WLL: revolutionizing communication in Pakistan

TP resently the phone coverage in Pakistan is 30 % and with the completion of launch of Wireless local Loop (WLL) telephony, it would be increased up to 100 percent. The Federal Minister for IT&T is quoted as saying, on the launching ceremony of WLL at Sukhur, that 50000 urban and rural areas have been included in the national network, with the launching of WLL so far 20000 villages had been provided with WLL and that within a very short span of time, the facility would be provided in 50000 urban and rural areas.

De-regulation of telecom sector is being seen as beginning of revolutionization of the telecom Industry in Pakistan. The architects of this concept consider this step as bold & fruit bearing. They perceived, happening of miracles at the end of the day. In line with the international concepts and emerging trends, Pakistan opted for the opening-up of her economy for international investors. Pakistan committed at the WTO forum in 1997 to open up its basic telecom services to private sector in 2002. In pursuance of this strategy, deregulation process of telecom sector was started in early 2003, and its first phase stands successfully completed and all telecom services are liberalized with entry barriers & restrictions abolished.
Keeping in view the importance of WLL technology in developing economies and the growth of WLL subscribers all across the world, the government also decided to promote this technology and thus WLL licenses were offered. As spectrum is a scarce source, the efforts were made level best to accommodate maximum number of players in the available resource.

S.No Name of Applicant Regions
1 PAKISTAN TELECOMMUNICATION COMPANY Ltd 14
2. TELECARD Ltd 14
3. DV COM Ltd 14
4 WORLDCALL
TELEPHONY (Pvt) Ltd 14
5 BURRAQ TELECOM Ltd 14
6 WARID WLL (Pvt) Ltd 13
7 MICROTECH LINKS
(Pvt) Ltd 05
8 GREAT BEAR INTERNATIONAL SERVICES
(Pvt) Ltd 05
9 CYBER INTERNET
SERVICES (Pvt) Ltd 03
10 ZARCO TELECOMMUNCATION (Pvt) Ltd 02
11 SACHAL SOTEC
(Pvt) Ltd 01
12 SACHAL SATELLITE COMMUNICATION
(Pvt) Ltd 01
13 SACHAL TECHNOLOGIES INC (Pvt) Ltd 01
14 SACHAL TECHNICAL SERVIES (Pvt) Ltd 01
15. POLEAX TELECOM
(Pvt) Ltd 01
16 UNITED CABLE
NETWORK (Pvt) Ltd 01
17 RELIANCE
TELECOM (Pvt) Ltd 01
18 ERTIBATAT (Pvt) Ltd 01
19 METROTEL (Pvt) Ltd 01
20 DEFENCE HOUSING AUTHORITY 01

Twenty companies have won the spectrum for 14 telecom regions. In all, 108 WLL licenses will be awarded to the successful bidders upon deposit of spectrum winning prices. An amount of Rs 14055 Million is expected from the spectrum auction.

FINANCIAL DETAILS OF WLL
S. # REGIONS 1.9 GHz in Millions Rs. 450 MHz in Millions Rs. 479 MHz in Millions Rs. 3.5 MHz in Millions Rs. Total in Millions Rs.
1 Karachi
(KTR) 3612.00 264.00 31.00 259.00 4166.00 2 Faisalabad
(FTR) 1275.00 201.00 3.00 28.00 1507.00 3 Lahore
(LTR) 1059.00 168.00 5.00 77.00 1309.00 4 Gujranwala
(GTR) 885.00 240.00 25.00 4.06 1154.06 5 Multan
(MTR) 858.00 210.00 20.00 3.48 1091.48 6 Islamabad
(ITR) 870.00 66.00 7.00 49.00 992.00 7 Northern
(NTR-I) 606.00 183.00 20.00 28.00 837.00 8 Rawalpindi
(RTR) 597.00 192.00 17.00 4.06 810.06 9 Southern
(STR-I) 402.00 117.00 8.00 4.06 431.06 10 Central
(CTR) 363.00 108.00 1.31 2.32 474.63
11 Western
(WTR) 225.00 111.00 10.00 3.48 349.48 12 Southern
(STR-V) 237.00 96.00 11.00 4.06 348.06 13 Northern
(NTR-II) 166.00 75.00 7.00 3.48 251.48 14 Haripur
(HTR) 101.00 120.00 10.00 3.48 234.48 Total 11256.00 2151.00 175.31 473.48 14055.79

The launching of WLL in Pakistan telecom sector is almost like bringing a revolution in the industry and new technology is likely to break the monopoly of cell phones in the country. The Wireless Loop Service is a new telephone technology, which enables provision of service without telephone lines over a 25 kilometers radius from the telephone exchange. The WLL is an emerging access network technology based on Code Division Multiple Access (CDMA) principle. Cellular mobiles are based on Group Special Mobile (GSM) technology.

It may be taken as the clash of titans. But the WLL will have sway over the mobiles, as found in our neighboring India during the recent past. The mobile companies will have to come out with more attractive packages to stay in contention, as their survival will be at stake once the WLL penetrates.

As some companies have already announced the launching of the WLL services in the villages by the end of this year. The launching of the WLL service would bring a new revolution in the telecom sector and would also fetch huge investment.
The biggest advantage of WLL is that there are no airtime charges. All incoming calls are free of charge. All outgoing calls will be charged at lowest, which is the same as a landline call. The Code Division Multiple Access (CDMA), which supports WLL, is a cellular technology and as the licensees are prepared to provide the subscribers loop connectivity through WLL- CDMA system they would offer a limited mobility to the subscribers which means, the subscribers will enjoy mobility in their respective geographic areas.

The highest bidder state owned telecom; Pakistan Telecommunication Company Limited (PTCL) will provide 2.1 million new Wireless Local Loop telephone connections in far-flung and rural areas of the country. The technology of this wireless system is the same as being used in cell phones worldwide. The only difference is that its range has been restricted to 20 kilometers from the telephone exchange of its origin.

The PTCL has finalized the plans rather started to provide WLL connections to the residents of Khudian Khas, Kot Radha Kishan and Pattoki of district Kasur, Basirpur, Depalpur, Haveli Lakha, Rajowal, Okara, Rennala Khurd of District Okara, Arifwala, Pakpattan, Chichawatni, Sahiwal, Burgwala, Noor Shah of district Shahiwal, Syedwala, Sheikhpura, Shariqpur, Narang Mandi, More Khunda, Nankana Sahib, Sangla Hill Manawala, Farooq Abad and Mandi Ahmad Pur of district Sheikhupura in the first phase.

The completion of the provisioning of WLL facility would take the phone coverage, presently 30 in Pakistan to the level of 100 percent. Availability of land line telephony, WLL, LDI and LL services to a large chunk of rural & urban population in Pakistan would not only ignite the economic activity but also boost the ongoing productive activities in industrial and agriculture sector. Marketing of agriculture-produce by the farmers themselves would become a reality. Role of middleman would be reduced and farmers would be in a position to get the fair price of their produce. Availability of the modern communication at affordable rates would enhance the knowledge of the farmers about market mechanism and prevailing situation. Middleman and market manipulators would not remain in a position to exploit the ignorance of the farmers. Until Dec,31.2003, all-voice traffic was a monopoly in Pakistan dominated by Pakistan Telecom Company (PTCL). Deregulation has not only provided for entry of new players into the market, but is driving entrance of new technologies, higher service levels and lower prices for consumers throughout they country.

The low cost of WLL has created an immense anxiety among the mobile cellular operators that it would adversely affect their consumer base in cellular services.
Mobile cellular business players are worried about the WLL services in Pakistan and they have made a demand to the government to reduce taxes on mobile cellular companies and also to allow them to slash their tariffs further to facilitate the consumers.

Seventy-two companies have applied for local loop licenses in 14 Telecom regions. Thirty-nine companies opted for fixed local loop license and thirty-three companies desired WLL spectrum. Out of these thirty-three, twenty-nine companies were cleared for participation in spectrum bidding. Twenty companies have won the spectrum and in all 108 WLL licenses in fourteen regions will be awarded to the successful bidders upon completion of formalities and deposit of auction winning prices. Total revenue generated from the spectrum bidding is expected to be Rs. 13816.785 millions. This money would also become a source of development for down trodden people in Pakistan.