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M. Tariq Badsha Member (IT) Ministry of Information Technology Government of Pakistan Dec 19, 2009.

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Presentation on theme: "M. Tariq Badsha Member (IT) Ministry of Information Technology Government of Pakistan Dec 19, 2009."— Presentation transcript:

1 M. Tariq Badsha Member (IT) Ministry of Information Technology Government of Pakistan Dec 19, 2009

2 Outline Background Start-up Phase Consolidation Phase Sustainability and Scalability Challenges and the Future

3 Background IT Division Formed in 2000 - consolidating IT & Telecom functions under M/o Science & Technology IT Policy Approved by the Cabinet in August 2000 Mandate of the IT Division: IT Sector Development and use of IT for better government services Telecom Sector Development IT Ministry formed in 2002

4 Start-up Phase (Inception to 2002) Recruitment of IT and Telecom Professionals Setting up Organizations: Electronic Government Directorate (2002) Higher Education Commission (2002) Strengthening of Pakistan Software Export Board Virtual University Creating an Enabling Environment Pilot projects of a wide variety Major thrust on HR and Infrastructure Development

5 Start-up Phase (PSDP allocations)

6 Achievements and Lessons Achievements: Breaking the inertia Building the team Creating Basic Organizations Developing the Telecom Infrastructure Testing the waters in various sectors Long lead activities (HR) put in motion Key policies and Legislation Lessons: Bring Focus Strengthen Implementation

7 Consolidation Phase (2003-2007) With the formation of HEC a significant part of the HR program was shifted to HEC Program was focused on: Citizen Services IT for improving efficiency as a means to support Services IT industry Development - increasing exports and/or creating local employment Infrastructure to meet specific needs Targeted HR Development Telecom Sector Deregulation and Privatization Legislation and Enabling Environment

8 IT Industry Development Advisory and Information services Infrastructure Support (STPs) Exhibitions and Events Industrial Automation Quality Certifications Corporate Training Programs IT Industry Internship Programs Open Source Resource Center (www.osrc.org.pk)www.osrc.org.pk Facilitate resolution of Industry’s Operational Issues Activities/Major Functions

9 E-Government Strategy Basic Infrastructure Hardware, LAN at Ministries, Centralized Data Centre Common Applications E-Office comprises of Common processes (IC, HR, PM, Budget, Inventory) Agency Specific Applications Example: Hajj Applications. Online registration of companies with SECP, Online recruitment at FPSC, Online Access to case laws, Court Automation, etc E-Services Domicile, Driving Licenses, International Driving Permits, Arms License Issuance, Food, Agriculture & Livestock Information Repository (FALIR), Land Record Revenue MIS etc Replication and Reuse Replication of E-Office applications to 45 Divisions

10 HR Development National ICT Scholarship Program (R&D Company) Opportunities for students from remote areas to study in ten top universities of the country Internships (PSEB) Match making between fresh IT graduates and IT companies by placing IT graduates in IT companies IT Apprenticeship Program (R&D Company) Rs. 15,000 per student per month to groom young professionals Corporate Training Program (PSEB) A program that brings in trainers from abroad to train and subsequently certify individuals nominated by their companies Capacity Building Programs (PSEB) “Specialized Training” for local IT companies in and “General Training” in the field of project management, network/security systems and business process modeling Federal Govt. Employees Training Program (Computer Bureau) Training in basic IT to Federal Govt employees working in various Ministries/Divisions Virtual University with enrollment of over 50,000

11 Telecom Sector Governing Legislation Pakistan Telecommunication (Re-Organization) Act 1996 (Amended 2006) Sector Policies De-Regulation Policy for the Telecommunication Sector – 2003 Mobile Cellular Policy – 2004 Broadband Policy – 2004 Universal Service Fund Policy – 2006 Formation of Companies to manage USF and R&D Funds

12 National ICT R&D Fund Company Independent Company. Activities funded by mandatory contribution from Telecom Operators Goals: Cultivate industry-academia partnership Enhance the national ICT related human resource development capacity Make Pakistan an attractive destination for high tech jobs Use ICT as a tool for wealth creation Spread the ICT activities at the National level.

13 National ICT R&D Fund Company Major Programs National ICT Scholarship Program IT Apprenticeship Program Technical R&D Projects International Publications

14 CategoryProposals Amount (Rs. Mil) 1VLSI Design6 104 24G Wireless Development2 30 3e-Health and e-Education5 71 5Social Networks2 21 6Mobile Device Software Systems7 86 7 Network Security/Multimedia and P2P Systems9 108 8Open Source Development7 135 9University Excellence Program1 16 10Human Resource Development7 121 11Conferences4 2 National ICT R&D Fund - Projects

15 Universal Service Fund Company Independent Company Contributions by Licensed Telecom Service Providers No Government Funding Spent by Telecom Service Providers to provide services in un-served and under-served areas Ministry acts like a “Trustee” of the Fund Disbursed through open competitive bidding by USF Company (bidder requiring least subsidy wins)

16 Universal Service Fund Currently has three programs: Rural Telecom and e-Services Fiber backbone Broadband

17 Universal Service Fund 26 “Lots” of Rural Telecom

18 Optic Fiber availability in Pak. NoProvince Tehsils without Fiber In Percent 1 Punjab0504 % 2 Sindh1819 % 3 N.W.F.P1631 % 4 Baluchistan42 64 % 5 FATA3276 % Total12531 % Served areas Unserved areas Universal Service Fund

19 Previous efforts to improve failed Affordability a major issue Growth picking up but confined to large cities! Universal Service Fund Broadband status in Pakistan

20 Score Card – IT industry Development Exports- SBP – From US $ 23 million in 2002-03 to US $ 184 million in 2008-09 IT Parks – 700,000 sq feet. Land earmarked at Karachi, Islamabad, and Lahore for purpose-built technology parks ISO 9001:2000 certification to 100+ IT companies 24 companies certified in CCM/CMMI levels 2 to 5

21 Score Card – e-Government Basic IT infrastructure at all Ministries Electronic File Movement and MIS (Common Applications) implemented at the Ministry of IT Over 30 agency specific applications developed for Health sector, Municipal services Recruitment, Law enforcement, District Courts, and federal government Ministries Federal Government Data Center being established Maintains Government of Pakistan Web Portal

22 Score Card - HRD 600 apprentices through IT Apprenticeship program Over 1,500 rural/non-metropolitan area students currently studying, through National ICT Scholarship Program Training of 5,000 Government Servants in IT Distance learning education to over 50,000 students through VU Internships- 4460 graduates from 220 universities/institutes placed in 250 IT companies

23 Score Card - Telecom ParametersCurrent Stats Fixed lines (teledensity)3.526 Million (2.2) Mobile lines (teledensity)95.918 Million (58.6) WLL lines (teledensity)2.716 Million (1.6) Total lines102.16 Million Combined teledensity62.4% FDI (2008 – 09)US$ 815 Million Total Direct & Induced Jobs in Telecom Sector 1.36 Million Telecom sector Revenue (2007 – 08)Rs. 278.459 Billion year ending 2008 statistics

24 Telecom Score Card (Cont..) ParametersCurrent Stats Total Internet Connections3.7 Million Total Internet Users17 Million Total Broadband Subscribers350,000 Cellular Mobile Operators (No.)06 Long Distance International (LDI) (No.)12 Local Loop (Region wise) Operators (LL) (No.) 72 No. of under sea cables – International bandwidth 3 Domestic Fiber Backbone Networks4 Year ending 2008 statistics

25 Telecom Score Card (Cont..) S. No.TechnologyDec 08Mar 09Jun 09Jul 09Aug 09Sep 09 1DSL 171,170 176,616 262,661 265,275 272,862 298,887 2HFC 40,330 36,201 37,334 36,759 36,004 3WiMax 39,310 88,477 101,956 119,718 133,538 4FTTH 2,370 3,967 4,353 4,495 4,092 5EvDO 14,000 22,503 25,191 26,662 27,474 6Others 22803797 Total267,180272,626413,809 434,131461,299 500,792 Broadband Subscribers by Technology

26 Sustainability and Scaling Up 2008 onwards Update of policies USF and ICT R&D Fund Companies gaining full momentum Impact analysis of completed IT Projects Scaling up successful pilots: e-office at M/o IT replicated to all Federal Ministries Federal Government Data Center Adjusting policies and regulatory environment in light of changed telecom environment to maintain sector growth.

27 Challenges – e-Government Acceptance of IT enabled processes by government functionaries (cliché: Culture Change) Ownership of IT projects and resources for sustainability: HR for operations Recurring expenditure Electric power and other infrastructure Security of Networks Hiring and retention of IT Professionals in government

28 Challenges – IT Industry High Quality HR to feed the industry – technical as well as middle management Affordable IT-enabled space Country Perception Increased global competition Attrition of HR to lucrative markets Venture Capital and Financing Exploiting niche markets

29 Challenges – Telecom Sector Sector health in light of higher saturation levels lower ARPU due to price wars Shrinking margins Introducing value-added services Optimal Frequency management Management versus speed of processing Flexibility in terms and conditions of licenses distribution (Defence, Public Sector, and Commercial)

30 Challenges – Telecom Sector Maintaining Investors’ Interest Legislation and Policies to deal with possible mergers and acquisitions – to maintain a fair competitive regime Using ICT infrastructure for Socio-economic development Increasing Broadband penetration – Supply side as well as demand (consumer appetite) Convergence of media, telecom, and VAS

31 Challenges – ICT for Development Cost of Access devices Broadband service charges have come down significantly but still above the price point for mass acceptance Content for Broadband services Mindset of service providers Literacy and Capacity for absorbing technology Basic services (electrification, roads, drinking water, etc.)

32 Future Telecom Policies are being revised in consultation with all the stakeholders to address the challenges of the current market dynamics. Similarly, the IT Policy of 2000, is being updated. Targets would have to be set for government ministries New legislation in the areas of Data Protection, Privacy, Consumer Protection, IPR IT must be introduced in our SME sector more aggressively if they are to remain competitive IT companies would have to scale up – partly through organic growth but mostly through mergers

33 Future Work on affordable solutions Using FOSS technologies where applicable Lightweight software for extending the life of hardware Localization Public access points – like telecenters Generate viable business models for small entrepreneurs around ICT

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