Local Loop

Services
72
Pakistan TeIecommunication Authority


iighl of vay and co-Iocalion, aie najoi aieas
due lo vhich LL segnenl is nol gioving.
Hovevei, nain sellack lo IocaI Ioop giovlh
has leen an exceplionaIIy high giovlh of
noliIe seivices. Acquisilion of conpanies,
vhich aie non-opeialionaI and aie nol doing
veII, can lake pIace in any lusiness secloi.
Since lhe ILL secloi is nol doing so veII
lheiefoie sone conpanies aie leing lakenovei
ly lhe nev ones. RecenlIy lvo conpanies
(Lasy Ihone and WOL) have appIied foi
liansfei case. The Aulhoiily has appioved
Lasy Ihones liansfei in }anuaiy 2OO7. Theie
aie noie conpanies in piocess of having
neigeis. Theie aie six conpanies, vhich aie
non-opeialionaI and have shovn no
L
nca! Lnnp scgmcnt In
Iakislan ienained undei nonopoIy liII 2OO3,
vheiely ITCL vas piedoninanl in each
segnenl of Iakislans leIecon secloi.
The Iakislan TeIecon Aulhoiily avaided 38
fixed IocaI Ioop Iicenses vilh lhe deieguIalion
of leIecon secloi, hovevei, foi one ieason oi
lhe olhei lhe secloi couId nol lake off. So fai
onIy 12 LL conpanies oul of 38 Iicenses issued
aie opeialionaI vhiIe lhe iesl of lhe conpanies
aie eilhei non opeialionaI oi al sone slage of
pie-opeialion. The opeialionaI LL opeialois
have lolaIIy insignificanl sulsciilei lase and
lheii fuluie is aIso nol veiy liighl unliI lhey
inlioduce sone alliaclive vaIue added
seivices. Such Iov nunlei of opeialionaI
conpanies oul of Iaige nunlei of Iicensed
conpani es i s due lo nany ieasons.
Sunnaiizing issues faced ly lhe LL secloi il
can le said lhal high cosl of inleiconneclion,
liansil exchanges and liansnission nedia in
addilion lo dulies and laxes on inpoil of
connunicalion equipnenl and olslacIes in

Tab!c - 19
5tatus nf Lnca! Lnnp LIccnsccs
IuIIy OpeialionaI

1O

IailiaIIy opeialionaI

2
Inspeclion Undeivay

3

Tiansfei Cases

3

RoIIoul DeadIine Due

14

Non - OpeialionaI

6

TolaI Licensee 38
incIinalionlovaids slailing of lheii lusinesses and have aIsonol conlacled ITA vilhany concein.
Hovevei oving lo lhe difficuIlies leing faced ly lhe LL opeialois, one yeai exlension has leen
givenly lhe Aulhoiily.
The giovlh pallein foIIoved
ly fixed Iine sulsciileis had
nol leen veiy snoolh ovei lhe
Iasl seveiaI yeais. Theie vas
incieasing liend in fixed Iine
conneclion fion 2OO4 lo 2OO6.
The sulsciileis junped fion
4.5 niIIion in 2OO4 lo 5.2
niIIion in 2OO5 and lhe secloi
nainlained posilive giovlh in
lhe nexl yeai as veII. The
unexpecled giovlh silualion
in IocaI Ioop is nainIy alliiluled lo inlioduclion of viieIess IocaI Ioop and decieasing piices of
noliIe seivices. Al lhe end of 2OO6-O7 lolaI fixed Iine conneclions slood al 4.8 niIIion acioss
Iakislan. This aIsoincIudes conneclions of nev IocaI Ioop opeialois.
ITCL is sliII nainlaining ils viiluaI nonopoIy in fixed Iine segnenl vilh aInosl 98 of lhe lolaI
naikel shaie and cuslonei lase of 4.6 niIIion sulsciileis. IoIIoved ly NTC vilh appioxinaleIy
O.1 niIIion sulsciileis. WoiIdcaII, iain, Union Conn and NayaleI accounl foi a lolaI of no noie
lhan 3O,337 conneclions. WhiIe Iooking al lhe piovinciaI silualion, Iunjal has naxinun shaie in
fixed Iine conneclion, vheie aII lhe nev opeialois in addilion lo incunlenls ITCL and NTC aie
pioviding seivices. aIochislan in ieIalion lo olhei piovinces aIlhough has Iovesl fixed Iine
conneclions lul lhis facloi is sonevhal conpensaled ly viieIess IocaI Ioop seivices.
ITCL, vhich cuiienlIy slands
al 4.6 niIIion sulsciileis, has
leen Ioosing ils cusloneis in
favoi of WLL and noliIe
seivices. Theie had leen a
diop of aInosl 297, 835
conneclions in jusl one yeai.
WoiIdcaII and iain Liniled
FIxcd LInc
73
Pakistan TeIecommunication Authority
Local Loop Services
FIgurc - 43
FIxcd LInc CnnncctInns (2004-2007)
4
,
5
O
1
,
1
7
1
5
,
2
2
7
,
5
3
1
5
,
2
4
O
,
O
1
2
4
,
8
O
6
,
2
O
6
4,OOO,OOO
4,2OO,OOO
4,4OO,OOO
4,6OO,OOO
4,8OO,OOO
5,OOO,OOO
5,2OO,OOO
5,4OO,OOO
2OO3-O4 2OO4-O5 2OO5-O6 2OO6-O7
Tab!c - 20
FIxcd LInc CnnncctInns by CnmpanIcs (2007)
Punjab 5Indh Ba!nchIstan NWFP Tnta!
ITCL 2,746,466 1,2O2,OO4 124,199 6O3,535 4,676,2O4
NTC 61,765 25,778 3,346 8,776 99,665
WoiICaII 1,481 9,267 - - 1O,748
iain 6,O89 - - - 6,O89
Uninon Conn. 2,5OO - - - 2,5OO
NayaleI 11,OOO - - - 11,OOO
Tnta! 2,829,301 1,237,049 127,545 6 12,311 4,806,206
veie lhe fiisl IocaI Ioop conpanies vho slailed lheii opeialions lul couId nol add nuch lo lheii
sulsciilei lase. iain Iiniled is pioviding inlegialed voice and dala in seivices lhiough ITTH.
WoiIdcaII vhich is opeialionaI lolh in Kaiachi and Lahoie is pioviding voice, inleinel and calIe
TVloils sulsciileis. Unionconnunicalionis sliII nainlaining lhe sane sulsciilei lase evenaflei
noie lhan a one yeai of ils opeialions. NayaleI, vhich is Iicensed foi piovision of IocaI Ioop
seivices in ITR iegion onIy, has slailed ils seivices in nain conneiciaI aieas of fedeiaI capilaI
IsIanalad. The conpany is offeiing voice, videoand dala vilhsingIe calIe nainIy lolhe coipoiale
cIienls. So fai NayaleI has conpIeled Iaying of ils coie filei oplic vhich is aiound 7O kns Iong.
Woik is sliII in piogiess foi Iaying lhe disliilulion iing filei oplic. The conpany has nov noie
lhan 11,OO sulsciileis foi ils liipIe Iayeied seivices in Iess lhan 8 nonlhs. The nonlhIy chaiges foi
seivices aie quile conpelilive lul lhe iniliaI cosl of piovisionof seivice al ils dooislep is high.
efoie lhe deieguIalion of lhe secloi,
lheie had aIvays leen a Iaige unnel
denand, iecoided ly lhe incunlenl
opeialoi ITCL, ovei lhe yeais. This
denand kepl on incieasing liII 2OO5.
Hovevei vilh noliIe loon and
nev IocaI Ioop opeialois slailing
lheii seivices affecled lhe pending
denand negaliveIy. The leIecon
consuneis due lo highei cosls, noie
line foi inslaIIalion and hassIe of liII
paynenl slailed iesoiling lo sulslilule seivices incIuding viieIess seivices. Today lolaI pending
denand has cone dovn lo 6O,673
fion ils highesl in 2OO5 vilh lolaI
nunlei al 375,235 shoving a diop
of noie lhan8O inlvoyeais.
IoIIoving lhe gIolaI liends, lhe
fixed leIedensily in Iakislan vhich
vas incieasing since 2OO1 lecane
slagnanl in 2OO4 foi lvo yeais and
lhen slailed faIIing dovn. 2OO7 is
lhe fiisl yeai vhen lhe fixed
leIedensily diopped fion 3.4 lo
Pendlng Demand
|lxed Te|edenslt
2
5
1
,
2
3
7
2
1
4
,
3
6
1
1
9
O
,
2
5
4
2
6
7
,
3
6
4
2
5
O
,
9
4
4
6
O
,
6
7
3
3
7
5
,
2
3
5
O
5O,OOO
1OO,OOO
15O,OOO
2OO,OOO
25O,OOO
3OO,OOO
35O,OOO
4OO,OOO
2OO1 2OO2 2OO3 2OO4 2OO5 2OO6 2OO7
FIgurc - 44
PcndIng Dcmand fnr FIxcd LInc CnnncctInns
74
Pakistan TeIecommunication Authority

Local Loop Services
FIgurc - 45
FIxcd !Inc Tc!cdcnsIty
1.3
1.4 1.4 1.4
2.1
2.O
1.7
1.6
O.O
O.5
1.O
1.5
2.O
2.5
3.O
3.5
4.O
2OO3-O4 2OO4-O5 2OO5-O6 2OO6-O7
RuiaI Uilan
(3.O) (3.4)
(3.4)
(3.O4)
3.O4 shoving a diop of aInosl 1O.
AIlhough ITCL had slailed Iosing ils
cusloneis lul il vas expecled lhal nev
I i c e ns e e s vo uI d na na ge l o
conpensale lhis diop, vhich is nol lhe
case. The iuiaI leIedensily hovevei
did nol expeiience nuch deciease in
lhe Iasl fev yeais as conpaied lo
leIedensily. WhiIe Iooking al lhe
piovince vise leIedensily Sindh is
Ieading vilh 3.4 leIedensily
foIIoved ly Iunjal 3.2, NWII 2.4
and lhe Iovesl leIedensily of 1.6 in
aIochsilan.
WiieIess LocaI Loop seivices veie inlioduced in Iakislan aflei deieguIalion of IocaI Ioop secloi in
2OO4. The Aulhoiily auclioned fiequency foi conneiciaI opeialions of WLL seivices. A lolaI of 17
conpanies von WLL Iicenses oul of vhich six opeialois ollained WLL Iicense in aII 14 leIecon
iegions aflei vinning lhe fiequency. Wheieas sone snaII opeialois von fiequency and ollained
WLL Iicenses in one oi lhe olhei iegions. Oul of lhese 17 WLL conpanies 5 (ITCL, WoiIdcaII,
TeIecaid, Cieal eai and uiiaq) aie fuIIy opeialionaI vheieas lvo conpanies (Waleen and
MyleI) have leen issued connencenenl of seivice ceilificale. WLL nelvoik in lhe 45O MHz and
19OO MHz has pIayed a veiy inpoilanl ioII in lhe giovlh of fixed Iine leIephony especiaIIy in lhe
iuiaI aieas. The nosl leneficiaI aie lhe aIochislan and NWII piovinces vheie fai fIung leiiains
aie difficuIl foi fixed Iine coveiage and noliIe coveiage is yel lo ieach sone pIaces. The WLL is
aIso pIaying an inpoilanl ioIe in lhe giovlh of dala seivice. CDMA lechnoIogy in lhe 45O MHz
and 19OO MHz is aIso pioviding good quaIily Inleinel seivices. The iecenl deveIopnenl is lhe
inlioduclion of WiMax lechnoIogy ly WLL opeialois, vhich viII nake avaiIalIe high quaIily
lioadland dala/Inleinel seivices.
Today aII WLL opeialois having 45O MHz and 19OO MHz specliun have Iaunched WLL seivices
in lhe iespeclive leIecon iegions excepl DVCon. In lhe 3.5 CHz land, Waleen, uiiaq and MyleI
have ioIIed oul nelvoiks using WiMax lechnoIogy and conneiciaI seivices viII soon le offeied.
In lhe 479 MHz land, opeialois have yel lo Iaunch lhe seivice due lo Iack of off lhe sheIf syslens.
Hovevei, il is inpoilanl lo nole lhal specliun in 479 MHz vas von ly inleiesled pailies al nuch
Iovei piice as conpaied lo45O MHz lecause of lhe nonavaiIaliIily of conneiciaI syslens.
WIrc!css Lnca! Lnnp
3.2
3.4
2.4
1.6
O.O
O.5
1.O
1.5
2.O
2.5
3.O
3.5
Iunjal Sindh NWII aIochislan
FIgurc 46
PrnvIncc wIsc Tc!cdcnIsty
75
Pakistan TeIecommunication Authority
Local Loop Services
Subscrlber Ana|sls
Penetratlon
The sulsciileis of viieIess segnenl of
IocaI Ioop seivices aie incieasing
conlinuousIy since 2OO3. Today lheie aie
1.7 niIIion sulsciileis of WLL seivices
in Iakislan. The secloi has vilnessed
7O giovlh duiing 2OO6-O7. The
segnenl hovevei expeiienced highei
giovlh iale in lhe pieceding yeais.
ITCL is cuiienlIy Ieading lhe WLL
naikel as veII vilh naxinun shaie of
53 foIIoved ly 26 shaie of TeIecaid.
As in noliIe segnenl lhe piepaid lo
poslpaid ialio inWLL conneclionis veiy
high. IeopIe piefei lo have a piepaid
conneclion. In addilion lhe WLL
opeialois aie aIso pioviding Iayphone
faciIilies lo lhe geneiaI pulIic. Theie aie
a lolaI of 225,98O viieIess ICOs in
Iakislan. A Iaige poilion of TeIecaid's
lolaI sulsciiplion conpiises of ICOs,
vhich aie voiking in a nunlei of
iegions. AII WLL opeialionaI conpanies aie pioviding ICO faciIilies as veII.
CuiienlIy viieIess leIedensily slands al
1.1, vhich vas O.66 in 2OO6. Shaie of
WLL leIedensily in lolaI leIedensily
vas aInosl negIigilIe vhen lhe seivice
vas inlioduced in 2OO4 lul loday lhis
shaie has gone up lo aInosl 2.3. The
penelialion aIso giev ly aInosl 7O
duiing lhe iepoiled yeai. WiieIess IocaI
Ioop is nov hoIding up lhe faIIing
leIedensily of fixed IocaI Ioop as lhe
viieIess segnenl of lhe IocaI Ioop secloi
is peifoining quile veII.
1
7
,
3
9
1
2
6
4
,
8
2
8
1
,
O
2
5
,
3
2
8
1
,
7
O
2
,
O
9
8
1
,
9
3
7
,
9
4
4
O
2OO,OOO
4OO,OOO
6OO,OOO
8OO,OOO
1,OOO,OOO
1,2OO,OOO
1,4OO,OOO
1,6OO,OOO
1,8OO,OOO
2,OOO,OOO
2OO3-O4 2OO4-O5 2OO5-O6 2OO6-O7 'Aug- O7
FIgurc 47
WLL 5ubscrIbcrs (2006-07)
76
Pakistan TeIecommunication Authority
Local Loop Services
FIgurc - 48
WLL 5ubscrIbcrs by CnmpanIcs
895,914
443,914
3O4,61O
57,66O
O
1OO,OOO
2OO,OOO
3OO,OOO
4OO,OOO
5OO,OOO
6OO,OOO
7OO,OOO
8OO,OOO
9OO,OOO
ITCL TeIecaid WoiIdcaII Cieal eai
FIgurc - 49
WLL Tc!cdcnsIty
O.O1
O.16
O.66
1.1
O.O
O.2
O.4
O.6
O.8
1.O
1.2
2OO3-O4 2OO4-O5 2OO5-O6 2OO6-O7
Netuork Coterage
The opeialionaI WLL conpanies
eiecled noie siles in oidei lo inciease
lheii nelvoik coveiage duiing 2OO7.
eing lhe Iaigesl WLL opeialoi ITCL
eiecled aiound 1,5OO siles foIIoved ly
TeIecaid and WoiIdcaII. ITCL has
naxinun ceII siles in Iunjal, lhan in
Sindh, NWII and aIochislan.
WoiIdcaII is nol pioviding seivices in
aIochislan vheieas Cieal eai is
pioviding seivices onIy in Iunjal. As
fai as lhe cilies aie conceined
naxinun coveiage is again ly ITCL vilh
11,488 cilies lovns and viIIages coveied ly ils
nelvoik acioss lhe foui piovinces, foIIoved ly
TeIecaid and WoiIdcaII. Cieal eai vhich is
pioviding seivices onIy in Iunjal is coveiing 5
cilies lovns and viIIages inlhe piovince. As fai
as lhe TehsiI headquaileis aie conceined
aInosl 111 TehsiIs headquaileis have WLL
seivices nelvoik.
Wilh lhe incieasing sulsciileis and
nelvoik lhe WLL opeialois aie
enhancing lheii saIes lase ly incieasing
lhe nunlei of fianchises. In lhis iegaid
TeIecaid nainlains naxinun fianch-
ises vilh 3O1 fianchises acioss Iakislan
foIIoved ly ITCL lhal has a conpaialIe
fianchise nunlei vilh WoiId caII i.e.
236 and 211. AIlhough Cieal eai has
opeialions onIy in Iunjal vilh onIy 5
cilies coveied, il nainlains a nuch
liggei fianchise nelvoik of aInosl 137
fianchisees acioss Iunjal. Iiguie - 51
shovs WLL fianchises piovince vise.
77
Pakistan TeIecommunication Authority
Local Loop Services
5
19
12O
182
244
293
696
1,439
O
2OO
4OO
6OO
8OO
1,OOO
1,2OO
1,4OO
1,6OO
Cieal eai WoiIdcaII TeIecaid ITCL
2OO6
2OO7
FIgurc - 50
WLL Cc!! 5Itcs by Opcratnrs
(2006-07)
Tab!c - 21
WLL PrnvIncc wIsc CItIcs/Tnwns/
VI!!agcs Cnvcrcd by Opcratnrs
(2007)

Iunjal Sindh NWII aIochislan
ITCL 6,544 2,632 1,64O 672
WoiIdcaII 35 2 2 -
TeIecaid 9O 58 17 4
Cieal eai 5 - - -
FIgurc - 51
WLL FranchIsccs by Opcratnrs
(2007)
137
211
236
3O1
O
5O
1OO
15O
2OO
25O
3OO
35O
Cieal eai WoiIdcaII ITCL TeIecaid
78
Pakistan TeIecommunication Authority

Tarlffs of WLL
Futurc Fnrccasts
LocaI Ioop laiiffs have aIso slaliIized vhen conpaied vilh pievious yeai. Duiing pievious yeai,
WoiIdcaII inlioduced fiee on-nel caIIs (foi a Iiniled line peiiod) vilh Iine ienl of Rs. 175 vhich
vas foIIoved ly TeIecaid. WoiIdcaII aIso inlioduced fiee on-nel Iong dislance caIIs foi off-peak
peiiod foi a Iiniled line peiiod. Al lhe nonenl, TeIecaid is offeiing fiee on-nel nalionaI Iong
dislance caIIs foi off-peak peiiod. Lalei on, WoiIdcaII ended ils inlioducloiy offei and Ievied one
paisa pei ninule onon-nel IocaI caIIs.
RecenlIy, WoiIdcaII has ievised ils IocaI Ioop laiiffs and is offeiing sane laiiff foi IocaI as veII as
nalionaI Iong dislance caIIs. WoiIdcaII is chaiging Rs. O.85 foi IocaI as veII as nalionaI Iong dislance
caIIs. SiniIaiIy, IocaI as veII as nalionaI Iong dislance noliIe caIIs aie Rs. 1.25 pei ninule.
Looking al lhe vasl depIoynenl
of WLL nelvoik, cuiienl giovlh
palleins and polenliaI in lhe
iuiaI aieas, lhis pace vouId
conlinue lul vilh a lil sIovei
giovlh in lhe coning yeais.
MainIy lhe giovlh viII le
deleinined ly lhe iesponse of
lhe iuiaI naikel lo WLL and
ceIIuIai nelvoiks. y lhe yeai
2OO9-1O, ve expecl lhal WLL
sulsciilei lase viII cioss 4.1
niIIion vilh WLL leIedensily of
alove 2.4 peicenl.
Local Loop Services
Tab!c - 22
WIrc!css Lnca! Lnnp TarIffs



V-PTCL
ExIstIng
Tc!ccard
GnCDMA
Wnr!d
Ca!!
Grcat Bcar
DIa!!ng
Line Renl 174 149 175 O
On-nel O.4O Iiee O.O1 1.99
Off -nel 2.O1pei 5nin 2.O1 pei 5 nin. O.85 1.99
LocaI M oliIe 2.5O 2.12 2.5O 1.99
NalionaI Long Dislance
On-nel
Off -nel

2.OO
2.OO

O.5O & Iiee
2.4O

O.O1
1.5O

1.99
1.99
NWD MoliIe 2.5O 2.5O 2.5O 1.99
I
e
i
c
e
n
l
a
g
e
4.1
3.4
2.6
1.8
1.O
O.3
O.7
1.1
1.6
2.1
2.4
O.2
O.O
O.5
1.O
1.5
2.O
2.5
3.O
3.5
4.O
4.5
2OO4-O5 2OO5-O6 2OO6-O7 2OO7-O8 2OO8-O9 2OO9-1O
M
i
I
I
i
o
n
O
O.5
1
1.5
2
2.5
3
WLL Sulsciileis
WLL Densily
FIgurc - 52
WLL Futurc Fnrccasts