Telecoms, internet in Pakistan

Pakistan beats India in telecoms regulation

M Rajendran

New Delhi, December 20, 2006

It is not only in cricket and hockey where India gets beaten by Pakistan, it seems.

In a study comparing telecommunications industry regulators of the two countries, Pakistan has beaten India in five of the six parameters surveyed, with India winning on the only on criterion — low price.

A survey by research agency LIRNEAsia says Pakistan overtook both India and Sri Lanka in basic telecom measures in fixed and mobile services, such as transparency of licensing; information provided to applicants about the terms, conditions, criteria and length of time needed to reach a decision on their applications; licence conditions; mergers and acquisitions; and niche licences.

The ‘Telecom Regulatory Environment, 2006′ survey conducted by Indonesia-based LIRNEAsia suggests that the Telecom Regulatory Authority of India (TRAI) needs to improve its regulation in interconnection and anti-competitive practices.

The survey for the fixed and mobile telecommunications sector was conducted for 13 months from June, 2005.

In overall measurement Pakistan scored 2.9 on a scale of 5 for fixed line services compared with India’s 2.7. In mobile services it scored 3.1 against India’s 2.9 points.

India’s prominent neighbour in South Asia is also ahead in offering timely, transparent and non-discriminatory access to spectrum allocation, numbering and rights of way, frequency allocation, telephone allocation and site rights.

Speaking to Hindustan Times, Professor Rohan Samarajiva, executive director LIRNEAsia said, “The results of our first survey on telecom regulatory environment (TRE) show that TRAI and Department of Telecommunications are doing well on the various parameters but need to improve on spectrum, interconnection and anti-competitive prices.”

The first TRE survey which is likely to be now conducted annually revealed that on the interconnection parameters such as ensuring major operators provide the link at any technically feasible point in their networks, TRAI has taken efforts at the recommendation level but not at the implementation, points out Payal Malik, senior researcher with LIRNEAsia.

TRAI chairman Nripendra Misra told Hindustan Times that he had no comment to offer as he had not seen the study.

Commenting on the findings, Mahesh Uppal, a telecom analyst said, “We still have to go some way on our regulatory parameters. Our greatest advantage is that we have much higher levels of raw competition on most of our markets, compared to our neighbour.”

On parameters such as ensuring that the quality of interconnection offered by an operator is similar to its own, reasonable charges for interconnection rates, sharing of revenue on incoming and outgoing calls, payment for cost of interconnection links and technical disruption, Pakistan has scored more over India.

India also scores less than Pakistan even in administration of the universal service program/fund to aid remote areas not covered by commercial expansion in a transparent, non-discriminatory and competitively neutral manner.

PSEB, Malaysian firm to build IT parks

By Imran Ayub

KARACHI: Pakistan Software Export Board has signed an accord with a Malaysian firm to build IT parks in†Islamabad, Karachi and Lahore in a move believed to attract foreign interest in the emerging industry of the country. Official sources said the deal was part of Prime Minister Shaukat Aziz’s directives to the Ministry of IT and Telecom, calling for urgent steps to start the construction of IT parks in major cities.

“We have signed an MoU (memorandum of understanding) with MDeC (Multimedia Super Corridor Development Corporation), a government of Malaysia entity, which promotes the IT†industry,” said Yusuf Hussain, Managing Director PSEB, who returned from Malaysia last week.

“We intend to build IT parks on plots of land ranging from six to 13 acres in†Islamabad, Karachi and Lahore.”

He said the Malaysian visit was aimed at meeting with developers, who were interested in building IT parks in Pakistan on build, operate and transfer (BOT) basis, besides facilitating cooperation in other areas†including venture capital funds and trade in IT services.

“There is immense scope†for collaboration with Malaysia on IT. We also visited Cyberjaya, a leading IT city of the†world, to learn from their experiences,” added the PSEB chief.

Prime Minister Shaukat Aziz in August this year asked for steps to start the construction of long-awaited IT parks in Islamabad, Lahore and Karachi, indicating the IT-enabled office space was a critical requirement for the development of the industry.

The August meeting resulted in recent visit of the information technology ministry high-ups to Malaysia, one of the fastest growing IT industries across the world. The authorities believe planned cooperation may prove fruitful for both countries.

“To jointly explore, wherever feasible, cooperative projects that can be accomplished through employing ICT (information and communication technology) between MDeC and PSEB, or between third parties identified by MDeC and PSEB, in the areas of ICT industries and multimedia or other areas as may be agreed upon by the parties, including but not limited to:

(i) the development of IT parks (ii) ICT in the logistics sector or e-logistics; and (iii) market entry facilitation for companies from both countries.” The accord between the two organisations also allowed exchange of information and sharing of ideas, wherever relevant, about strategies and best practices in nurturing the local IT industry and multimedia companies.

The country’s software exports have been on the rise for the last couple of years, crossing $70 million during 2005-06 for the first time, registering a growth of 50 per cent, as western firms started turning more and more towards Pakistan for IT-enabled services to cut costs and raise profits.

The IT industry emerged as the fastest growing sector in the last fiscal, mainly supported by phenomenal jump in call centre operations during the last two years.

More than 140 centres are currently operational, mainly in Lahore, Karachi and Islamabad offering employment to around 5,000 people. Plans to build IT parks in major cities, IT players say, may further accelerate the industry’s growth. “For this year (2006-07), we have set $108 million software export target,” said Hussain, MD PSEB. “The target is inspired by the State Bank data, which showed our companies managed to export over $72 million worth of software during 2005-06 and with the same rate we should achieve the new target by the end of June 2007.”

The interesting point to note is that Cogilent IP addresses are 203.99.57.232/29. The IP No. 203.99.57.224/29 mentioned in the FIR below is in use by some other customer. Hope that other customer has cleaned up their premises

Faisal Chohan is still in Adiala Jail, bail having been refused by the Additional District & Session Judge, Malik Abudl Qayum, while hearing the bail application of Faisal, and instead advised to take the bail application to High Court.

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FIR:-

FIA Crimes Circle, RWP
FIR No. 24/2006
Date: 5.12.06
Complainant: Mr.Sajjad Awan, Director PTA
Against:            M/s Cogilent, STP-II, F-5, Islamabad
 
 
Today 5th December, 2006 written complaint from Mr. Sajjad Latif Awan, Zonal Director (Enforcement) PTA Rawalpindi was received addressed to Additional Director FIA Crime Circle as under-Pakistan Telecommunication Authority (PTA) has received a report from Manager Network Security & Surveillance\ (NSS) of Pakistan Telecommunication Company Limited (PTCL) Islamabad dated 30th November, 2006 that some illegal VOIP has been detected against IPs 203.99.57.224/29. The Manager NSS requested PTA to provide assistance in obtaining the final destination of the IPs reported (Copy attached as Annex-X). the same was provided accordingly (Attached Annex-Y). In response of the information above PTA has received a complain from Manager Network Security & Surveillance (NSS) of Pakistan Telecommunication Limited (PTCL) that M/S Cogilent is involved transaction of International Voice traffic by establishing and authorized computer based PABX/Gateway exchange at 205D, 2nd Floor, Evacuee Trust Complex, Agha Khan Road, F-5/1, Islamabad. The complainant has further submitted relevant analytical record of IP’s though which the voice is being used internationally. By looking into the record submitted the Manager NNS and the info collected from Web Site of Company (www.cogilent.com) and having been satisfied that the illegal business for wrongful gains and loss to Govt. exchequer has occurred, undersigned believes, that is a prima-facie case of violation of, in addition to others. Section 31 of Pakistan Telecommunication (R-Organization) Act 1996, Section 36/37 of ETO 2002 and Section 25 C of Telegraph Act, 1885. It is therefore requested the necessary investigation be carried out in the greater interest of service and save Govt. from further loss of revenue. The cop of complaint received from PTCL alongwith submitted record mentioned above is attached for ready reference. The team of PTA and PTCL will be available for any assistance required by FIA round the clock. 
 
 
As per Sensitivity of the case and a risk for leakage of information which could alert the accused and early action will be highly appreciated S/d—Sajjad Latif Awan, Zonal Director (Enforcement), Rawalpindi. ACTION BY FIA: From the contents of complaint reproduced above. Prima-facie offences under section 31 TRA, 1996, 36/36, E.T.O 2002, 25C Telegraph Act, 1885, 34/420 PPC appear to have been committed. Accordingly a case is registered under the order of the Competent Authority. Copies of FIR being sent to quarter concerned. After completing necessary formalities raid will be conducted in collaboration with PTA/PTCL officers for recovery of device/apparatus illegally installed/reportedly functioning.
 
 

Here is a Press Release from the PTA. I will attempt to analyse it below. Read on!

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http://www.thenews.com.pk/print1.asp?id=35307

PTA conducts raids on solid evidence

KARACHI: Pakistan Telecommunication Authority (PTA) said on Tuesday it has always encouraged both local and foreign investors to invest in the telecom related business and facilitated them in every possible manner.

“Besides, it is evident from the facts and figures of telecom sector that PTA has always encouraged both local and foreign investors to invest in the telecom related business and facilitated them in every possible manner,” said a PTA statement on Tuesday.

It said the PTA always conducted raids against illegal operations on solid evidence and through monitoring of the suspected facility as per law.

“The voice over Internet protocol (VoIP) is a licensed service and not an illegal activity but to run such a facility, a company has to acquire a license from PTA,” it added.

Referring to the latest raid against Cogilent Solutions -an IT firm in Islamabad - the PTA said it was running VoIP without a valid license from PTA.

“The bandwidth provided to the company was for data purposes only as written in the agreement which a DSL customer signs upon taking a connection. In contrast, it was being used for VoIP,” added the statement.

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First of all lets be clear that using VoIP is not illegal, does not need a licence. It is a technology not a service. The legality of using this technology is clear from PTA determination Dir(LE)/45-1/VOIP/Coord/PTA dated 16 November 2002 that clearly and specifically allows use of VoIP.

No where in the Pakistan Telecommunication (Re-Organization) Ordinance 1996 is the term VoIP used or mentioned.

What is illegal, without a licence, is providing a “BASIC TELEPHONE SERVICE”. This usually means termination, which requires setting up of an exchange to route calls to licenced service provider numbers. Cogilent has 4 PTCL lines, no equipment for terminating to GSM or CDMA networks. So no termination in the traditional meaning of the word.

It appears that what Cogilent was doing was using their data link to make VoIP calls between its Islamabad and USA offices. The PTA sometimes thinks that this is illegal.

In any case if a customer signs an agreement with its DSL provider not to use VoIP over that DSL connection then at most this would be grounds for a civil case between the ISP and the customer. For the FIA goons to be involved on the basis of this is ridiculous and illegal.

Finally, evidence of intelligent life in Pakistan Govt.
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By Imran Ayub (undated)

KARACHI: Tremors were running across the telecom industry owing to a tug of war among different institutions as Pakistan Software Export Board (PSEB) has registered a protest with the federal IT ministry on Pakistan Telecommunication Authority’s (PTA) raid against a call centre running job portal on suspicious illegal operations.

Sources in the industry said the PSEB high-ups appeared annoyed after last week’s incident when plain-clothed officials of the FIA (Federal Investigation Agency) and PTA raided a call centre office in Software Technology Park Islamabad and arrested the professional there seizing telecom equipment on doubts that the set-up was being used for illegal voice termination.

“In fact, the company is one of the first companies in the world to launch an integrated voice resume system based on VoIP (voice over Internet protocol) technologies,” said a senior official who asked not to be named. “And their solution is being used by companies like TRG and others to hire quality talent for their call centres in Pakistan.”

He said the joint FIA-PTA team seized the servers, mobiles and other equipments on the pretext that the company was using it for illegal VoIP termination. The authorities also locked up the company’s CEO.

Telecom sources believe the PSEB’s prompt reaction was noticed in quarters concerned.

The emerging call centres consider it a long-term damage as the raided company was serving mainly the foreign clients.

The call centre operators claim that offices of the raided Cogilent Solutions runs a very successful job portal in the country called BrightSpyre. Among their innovations, the call centre is one of the first companies in the world to launch an integrated Voice Resume system based on VoIP technologies. The situation also rings alarm in industry quarters.

“This step has damaged all efforts we as call centre operators have been doing to promote the Pakistan call centre industry, also all our efforts to attract non-resident Pakistanis to come and work for Pakistani call centre industry,” said a letter to the federal minister from Call Centres Operators Association of Pakistan.

The industry, which is set to meet with the minister on the issue, pinpoints recently privatised Pakistan Telecommunication Company Limited (PTCL). “For the FIA or PTA this might be a routine work, as of today PTA and PTCL have not been able to produce a single piece of equipment or data to proof this company guilty, while there are dozens of proof that PTCL is its self doing termination of grey traffic on behest of their Arab owners,” said the ACCO letter.

Pakistan software industry started testing windfall two years ago on phenomenal jump in the call centres’ operations mainly in Karachi, Lahore and Islamabad. More than 140 centres are currently operational in three major cities of the country offering employment to around 5,000 people.

The country’s software exports crossed $70 million during 2005-06 first time ever registering a 50 per cent growth, as western firms started turning more and more to Pakistan for IT-enabled services to cut costs and raise profits.

The authorities, who have set $108 million software export target for 2006-07, however see activities like the previous damaging for the industry and foreign interest in Pakistani industry. “We have to define the policy line, which saves interests of both local and foreign investment,” said the PSEB official. He suggested the PTA and PTCL to approach the board if they notice illegal activity by any call centre or software house.