USF Mission:
“Every Pakistani has
the right to modern
telecommunication
services and we
strive to provide
-Parvez Iftikhar
CEO USF Pak.
that”
www.usf.org.pk
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What is USF?
 Fund consists of contributions by Licensed Telecom Operators
 No Government Funding
 Used for Telecom Service Providers to provide services in
unserved/under-served areas
 Ministry of IT acts like a “Trustee” of the Fund
 Disbursed through open competitive bidding by USFCo., which
is set up under Companies Law
 USF Co. is a Public-Private-Partnership enterprise, run by an
independent Board
www.usf.org.pk
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Public-Private Partnership
USF Co. Board
PRIVATE
PUBLIC
Minister of IT
Representative of
ISPs
Federal Secretary IT
Rep. LL/LDI
Operators
Chairman PTA
Rep. of Mobile
Operators
Member Telecom
MoIT
CEO USF
www.usf.org.pk
Rep. of Consumer
Interests
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USF Co. Rules & Principles...
Open, transparent bidding
All docs on Website
Retail Tariffs subject to PTA
controls
One-time subsidies for Capex
No local monopolies:
Obligatory infrastr. share
Technology Neutral
Max 50% accumulation of
subsidy
Performance guarantees by
subsidy winners
Frequent Board Meetings
Lien on Equipment
Six-monthly Audits for USFCo.
www.usf.org.pk
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USF generated investments in 2 yrs
~ US$ 240 Mil
Total
Investment
95
Operator's
Investment
40%
USF Subsidy
145
60%
~$ 4 Mil
disbursed
Million US$.
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USF Programs
< - TELECENTERS - >
1st USF Program:
Rural Telecom
www.usf.org.pk
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26 “Lots” of Rural Telecom
www.usf.org.pk
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Status of Villages in Rural Program
Unserved Villages ( aprox. 12,000)
Remaining
Bids called
12%
22%
15%
51%
Work-in-Progress
www.usf.org.pk
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Renewable
Energy
ICT
Infrastructure
funded by
USF Pakistan
is powered by
Renewable
Energy
Sources
www.usf.org.pk
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2nd USF Program:
Optic Fiber Access for
all Tehsils
www.usf.org.pk
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Optic Fiber availability in Pak.
Unserved
areas
Served
areas
www.usf.org.pk
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3rd USF Program:
Broadband for
un-served urban areas
www.usf.org.pk
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Benefits of Broadband
Education
Bring Schools & Colleges on-line, help “Distance Learning Programs
Health
Telemedicine for Hospitals, BHUs, Health Centers etc.
Agriculture
Provide latest info. on crops, pesticides, fertilizers, market prices; Rural
Banking – especially Microfinance
Economy
Modern banking/funding; Improved on-line remittances, Improved
Agricultural, Branchless Banking, Industrial and Commercial outputs.
Others
Access On-line services/info of Govt., On-line Visa forms …
www.usf.org.pk
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Broadband Strategy of USF Pakistan
1. Start by targeting
Unserved Urban
Areas
2. Pay only when
given targets are
achieved (OBA)
3. More than one
subsidy winner
4. Special emphasis
on Education
Unserved
Rural
62%
Unserved
Urban
17%
~480 cities &
towns: no
Broadband
available
www.usf.org.pk
Rural areas:
No PCs,
& No
Computerliteracy
Covered
21%
15 to 18
large cities:
Broadband is
available
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Impact of Subsidy on Broadband
New
infrastructure by
BSP
Measures to “sell"
USF targetconnections
Decrease in costs
due to EoS
One-time
USF subsidy
Increase in No. of
Connections
www.usf.org.pk
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Broadband deployment in 11 Regions
Agreements signed
Another
3 Regions
advertised for
bidding
There will also be:
~2,000
Educational Broadband Centers
~700
3 Regions (KTR, LTR & ITR) are already “served”
Community Broadband Centers
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In near future,
4th USF Program:
Community Telecenters
www.usf.org.pk
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Broadband Strategy for RURAL areas
Target Rural
Areas through
Community
Telecenters
Un-served
Rural
62%
Un-served
Urban
17%
~480 cities &
towns: no
Broadband
available
Rural areas:
No PCs,
& No
Computerliteracy
Covered
21%
15 to 18
large cities:
Broadband is
available
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Telecenter Challenges...
Sustainability
Connectivity
Someone must be responsible with stake
in the venture– not government!
High speed media unavailable,
areas difficult to reach
Computer
Literacy
Basic knowledge to operate computers
lacking
Content
What will the villagers do with these?
Others
PCs, Electricity, Repair & Maintenance
www.usf.org.pk
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In General…
www.usf.org.pk
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Challenges and Setbacks
Setbacks:
a. Force Majeure in Malakand
b. No-bids in Chaghi, D I Khan and Kila-Saifullah/Loralai
c. Backing out by winning bidders in Kalat-Mastung and MTR
d. Other delays…
Specially challenging is Baluchistan –
44% of Pakistan’s Area, 70% of Coastline,
but 5% population - Average 19 people per sq. km.
Stated Reasons:
Security issues, Access problems (physical / electronic), No Power,
Increase in costs (Inflation, Rupee Exchange- rate), High Taxes,
coupled with High Opex, Low Revenues.
www.usf.org.pk
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Thank you
www.usf.org.pk
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www.usf.org.pk
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