Islamic Republic of Afghanistan
Ministry of Communications
3 GSM World Congress Barcelona
Ministers Programme
12-14 February 2007
Address at the Government Mobile Forum on
“The Role of Mobile in Creating Essential National Infrastructure”
By A. Sangin, Mister of Communications, Afghanistan
Honorable Chairman,
Excellencies,
Respected Delegates,
Ladies and Gentlemen;
First of all, let me thank the GSM Association for inviting me to attend this
largest and most prestigious 3GSM World Congress event and for providing
me with this opportunity to address the Government Mobile Forum on “The
Role of Mobile in Creating Essential National Infrastructure.”
I also wish to acknowledge the fine work that Mr Rob Conway, as CEO of
the GSM Association, has done in organizing this annual event, which is
recognized as the leading forum for the thought-leadership and practitioners
in the mobile industry. What a spectacular occasion to meet friends and
colleagues from every corner of the world – and to make new contacts.
And it is certainly a great pleasure to be here in Barcelona, on the sunny
shores of the Mediterranean. I am impressed with both the hospitality and
the efficiency of this city – and this, too, makes an important contribution to
the success of this important meeting.
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My Esteemed Colleagues,
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It is a great honor for me to stand before you today as a representative from
an Afghanistan that is free, democratic, growing and characterized by a
vibrant private sector.
During 25 years of war, the people of Afghanistan have suffered some of the
most horrific and appalling circumstances the modern world has witnessed.
Massive devastation has caused turmoil and chaos in the life of 2 whole
generations of Afghans.
During these same 25 years, while the world witnessed digitalization, arrival
of GSM communications and Internet, the Afghans were witnessing war,
isolation and talibanisation. As a result, the people of Afghanistan remain as
one of the most affected by the digital gap.
Our new Constitution and our national elections for President and
Parliament are the cornerstones of our efforts to rebuild a democratic state
with effective national institutions. The new Constitution, one of the most
enlightened in the region, is a balanced charter that guarantees equal rights
and full participation to all of the people of Afghanistan in all spheres of life.
Women are an integral part of the new Afghanistan. The Constitution
guarantees 68 out of 249 seats in Parliament to women and a significant
percentage of women comprise the student body at Kabul University and a
growing number are employed outside of the home. For example, 23% of
the employees of our largest GSM licensee, Roshan, are women and close to
50% of the staff of our independent telecom regulator are women.
The people of Afghanistan have put their trust in the international
community and recognize its role in the establishment of a stable,
democratic Afghanistan. Afghans recognize the benefits of this relationship
and are grateful for the international security and economic support we have
received over the last 5 years
The Afghan economy is well on its way to sustained growth and
development. Over the last 4 years, the average real GDP growth has been
16.6%. Per capita income has grown from US$ 182 in 2002 to US$ 354 in
2006. Our new currency is freely convertible and has remained stable, with
a very low inflation rate. There are now 14 licensed domestic and
international banks and over US$ 100 million dollars of liquidity will be
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pumped into the economy in the form of microfinance loans in the year
ahead.
Another measure of the fundamental changes in Afghanistan is the
blossoming growth of the media sector. Today, we have 7 national TV
channels, dozens of national, regional and local radio channels and hundreds
of newspapers and magazines in multiple languages. TV and radio
programmes from around the world are widely available via satellite and
cable television, but the flow of information is also the other way around.
Several of our broadcasters distribute their original content via satellite
around the world, notably in Europe and North America.
But without a doubt, the biggest success has been in the Telecom and ICT
sector. In 2002, there were almost no telecommunications and ICT in
Afghanistan. Our people had to go the neighboring countries to make or
receive a phone call. Today, people are widely able to sit in the comfort of
their own homes – or even in their own cars – and reach out to family,
friends and business partners at their own convenience.
Based on our policy of creating a market environment that encouraged
private investment, today there are 4 nationwide GSM licensees plus one
nationwide CDMA licensee.
Our first 2 GSM licenses were awarded in 2003 for US$ 5 million each to
Afghan Wireless Communications Company, which is owned by Telephone
Systems International of the USA, and to Roshan, which is owned by the
Aga Khan Development Foundation, Cable & Wireless and MCT.
Additional 2 new GSM licenses were recently awarded for US$ 40.1 million
each – a significant signal of confidence from the private sector. Areeba,
which is now owned by MTN, received its license in October 2005 and
launched its services in July 2006 and Etisalat received its license in May
2006 and is poised to launch its commercial services next month.
Let me take a moment to thank these brave entrepreneurs on behalf of the
Afghan people, because I can tell you, their work has not been easy and their
progress has been nothing short of astounding. I regularly visit the most
remote villages in the mountains of Afghanistan and I am frequently
addressed by village elders with tears in their eyes, who convey to me that
they never in their lives expected to see the power of modern telecom
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services delivered to their doorsteps. Many of these rural families have also
shared with me the wonderment of being finally able to re-connect with their
loved ones who are still abroad as refugees. Dial tone is something most of
us in this room today take for granted, but it is literally a dream come true
for millions of Afghans.
Moreover, the standard of service is world class and the prices are
affordable. Our GSM operators have won prestigious awards from the GSM
Association and other international organisations
Besides the 4 GSM service providers, the Government of Afghanistan also
owns and operates a nationwide carrier called Afghan Telecom. It provides
fixed and mobile services based on the CDMA standard and has around
100,000 users nationwide. Afghan Telecom has been corporatized and we
are actively engaged to achieve privatization as soon as possible – so anyone
in the audience with a checkbook and an appetite for a solid return on
investment, is welcome to contact us.
To complete the survey, there are 15 Internet Service Providers and 2 mobile
satellite licensees reaching deep into every corner of Afghanistan. Our
independent telecom regulator has also just recently licensed two new
regional unified service providers, joining a third who was licensed last year.
These private regional ventures will reach 150,000 customers in rural and
underserved areas within the next two years using the latest wireless local
loop technology.
So far, we estimate that over US$ 700 million has been invested into the
telecom sector since 2003 and this amount is expected to further double in
next 3 years. Over 200 major populated areas of the country have come
under the coverage of telecom services, and this amounts to 70% of the
population and we expect that the coverage will expand to 90% of the
population in next 3 years.
There are now total of over 2.5 million phone users in Afghanistan, which is
equivalent to 10% penetration of the total population – and this is also
expected to grow to over 5 million in next 3 years.
The use of Internet is spreading very fast. Today, all of the 34 provincial
governors and the majority of the 360 district government offices across the
country are interconnected in a so-called Government Communications
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Network with phone, Internet and Video Conferencing services. Never in
the history of Afghanistan has the national political fabric been so strongly
reinforced.
We have recently initiated the installation of a national optical fiber
backbone ring across the country, with links to our neighbors Iran, Pakistan,
Tajikistan, Uzbekistan and Turkmenistan. This US$ 64 million project will
be completed in next 2 years. Our optical fiber backbone ring will connect
the Trans-Europe-Asia backbone in the north with the Submarine fiber in the
south and emerge as the center-stage for a digital silk road.
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My Dear Friends,
It is virtually impossible for me to convey to you the enormity of the impact
that these investments into the telecom sector have had upon the economy of
Afghanistan, but let me share with you a few of the significant highlights.
Our four GSM mobile service providers are not only the largest private
sector investors, but they have brought the following tangible benefits to
Afghanistan:
1. Employment: They have created more new jobs than any other sector –
and these are generally very well-paying jobs, with long-term career
potentials. At present, we estimate 7,000 are employed directly by the
telecom companies, plus an additional 40,000 are employed indirectly.
2. Training: Virtually all new employees receive substantial and ongoing
training, including many areas that were completely unknown in
Afghanistan, such as customer care, sales and marketing.
3. Revenues to the Government: The telecom sector is one of the major
revenue source for the Government. By the end of 2006, the telecom sector
contributed a total of over US$100 million to the treasury of Afghanistan in
the form of taxes, duties and fees. This represents approximately 15 percent
of the government’s total revenues.
4. Security: The telecom operators now reach the top 200 urban centers
nationwide – compared with just six cities covered in 2003. What this
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means is that more and more citizens are on the network, with access to
information, government services and the security forces, and therefore no
longer isolated by distance.
5. Commerce: Mobile services and the internet have greatly improved
domestic as well as international trade. The volume of trade has grown over
50% since 2003, and this could not have been achieved without reliable and
affordable communications.
6. Good Governance: Telecom services are helping the Government to
perform its duties more effectively. Using, voice, internet and video
conferencing services, the Government officials across the country are able
to communicate with each other and with the people resulting in faster and
more convenient delivery of services.
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In closing,
Afghanistan has worked very hard to regain its place as a reliable member of
the international community. Afghanistan has again become a full and
active member of the ITU, we are soon to join the South Asian Association
for Regional Cooperation (SAARC) and we have also begun the WTO
accession process.
Our achievements have already been recognized internationally. The
Ministry of Communications is proud to have received the Visionary of the
Year Award 2006 from the Intelligent Community Forum of USA.
The World Bank made a documentary film about the development of the
telecom sector of Afghanistan which was shown in Bonn in May 2006 in a
PPAIF conference as an example of best global practices.
I am sure that you will all agree that Afghanistan has made significant
progress in a remarkably short period of time. But in the final analysis, we
are simply making it possible for the people to satisfy their demand for a
fundamental human right, which is personal communications. And thanks to
the advent of GSM mobile communications technologies, this demand can
be met both affordably and immediately.
Thank you.
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