FEASIBILITY STUDY FOR 3G DEPLOYMENTS IN PAKISTAN

Abstract

3G refers to the 3rd generation of mobile communication systems which satisfy the requirements laid out by International Telecommunication Union (ITU) for International Mobile Telecommunications-2000 (IMT-2000) standard. According to International Telecommunication Union, it is expected that IMT-2000(3G) will provide higher transmission rates of a minimum data rate of 2 Mbit/s for stationary or walking users and 384 Kbit/s in a moving vehicle and also offers end to end security. 3G in its different forms is currently deployed in different parts of the world. By the end of 2007 it was reported that around 190 3G networks were operational in 40 countries. The 3G standard revolutionized the mobile phone industry and produced products like iPhone which combined the functionalities of notebook with mobile phones to make internet connectivity more flexible than ever. Looking at the telecommunication sector in Pakistan, rapid growth has been seen in the recent years with the introduction of new operators providing telecom services and making communication reliable and cost effective for the local market keeping in view the global trends. Pakistan Telecommunication Company Limited started commercial launch of its 3G technology based on CDMA2000 EVDO under service name EVO in 2008. These services are provided in 105 cities of Pakistan. Currently there are 5 GSM operators in the market namely Mobilink, Ufone, Zong, Warid and Telenor providing 2G, 2.5G and 2.75G services like mobile telephony, SMS, MMS, GPRS, EDGE, GPS and other value added services. These 5 operators have brought lot of competition in the market and as a result the services cost has reduced considerably. However, as the demand for speedy data and communication increases every passing day there is a need to assess the 3G deployment for mobile operators. 3G services include Mobile TV, Multiplayer gaming, Video Calling, Telemedicine, Navigation services, E-banking and Media Streaming/Announcements. These services were previously not available to the mobile phone users. Even though PTCL has introduced 3G services in Pakistan, these services are limited to the desktops and laptops as limited by the implemented technology of 3G by the operator. There is a huge mobile subscriber base iv FEASIBILITY STUDY FOR 3G DEPLOYMENT IN PAKISTAN in Pakistan and 3G has a potential to rise in this particular market. For aforementioned reasons Government of Pakistan is also keen on investing in 3G to generate revenue and introduce new generation and trends in communication. Pakistan Telecom Authority (PTA) which is the governing body and responsible for issuing of licenses to the operators and policy regulations is in the process of starting the bidding. In these circumstances it is very crucial to monitor the telecom market and analyze the 3G deployment in Pakistan. The intent of this research is to study the technical and financial feasibility of 3G from the operator’s perspectives, the factors involved in migration/evolution from the pre 3G to 3G, revenue earning potential for the stakeholders, licensing issues involved for the telecommunication governing body and the service cost from user’s perspective taking into account the acceptance of this technology among consumers.