trend,” says Samsung’s Executive Vice-President Chu Woo Sik.

Building on Cheap Handsets

The big question is whether Motorola can rebound and stop Samsung. New Motorola chief Greg Brown, who was chief operating officer before being named CEO last month, has spent the past few months tackling the company’s problems to try and restore the glory it had just after the Razr’s sensational debut in 2004. “Samsung will face challenges,” says mobile communications analyst Tina Teng at market researcher iSuppli.

Samsung’s top brass believe the company’s recent run is sustainable. That’s because Choi Gee Sung, a marketing expert who took over as Samsung’s telecom chief in January, has targeted the fast-growing market for cheap handsets, which wasn’t a priority for his predecessor, Lee Ki Tae, a former engineer.

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In  a recent interview with the media, Zouhair Khaliq speaks about Mobilink’s future expansion and investment plans and recent standing of the company among mobile and data service providers. Excerpts are presented below, full story here. As I have written before, Mobilink has been successful in 2 strategic directions. It has maintained its top position in mobile market by adding wireless subscribers. Secondly it has diversified into the broadband and data services market by acquiring Internet Service Providers such as DanCom, WOL, DVCom etc . Overall Mobilink continues to be a strong player and a good profit source for Orascom, the parent company.

In fibre optics, Pakistan Telecommunication Limited (PTCL) had been the only company that owned an optic fibre backbone. Mobilink has successfully introduced competition through the introduction of a nationwide network. Mobilink’s optic fibre backbone provides the perfect platform to Mobilink for connecting its customers nationwide with highest level of voice and data quality with more reliability.

Deployment of the national backhaul stands completed with full protection, making Mobilink’ optic fibre backbone fully protected/redundant. By providing last mile connectivity Mobilink has positioned itself as a one-stop shop for meeting all communication requirements of enterprises and individuals. The optic fibre network currently covers 6,500 kilometres and will be increased to cover another 2000 kilometres very soon.

“We are envisaging sustainable growth in Pakistan. With mobile penetration still at around 43 percent, the room for growth is immense. The growth is not only limited to mobile telephony, as there are huge opportunities in other fields like broadband (optic fibre, DSL, WiMax), LDI etc. This coupled with the enabling environment being provided by the Pakistan Telecommunications Authority ensures an excellent future for this sector,” he said when asked to comment on the company’s future plans in Pakistan.

Spotted this interesting article at LIRNEAsia.net. Nathan Eagle, who is developing a voice interface for the mobile internet, writes about the challenges of making mobile web useful for developing countries.

The Mobile Web is NOT helping the Developing World… and what we can do about it.
By Nathan Eagle | MobileActive.org

The phones that are designed and marketed for the ‘developing world’ today aren’t data enabled, they have no browser or any ability to function as a traditional data device. We’re dumping hundreds of millions of devices into these regions that are essentially crippled - and their legacy (the average life span of a phone in Africa is many times that of it’s Western counterpart) will affect mobile internet usage in these regions throughout the next decade. Furthermore, in the small Kenyan village where I live it’s significantly less than 1 in 10 phones that can support the traditional ‘mobile Web’ experience, and it’s probably closer to 1 in 1000 phones that have ever successfully connected to the web. Most of the phones I see in the village were originally manufactured well before 2003. (The most popular selling phone in my village is an old Ericsson that stopped being made back in 2001.) The local mobile operators should take some blame as well - many simply don’t have the equipment or expertise to role out a data network on top of their rapidly expanding GSM net. It took me over 10 days of phone calls with my local Kenyan operator to get my phone activated for their new EDGE network. Most people I know give up after the first couple of hours of configuration. And that’s assuming they actually have the right phone…

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After many months of the fastest growth ever, the slowdown has eventually hit the Pakistan mobile industry. The chart tells the story: since July the monthly additions have gone down. Mobilink and Telenor continue their strong growth trends and are set to be the leaders. Ufone growth was slow in Sep and Oct.

 Any explanations for this trend?

Activists in Pakistan are leveraging technology to organize and support their campaign against the martial law in Pakistan. Using the tools of mobile phones, SMS, Wikis, social networking and blogging, the activists have stepped up to fill the gap left behind by the absence of news and TV channels. I reported about the rising trend of mobile activism in the world in July and I asked a question that if this is something we will see in Pakistan in the short term. The recent turn of events has made mobile activism a sucessful reality in Pakistan. See other posts about mobile activism in Pakistan here and here.

Due to the low number of Internet users and the very limited broadband in Pakistan, blogs and other Internet based tools are not within the reach of the masses. Text messaging on the other hand has been very popular and with the 70 million plus mobile subscribers, this is a medium which is widely spread in Pakistan. Bloggers report that Saturday 3rd November saw the highest ever number of SMS sent with an average of 10 text messages being sent across the networks per subscriber.

Business Week reports about this Bloom of E-Resistance in Pakistan:

Relying on Text Messages
Indeed, for ordinary Pakistanis, the cell-phone text message has proved a saving grace, one not yet withdrawn by Musharraf. Internet penetration in Pakistan is low, but Pakistan is one of the world’s fastest-growing cell-phone markets, with user numbers growing 73% this past year. The country of 160 million currently has 67 million cellular subscribers, and, according to Pakistan watchers, in the past week many Pakistanis have been sending and receiving at least 10 text messages a day from relatives overseas who watch the international news on Pakistan and feed the information back home. A conservative estimate of 500 million text messages a day is a bonanza for cell-phone operators.

Along with writing on blogs and posting on wikis, bloggers are also making use of sms to report updates and send alerts. The blog by Teeth Maestro is using SMS2Blog technology as explained here:

We have enabled LIVE SMS-2-BLOG services allowing citizen reporters in Pakistan to directly update this blog by sending this blog, readers shall now be given live updates from the field as it happens. Join this blog’s Twitter Channel at: twitter.com/teeth

See this report from News which talks about Aurat Foundation’s plans to setup a sms based system for activism:

However, keeping in mind the fact that a majority of the population does not have access to the internet, members at a meeting held at the Aurat Foundation’s office decided to circulate their message of protest through text messages and work towards the restoration of human rights, the judicial system and the removal of the media blackout amongst other issues.

On the other hand, hundreds of people have also been registering their protests at pakvoices.net, gopetition.com and facebook.com

All of this is promising - it shows the resolve of the people and their determination to share information and make the best use of available tools.