International Satellite Symposium 2014 18-19 September, 2014 Bangkok, Thailand Satellite Communication Services Regulatory Framework from Pakistan Perspective Syed Ismail Shah, PhD Chairman Pakistan Telecommunication Authority E‐mail: ismail@pta.gov.pk Sequence • Pakistan‐Brief Overview • Satellite Policy & Regulation – Administration – Licensing Framework – Spectrum Management • Satellite Services & Regulations – Industry Structure – Market & Players – Service Regulations Pakistan : An Overview Pakistan • Pakistan has the 6th largest population in the world, making it an attractive market for global investors • The country is expected to have more than 230 mn inhabitants by 2030 with ~2% per anum growth • Its population is young and becoming more educated Population, 190 Mn (6th Largest pop) Land Area 796,095 km2 • 36th Largest Area Key Stats ▪ Income /Capita US $1300 ▪ Literacy Rate 53% ▪ Media Age 21.2 ▪ Geo-strategic Location SOURCE: Team analysis • Urbanization trend is expected to continue, reaching a level of 43% by 2030 • It is expected that by 2050, Pakistan will be the 31st largest economy in world with nominal GDP of 675 bn USD from its current state of ~240 bln USD (43rd largest economy as of 2013) Market Growth (TV & Mobiles) HH: House Hold ICT Administration Ministry of Information Technology (MoIT) • Issuance of Policy Directive from time to time • For more details please visit www.moit.gov.pk Pakistan Telecommunication Authority (PTA) • • • • Licensing of any Telecommunication Service and System Regulation of Telecom Sector Spectrum Auction For more details please visit www.pta.gov.pk Frequency Allocation Board (FAB) • • • • • Chairman PTA member of FAB Allocate & Assign Portion of Radio Frequency Spectrum Frequency Coordination Satellite Filling For more details please visit www.fab.gov.pk Broadcast Administration Ministry of Information & Media Development (MoIMD) Pakistan Electronic Media Regulatory Authority (PEMRA) Frequency Allocation Board (FAB) • Issuance of Policy Directive from time to time • For more details please visit http://infopak.gov.pk/ • Chairman PTA on the Board of PEMRA • Licensing of Television & Radio Broadcasting Service and System • Regulation of Broadcast Sector • For more details please visit www.pemra.gov.pk • • • • Chairman PTA on the Board of FAB Clearance to Allocate & Assign Portion of RF Spectrum Frequency Coordination & Technical Approvals For more details please visit www.fab.gov.pk Satellite Filling Administration of Pakistan has the following valid satellite fillings in the database of ITU: GSO PAKSAT‐1/ PAKSAT‐1R/ PAKSAT‐1R1 @ 38°E PAKSAT‐2R1 @ 41°E NGSO PRSS‐01 In addition to above, Administration of Pakistan also has the following planned band allocations under Appendix 30/30A/30B of the Radio Regulations: For Broadcast Satellite Services (BSS) and Associated Feeder Link under Appendix 30/30A @ 38.2°E For Fixed Satellite Services (FSS) under Appendix 30B @ 56.5°E PRSS: Pakistan Remote Sensing Satellite Spectrum Management Core tasks of Spectrum Management are performed by FAB in consultation with PTA The Enforcement related tasks are also carried out by PTA. PTA also makes Regulations in consultation with all stakeholders. MoITT is mandated to issue Policy Directive on Radio Frequency Spectrum. On the basis of RF assignment PTA issues authorization / licenses. Industry Structure (Broadcasting‐ Content Regulation) Ministry of Info. & Media Development Policy & Regulation Pakistan Television Corp. State TV PTV Foundation PTV Welfare/Contracts Pakistan Broadcasting Corp. Govt. (SW, MW, FM, Satellite) PEMRA (www.pemra.gov.pk) Electronic Media Regulations Satellite Uplinking Private Broadcasters Cable/Landing Rights/MTV etc Private Broadcasters FM/Satellite Radio Private Broadcasters Regulating Electronic Media In Pakistan‐ Content Regulations • PEMRA Rules – PEMRA Ordinance 2002 – PEMRA Act Amendment 2007 – PEMRA Rules 2009 • Code of Conduct – Programme & Advertising • Council of Complaints – 7 CoC with 5 members from society • PEMRA Monitoring – Technical Setup at Islamabad Pakistan TV Market Players 86 Channels & Increasing Broadcast Licensing and Media Penetration 115 85 26 Satellite TV Landing Rights 2.5 3 Cable TV (000) MMDS 3 FM Radio Mobile TV Pakistan Media Licenses (Source: PEMRA 2011) 1 IPTV The Broadcasting Environment • Media financing heavily tilted towards the television industry • TV ad industry PKR 20 billion (USD 200 M approx) • Majority of advertising revenue is coming from Mobile operators • Unilever is the largest consumer in term of airtime usage Regulatory and Industry Structure (IT & Telecom‐Technology Regulations ) Road to Deregulation Competition 2014 Onwards 3G/4G Auction 2005 Onwards 2004 Onwards 2002 Onwards PTCL Launch of Privatisation New Mobile/WLL/ Deregulation LDI of state Companies monopoly 2000 Pakistan IT Policy 1999 1994 PTCL gets GSM License PTCL WLL 1993 1994 1992 01st GSM License Paging Licenses DNOP/VAS Licenses, 1994 Onward s Telecom Sector Reorganisation 1991 1990 Card Payphone Licenses Paging License 1989 1962 Two AMPS Cellular Licenses Pakistan T&T 1947 Post and Telegraph Dept Telecom Overview : Highlights of Telecom Industry in Pakistan Key Telecom Indicators Cellular Subscribers (as of June 2014): 140 million (SIM connections based on 90 days active) Cellular Teledensity (as of June 2014): 75% Annual Cellular Revenues (FY2012-13): Rs. 311 billion Total Male population (15+): 60.8 million Total Female population (15+): 57.5 million A subscriber holds 2.6 SIMs on average for family members Market is mainly prepaid oriented (~98%) Smartphone penetration is about 15% Data / VAS potential is almost entirely unexploited with ~10% share in total revenues Fixed telco market is limited and this represents an important potential for mobile broadband Today, mobile represents 78% of total Pakistani telco market, and it can be expected to further increase its share in the medium term SOURCE: PTA Data Mobile subscriber base evolution (# of SIMs, mln) Market (Growth) Population total/Median age Voice / MBB Total/ Per Person Usage Total & /User Connected Devices MBB Data Mobile 2013 186 Mn 125 Mn 2,609 TB/Mon 22.4 Yr 1.5 Mn 1,824 MB/Mon 3.47/Person 2020 207 Mn 169 Mn 24.7 Yr 226 Mn 47Mn 194 Mn 327, 430 7,305 TB/Month MB/Mon 1,362 Mn 2025 6.58/Person 26.4 Yr 79 Mn 845,315 TB/Mon 11,220 MB/Mon 2,146 Mn 9.5/Person Source- Population: UN Population Census. Mobile Estimate: Plum Consulting & PTA, MBB Data Usage: Portio Research - Values Interpolated for 2025 from historical growth values , Connected Devices: Futurist Speaker - Values Interpolated for 2025 from world average values POPULATION & CONNECTIVITY Pakistan Satellite Regulations (General Framework) All transmissions to satellites from within Pakistan must be authorized by the licensed operator Satellite terminal equipment must conform to the relevant standards Earth Stations are regulated by PTA • Technical details of registered Earth Stations • FAB looks at the interference related issues 9/21/2014 19 Satellite Regulations Historical Framework (Prior to 2007) Registration of Satellite Service Provider (SSP) Regulation, 2004 9/21/2014 • No fee for registration • Registration for 5 years subject to renewal • SSPs to provide satellite space segment to any licensed telecommunication service provider 20 Satellite Regulations Existing Framework (Post 2007 till date) LDIs can provide Satellite Connectivity • Provided issuance of NOC from PTA/FAB • All other telecom licensees may avail services through LDI GMPCS can be provided by LDI • Provided issuance of NOC from PTA • Subject to security clearance Satellite Regulations Framework (Being Revised) Satellite Communication in new Telecom Policy • Introduction of Class License for satellite services • Open Skies Policy • Encourage foreign investment • Deployment of fixed and mobile satellite services • Foreign satellite be registered with PTA • Local satellite be licensed by PTA GMPCS & Other Services GMPCS licensing provisions Specific end user licence not required. Licensed local SP or "recognized" roaming SP ‘recognised’ means registered with PTA Cellular Mobile Licensee can provide GMPCS services with prior approval of PTA Traffic info to be made available to PTA 9/21/2014 Roaming GMPCS terminals GMPCS on roaming basis is subject to agreements with local partners Prior Registration of terminals required Aeronautical Terminals NOC required for use of Satellite based aeronautical terminals The airlines can apply for NOC for its own use or its passengers use PTA has conditions of use for the Aeronautical Terminals Earth Stations on Vessels (ESV) NOC be issued by PTA for vessels required for within the territorial waters of Pakistan FAB is the point of contact for frequency spectrum 23 Satellite Licensing Regimes CVAS License Fee Infra License Fee LDI License Fee Rs. 50 Mn Rs. 500 K Rs. 10 Mn Services Only Based on LL/LDI/MNO Services only based on LL/LDI/MNO Direct Services No Equipment Import Equipment Import Allowed Equipment Import Allowed Major Satellite Service Providers Paksat-1R SES AsiaSat Intelsat ABS O3B Class Value Added Service Provider – Existing Players S.No Company Space Segment Requirements VSAT Technology 1 Supernet IS‐904, NSS‐12, NSS‐6, SEASAT, PAKSAT‐1R SCPC, iDirect 2 NADRA NSS‐6 ND Satcom/iDirect 3 Cybernet APSTAR‐2R,PAKSAT‐1R, ST‐2 SCPC 4 Wateen Chinasat‐1, PAKSAT‐1R, ST‐2, ABS‐ 1, PAKSAT‐1R, SESAT‐2 SCPC, iDirect 5 Quicklink Chinastar‐1, PAKSAT‐1R, IS‐10, PAKSAT‐1R SCPC iDirect infinity 6 Comstar Chinastar‐1, NSS‐11 SPC, iDirect 7 Nexlinx PAKSAT‐1R, ABS‐1 SCPC, iDirect 8 PakDatacom PAKSAT‐1R, ABS‐1 SCPC, i‐Direct 9 PTCL IS‐904, IS‐10, ABS‐1 SCPC, iDirect 10 Access Tech. C‐Band = ABS‐1 @ 75°E SCPC 11 Inetractive O3B MEO Satellite Bandwidth-Market Broadcasters 25% Telecom Sector 29% Financial Sector 15% Defense 6% Educational Sector 8% Transportation 4% Autonomous Authorities 13% ~ 980 MHz of Satellite Capacity used in Pakistan Source: PTA Estimates Satellite Capacity used by the TELCO Industry Satellite Bandwidth- Operators Satellite Capacity used by the Telco Industry Satellite Capacity used by the Broadcast Industry Satellite Market Characteristics Industry will change further Past Future Rapid Penetration of New Markets Low Penetration Basic Services Horizontal Competition Gradual Growth Of Markets & Networks Priorities Regulatory Change Increased Competition Increased Customer Expectation New Technologies Dev. and Launching of New Products and Services Customer Care Development of Cost Effective Delivery Channels for Products and Services Thank You Contact info: ismail@pta.gov.pk